China Company Formations

Wholly Foreign Owned Enterprise (WFOE) Incorporation

Entry into the Chinese market does not require a Chinese partner and ou would likely be setting up a WFOE (Wholly Owned Foreign Enterprise) instead of a local company if you wish to incorporate a company without a Chinese partner.

A WFOE is a limited liability company wholly owned by a foreign investor.

Advantages of Wholly Foreign Owned Enterprise

The advantages of establishing a WFOE, compared with other types of enterprises, include, but not limited to:

  • Having the independence to implement the strategies of its parent company without having to consider the Chinese partner
  • Able to issue invoices to their customers in RMB and receive revenues in RMB
  • Capability of converting RMB profits to € for remittance to its parent company outside of China
  • Allowed to hire local staff

One of the most important issues in WFOE application is business activities and these need to be defined, and the WFOE can only conduct business within its scope, which appears on the business licence.

Documents Required

The documents needed for incorporating a Wholly Foreign Owned Enterprise.

  • Copy of Business License of parent foreign company which was certificated by Chinese Embassy (if it's personal investor, then passport copy certificated by Chinese Embassy is enough)
  • The latest annual audit report from the parent foreign company.
  • a credit reference from the foreign company banker to declare a good credit within at least current 6 months
  • The resume, copy of the passport and 3 pieces of passport size photos of the Legal Representative of the WFOE
  • The parent company's legal representative's passport copy
  • Business scope and how long the WFOE is going to do business in China
  • Brief introduction of the foreign investor(s) including name, address and telephone number
  • Total investment and registered capital and the makeup of investment
  • Options of Chinese company name (Note: only Chinese company name is to be registered with Chinese government. We help you to translate or cassist with the Chinese company name)
  • Two copies of original office/factory rental contract and photocopy of real estate certificate with the seal or signature of the landlord.

The above document is enough to register a Trading & Consulting WFOE. If you want to register a Manufacturing WFOE more documents will be required.

Registration Procedures

Foreign companies are not allowed to directly submit the application documents to the relevant authority. They must retain a PRC entity that is authorised or permitted by relevant authorities to act as a sponsor. The sponsor will submit all the documents to the examination and approval authority on behalf of the foreign enterprise. Generally, it will take about 2 to 3 months and the procedures to set up the Wholly Foreign Owned Enterprise are as follows:

  • Check and Register Company Name
  • Apply for Approval Certificate
  • Apply for Business licence
  • Apply for Organization Code licence
  • Tax Registration with Tax Bureau
  • Open a RMB bank account
  • Register Foreign Currency Certificate
  • Examine the registered capital
  • Obtain Import/Export licence and VAT invoice (Optional as it applies only for Trading WFOE)
  • Register in local custom (Optional as it applies only for Trading WFOE)

The registration time for a WFOE manufacture and consulting company is two months provided all the documents required are ready. It takes two and a half months to complete a WFOE trading company incorporation provided all the documents required are ready.

Share Capital for a WFOE

The minimum required capital is dependent on the businesses activity:

Types Minimum Registered Capital
In Free Trade Zone RMB 10,000
Consultancy RMB 100,000 - RMB 500,000
Servicing RMB 100,000 - RMB 500,000
Hi-Technology RMB 100,000 - RMB 500,000
Trading / FICE / Retail RMB 500,000 - RMB 1,000,000
Food & Beverage RMB 500,000 - RMB 1,000,000
Manufacturing / Production RMB 1,000,000

We recommend RMB 100,000 Issued Share Capital, a figure which would be accepted for all types of WFOE.

You need to pay up 20% on incorporation, with the rest paid within two years. - compulsory minimum share capital levels depend on the City and the activity of the company.

Company Secretary

Foreign Limited Liability Companies in China are required to appoint a resident company secretary.

Chinese Legal Representative

For foreign companies in China, a legal representative must be appointed. This person is to act on behalf of the company, generally regarding signing contracts and submitting reports to the regulators. This person may also be a director and/or shareholder of the company if necessary.

Annual Return

Each year an annual return must be lodged with the Company Registry and the Inland Revenue.

Private Company - Limited by Shares

For private company's having share capital, the annual return and registration fee must be lodged within 42 days after the anniversary date of the company's incorporation (except the first year).

Financial Statements

Companies in China must prepare and submit financial statements to a number of governing bodies such as the local Finance Bureau, local offices of State Administration and Industry of Commerce, State Administration of Taxation and the Foreign Exchange. These financial statements must be audited and submitted to the relevant authorities within 4-6 months of the year end - following the fiscal year from 1 January to 31 December.


Companies in China must appoint an auditor to audit all accounting and reporting documents, who must be a Chinese registered certified public accountant

Contact Us
only required if you wish us to call you back
China Fees to Incorporate
  • Company Formation - £3700
  • Registered Office Fee - £1500
  • Company Secretary if required - £850
China Annual Maintenance Fees
  • Registered Office Fee - £1500
  • Company Secretary if required - £950
  • Directors Register Maintenance - £120
China Advantages
  • Time - 2 - 3 months to incorporate your Chinese company
  • Shareholders - 100% foreign shareholders allowed
  • Share Capital - the share capital requirement is dependent on business activity with the minimum RMB 1,000,000
  • Registered Office - your company requires a registered office in China, which we can provide
  • Company Secretary - a resident company secretary is required
  • Support - using our 20 years experience we guide you throughout every step of the company formation process


Required to Proceed
  • Company Name - We can check your company name is available
  • Passport - colour scan of your passport
  • Documents - copy of a utility bill, credit card or bank statement showing your private address
  • Start now - complete here
  • Upload - proof of address & copy passport can be uploaded here