China WFOE Company

Wholly Foreign Owned Enterprises (WFOEs) are a common investment vehicle for businesses based in mainland China, as they are the only way a foreigner can completely own and control their own Chinese enterprise.

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Advantages

A WFOE company does not require the involvement of an investor from mainland China and can be formed entirely of foreign capital.

They can continue with their global strategies without any possible interference by a Chinese partner.

Unlike a Representative Office, a WFOE can carry our business and generate profits.

It is generally ideal for production, processing or distribution firms. A WFOE is often utilized to produce the products of a foreign firm in China to then later be exported out of China.

It is possible to both receive and send Chinese currency to the company’s parent company outside of China.

There is also increased protection for trademarks and intellectual property, as they are subject to international law.

The shareholder’s exposure to liability is limited to the original investment.

A WFOE has complete authority over their human resources operations.

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Disadvantages

WFOEs do not initially have the right to sell their products in mainland China, although this can be overcome with the alternate structure of a Foreign Invested Commercial Enterprise WFOE.

The scope of business activities in which the WFOE is allowed to engage is strictly distinguished in the Articles of Association. A broadening of this scope would require further approval.

There is limited access to support by the government for a WFOE, and thus the learning curve can be quite steep for those who are largely unfamiliar with the Chinese market.

A WFOE requires foreign investment to constitute its registered capital, which is an obligation that Representative Offices do not face.

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Requirements

Company Name:

In China, a WFOE must have their company name approved before continuing its application. Company names are subject to regulation by the “Provisions on Administration of Enterprise Name Registration”.

Directors:

There should be a minimum of one director at a WFOE, who can be of any nationality.

Shareholders:

There should be a minimum of one shareholder, who can be either a corporation or a natural person.

Company Secretary:

For a WFOE, a company secretary is not required.

Registered Address:

A business address in China is required in order to be used as the official address of a WFOE company. If you need a work visa to set up your WFOE, you need to rent a physical office. The location of the office doesn’t matter, although it is recommended that it is at least 40 to 50 square meters in size.

Minimum Capital Requirements:

For a services WFOE, we recommend a minimum capital requirement of 100,000 RMB, and for a WFOE in the trading industry, we recommend at least 300,000 RMB as the minimum.

Annual Reports:

It is necessary to file annual audits. These include balance sheets and income statements.

Registration Documents:

All documents must be submitted in Chinese, and are the same for each location that we provide offices in.

Setup Time:

The average setup time for a services WFOE is around 1 month, and around 2 months for trading WFOE.

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Basic Package

Organization Code Certificate

Tax Registration Certificate

Certificate of Approval

Corporate Business License

Authorised Signatory Stamp

Company Chop

Services Included

Conducting a company name search

Reviewing client documentation and application materials

Preparing incorporation documents

Monitoring the entire incorporation process and keeping clients updated

Locations

Additional services

Assistance on Bank account openingCN¥1800

We will book an appoitment for the bank account opening. We will also deliver and prepare all necessary company documents for the process.

Nominee director (per year)CN¥6580

Nominee shareholder (per year)CN¥2015

Accounting (per month)CN¥500

Includes bookkeeping and payroll

Accounting (per month)CN¥2500

Includes bookkeeping and payroll

Registered address for companyCN¥10200

1*Register address in Shenzhen Futian One YearCN¥8000

1*Self-Serviced office in Xintian Century Business Center(month)CN¥2200

order summary

Total CostCN¥0

Yearly CostCN¥0

(You will only be charged after one year. You can cancel at any time.)

Monthly CostCN¥0

(You will be charged every month. You can cancel at any time.)

China WFOE Company

Advantages

Disadvantages

Requirements

Basic Package

Services Included

Locations

Additional services

order summary

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