China Company (WFOE)
The preferred method for foreign entrepreneurs who want to maintain full control of their business in mainland China.
Set Up Your WFOE
WFOE Set Up China – Business Entry for Foreign Investors
A Wholly Foreign-Owned Enterprise (WFOE) is a limited liability entity in China that is 100% owned by a foreign individual or company. It grants full management control and the ability to operate legally, hire staff, and invoice in RMB without requiring a local partner. Whether your sector is tech, manufacturing, trading, or consulting, a WFOE is your gateway to China.
Why Set Up a WFOE?
- Full ownership and decision-making control
- Legal ability to issue fapiao (tax invoices)
- Direct hiring of local and foreign employees
- Protection of intellectual property
- Profit repatriation to your home country
What’s Included
- Legal structure review and consultation
- Chinese name registration and approval
- License application and document preparation
- Company chop and bank account setup
- Tax and VAT registration
- Registered address support
Basic Requirements
- At least one foreign investor
- Minimum registered capital (RMB 100K+)
- Lease or virtual office address in China
- Chinese-speaking finance contact
Registration Process
- Confirm scope and business activities
- Register company name and address
- Submit license application to AMR
- Engrave company chops and open accounts
- Complete tax bureau and HR registration
Compliance, Taxation & Hiring
To remain compliant, WFOEs must handle monthly tax filings, social insurance, and annual audits. Our team ensures full compliance with China’s regulatory framework. Once established, your WFOE can legally hire both Chinese and foreign talent — we assist with contracts, onboarding, and work-visa processing. Cities like Shanghai, Shenzhen, and Hainan offer special incentives for foreign-invested enterprises, including tax holidays and fast-track registration.
WFOE Set Up China – Frequently Asked Questions
What is the minimum capital required for WFOE set up in China?
Although there is no official minimum capital requirement in most industries, WFOEs typically declare RMB 100,000 to RMB 500,000 depending on the business scope and city. Capital can be injected over a period of time.
Can a WFOE in China hire foreign employees?
Yes. Once established, a WFOE can sponsor Z-visas and work permits for foreign nationals. You must comply with local labor laws and register for social insurance contributions.
How long does it take to complete WFOE set up in China?
The full WFOE registration process typically takes 6–8 weeks depending on the city, your business scope, and how quickly documents are prepared. Expedited options are available in select regions.
What industries are eligible for WFOE registration?
Common industries include consulting, e-commerce, IT services, manufacturing, and trading. Some sectors require pre-approvals or are restricted under the Negative List.
Do I need to visit China in person to set up a WFOE?
In many cases, a physical visit is not required. We can assist with remote WFOE set up, including digital document handling, virtual address leasing, and bank account coordination.
Can I use a virtual address for WFOE registration?
Yes, in many cities across China, virtual addresses are permitted for WFOE registration. We can help you secure compliant virtual office solutions.
Do WFOEs need to submit audited financials?
Yes. WFOEs are required to submit audited annual financial reports, as well as regular tax and compliance filings throughout the year.
What taxes does a WFOE need to pay?
WFOEs are typically subject to 25% corporate income tax, value-added tax (VAT), and additional local surcharges. Industry-specific taxes may also apply.
Can a WFOE repatriate profits out of China?
Yes. Profits can be repatriated after tax compliance and audit clearance. Funds must be transferred through approved channels and meet foreign exchange requirements.
Is it possible to convert a representative office to a WFOE?
No, a representative office cannot be directly converted into a WFOE. You must register a new WFOE and close the rep office separately.
Can I register a WFOE under a foreign company’s name?
Yes. Your foreign parent company can act as the shareholder of the WFOE, allowing you to expand while preserving group ownership.
Do I need a Chinese director for my WFOE?
No. A WFOE can be fully foreign-owned and managed. However, a local finance contact fluent in Chinese is required for tax filings and government communication.
Can I open a bank account remotely for my WFOE?
Some banks in China require the legal representative to be present. However, remote options and pre-approval setups are available in certain cities and banks.
What documents are needed to start the WFOE process?
You will need a notarized passport or company registration documents, a business plan, lease contract or virtual address agreement, and shareholder resolutions.
What ongoing compliance is required after WFOE set up?
WFOEs must submit monthly VAT returns, quarterly CIT filings, annual financial audits, and maintain statutory books and licenses to stay compliant.