Setting up a WFOE
Guidance of Setting up a WFOE in China
WFOE as the most popular corporate structure for foreign enterprises and wholly owned 100% stocks as a subsidiary in Chinese Mainland.
With the deepening of economic reforms, a growing number of foreign companies, corporations, organizations, entrepreneurs have established their brands in China market with different industrial products, technologies and brands support. Most of them chose setting up the most popular corporate structure: wholly foreign owned enterprise ( WFOE / WOFE ) to do services, trading, technologies, engineering and others business scopes.
With the innovation of new 5-in-1 business license and the reformation of registered capital subscription system, the procedure of establishing a WFOE has become easier and quicker to obtain approval from local government offices. Whatever your China WFOE does, we have confidently and expertly experience to solve different industrial cases with our fast response services.
Business Activities of a Chinese WFOE
Obtain a business licence you have to list details business activities to local Market Supervision and Administration. Mainly includes below top 5 popular industries:
- Service and consultancy industries.
- Domestic and international trading.
- Engineering and project management.
- Technology innovation industries.
- Manufacturing and industrial entities.
More business activities, please learn from: How Selecting Business Scope
Timeline – 20 Working days for Setting up a Chinese WFOE
Step 1. Name Approval – 3 Working days
You may get in touch with our online experts to obtain a list of requirements, once you place an order to our teams, SMEsChina will collect relevant information and files from your decision and submit name approval immediately for your China WFOE. And our consultants will send you one form, you have to complete it to confirm WFOE structure. Learn more: Company Name Requirements
Step 2. Preparation of Required documents – 5 Working days
This step depends on your cooperation, you have to prepare required documents from China Embassy in your home country, and meanwhile, SMEsChina Teams will apply for official legal documents and forms from different government departments and send you to sign, do not worry about this procedure please, all documents include both languages. Other official forms and application paper also through our teams and online guidance to provide assistance to help you filling in and completing.
Because the complexly requirements for different industrial investment guidance, need you to prepare and collect different industrial requirement, legal files, application forms and key positions of company structure, we suggest you contacting our online consultants first to get a list for required documents of registering a WFOE. Learn more: Foreign Company Incorporation Requirements
Step 3. Obtain a Business License – 5 Working days
Submit signed legal files, forms to local Market Supervision and Administration, you will obtain a official five-in-one business licence and certification of registration of wholly foreign owned enterprise. Five-in-one license means business licence, organization code, taxpayer certificate, social insurance certificate of registration and statistical registration certificate.
Some special industries also need other permits to get approval, such as import and export permits, food business permit, healthy exam, dangerous chemicals permits. These additional process needs extra costs and time.
Step 4. Company Seals / Stamps – 2 Working days
Unlike practices in the oversea countries, Chinese government stipulates that all Chinese WFOEs and business entities must apply for official company chops to validate contracts and legal documents once you running business here, you will obtain a company seal, a financial stamp, and legal representative seal, and all of them have the legal authority over the signature. And if your company includes foreign shareholder(s), you may choose an English company name to register on the foreign currency account and international trading certificate.
Step 5. Corporate Bank Account – 5 Working days
Your China WFOE needs to apply for a local corporate bank account to operate businesses, with the international development of Chinese banking industry, more and more oversea investors and foreign entrepreneurs prefer to create a Chinese local bank for their wholly foreign owned enterprises to handle daily business transactions conveniently and safely.
Once your corporate account be approved you will obtain a set of internet banking system and u-keys to operate daily payment wherever you are.
Now, your China WFOE entity legally exists. You can startup and run you businesses in Chinese market. Same time SMEsChina can assist you registering tax system and apply for invoice machine once you have Chinese local customers, and in the future, if need we also can help you opening social insurance and housing funding accounts for you local employee and work visa and resident permits for foreign staff.
SMEsChina assists foreign business entities setting up a WFOE smoothly and comfortably by our professional experience and excellent service tems.
Why Choose Us? Completely service resource assisting global foreign enterprises setting up a WFOE entity in China with our confident and excellent experience since 2001.
WFOE Structure? 3 key positions must be contained, shareholder(s), supervisor, legal representative ( executive director ). All nationalities can be these key positions depending on your decision.
Registered Capital? The minimum registered capital is 20,000 USD for general industries, special industries stipulated separately. You can inject the capital from oversea account with foreign currencies within 30 years. Learn more:Requirements of Company Registered Capital In China
Whole Process? Do not need to visit or travel to Mainland China personally, whole procedure completed by online communication. Contact us to get model articles to fill in and send us to submit. Extend reading: Top 2 Chinese WFOE Categories