China WFOE Formation Service

AsiaBC is a Hong Kong corporate service firm with partners in the mainland China, we can support you to incorporate a China WFOE based on your requirement.

What is China WFOE?

Under the corporate laws in the People’s Republic of China (PRC), Wholly Foreign-Owned Enterprise (WFOE) is the mainland China-based business entity designated for non-PRC enterprises to establish their limited liability company in mainland China. WFOE can realize total control in operation and finance in the view of their foreign parent enterprise.

Characteristics

• WFOE is only a separate legal entity for foreign enterprises to do business in China.
• Every WFOE must “fix” its industry category and territory of incorporation on registration, it must stick to these and cannot change these thereafter.
• Based on selected industry and territory, the foreign parent enterprise must inject minimum capital into its WFOE.
• Although WOFE is a limited liability company, the foreign parent enterprise must appoint a legal representative residing in mainland China for the WFOE, this person bears the unlimited personal liability of the WFOE.
• The setup of China WOFE is a complex procedure because of involvement in the state and regional authorities.

Comparison with China Representative Office

For foreign enterprises, the setup of the China Representative Office (RO) is more feasible than that of WFOE when trading and invoicing with customers and suppliers in mainland China is not necessary. Furthermore, China RO is simpler to set up than that of WFOE.

Capital Injection Requirement

Other requirements

Members

• One director
• One shareholder
• One legal representative

Information and documents

• Proposed Chinese name of WFOE’s name (Simplified Chinese)
• Business license, Certificate of Incorporation, Commercial Registration of the foreign investors
• Proposed industry and region of operation
• Passport and/or identification certificate of the legal representative
• Resume of the legal representative
• Lease Agreement for the WFOE’s office, the property right certificate of the owner
• Bank Reference Letter
• Appointment letter from board of members of parent enterprise
• The Article of Association of WFOE
• Entrustment Agreement
• Business scope & products list, Business plan, Organizational structure
• Number of Employee to be employed
• Estimated the investment amount and its assignment

All documents in foreign language must be translated into Simplified Chinese by China Embassy.

Service Fee

Kindly contact us for a initial consultation for free.