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WFOE Registration
In China

No stress. Hongda’s experts take care of everything for just one conference call: WFOE setup, and run one year of bookkeeping to keep you compliant.

What Is A Wholly Foreign Owned Enterprise?

As its name suggests, a wholly foreign owned enterprise, also known as a WFOE or WOFE, is a limited liability Chinese company which is invested into with 100% foreign capital and owned by only foreigners.

This company behaves in the same way as any other Chinese company, in that it can trade freely in China, make revenue in CNY, invoice (produce fapiaos) in CNY, can transfer profits back abroad, and can export goods.

Typically a Chinese WFOE will be a subsidiary of a foreign company which is based abroad, but although a Chinese representative of this foreign company, it still operates as a standalone entity within China.

Ready to set up your WFOE now? Just hit the button below to arrange a free consultation with us to talk through your needs.

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Advantages Of A WFOE in China

A Wholly Foreign Owned Enterprise offers:

  • Independence to operate in China the way you see fit, without needing to answer to a local business partner.
  • The ability to trade as a normal company, rather than being simply a local representative.
  • Invoicing in local currency, CNY, as well as the reception of revenue in CNY as well.
  • Can transfer profits in USD to the parent company outside of China.
  • Ability to hire low cost local labour and decide who to hire and when.
  • Efficiency and agility, as there is little need to get bogged down in politics or red tape.
  • Ability to protect intellectual property, as it remains private.
  • All profits belong solely to the WFOE.

> Read more about the pros and cons of a WFOE.


What Is The Capital Investment Needed For China WFOE Registration?

Capital investment was traditionally required to demonstrate that the WFOE, or WOFE as it is often called, would not run out of money before being able to break even.

In recent amendments to the foreign investment laws, perhaps in a bid to spur more investment by lowering the barrier to entry for foreign firms, the government has since removed the minimum capital investment requirement when incorporating a WFOE in the country. 

Companies can now determine how much capital will be required to maintain their operations and must simply ensure that they meet those targets within a period of 30 years. The amount that you commit to will vary depending on the business that you're doing. While it may be more flexible, please note that you will need to commit to registering an appropriate amount of capital upon forming the WFOE (for instance, a factory will require more than a trading company). 


How Does Hongda Business Services' WFOE Setup Process Work?

First we will describe the documents needed. Once we have these you can leave the process to Hongda.

So you can understand what we do on your behalf, we will also describe the different steps that we take in order to finally open your WFOE, and you can download a thorough WFOE checklist as a guide you can keep, too.

Documents Required For WFOE Setup

Gathering the documentary evidence needed to apply for a WFOE is difficult and time-consuming. Hongda will guide you through this every step of the way.
We will require, roughly, the following documents from you in order to open a WFOE (updated May 2020):

  • Company director/s passport copies
  • Legal representative's passport copy and details
  • Company supervisor's passport copy and details
  • Company office lease rental contract
  • Chinese name of company (Hongda will assist with this)
  • Business scope (Hongda will assist with this)
  • Copies of overseas company registration documents (required if a company is the foreign investor)

WFOE setup takes around just 10 working days

The speed with which the process happens is dependent on 2 things:

  • Speed and efficiency of collecting and completing the numerous documents required
  • Good relationship with the relevant government offices

Hongda Business Services have been registering WFOEs since 2007, and have overseen hundreds up to now with a 100% success rate. Not only do our experts have a comprehensive knowledge about what is required in order to make the fastest WFOE application possible, but they also have a long-standing and strong relationship with the right government officials who will be checking your application and approving it.

This article also explains the potential cost of opening a WFOE.


Steps That Hongda Business Services Include In Opening Your WFOE

When cooperating with Hongda, here are the tasks that we undertake to make sure that your WFOE is opened quickly, correctly, and legally.
The following is included when opening a WFOE:

  • Supply all government forms required
  • Assist in filling them out correctly
  • Name registration with State Administration of Industry and Commerce (SAIC)
  • Assist in helping you find suitable business premises within your budget
  • Apply to open a WFOE at the local Administration for Industry and Commerce for you, be that Shenzhen, Guangzhou or Shanghai
  • Apply for business license
  • Apply for the Organisation Code Certificate from the Technical Supervision Bureau (“TSB”)
  • Assist in registering with the Shenzhen State Tax Bureau (“SSTB”) and Shenzhen Local Tax Bureau (“SLTB”) - or same for Guangzhou
  • Assist in the creation of your Chinese company seal
  • Register with local statistics bureau
  • Help you to open a Chinese corporate bank account (foreign currency and CNY)
  • Apply for authorization to print or purchase financial invoices (fapiao)
  • Purchase uniform invoices
  • Register with the local career service center (for staff hiring)
  • Register with Social Welfare Insurance Center

Following the successful application, we will return all of the documents and seal to you and then your China WFOE will be open for business. After establishment of the WFOE, all of the above tasks not yet undertaken must be completed within 30 days, and Hongda always endeavour to complete them well before that time.


Additional Services For WFOEs

Hongda Business Services also offer the following services to streamline WFOEs which are already incorporated or will be soon:

  • Help you to open a Chinese corporate bank account (foreign currency and CNY)

Please hit the button below to discuss setting up your WFOE and about any of these additional services too.

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Doing business with HONGDA is getting a share in our know-how, expertise and dedication. Our determination leaves our customers with peace in mind, as they know our passion and strive for perfection in all that we do.

To ensure that we keep pushing the boundaries of what our market can expect, we relentlessly strive for increased benefits of doing business with HONGDA. To declare our efforts, our daily work is based on 4 tangible, practical promises to our customers - and just as much to ourselves.



Rent office space

Registered address

Online registration via


Company chops

Chops for the new company




Issue contracts and hire employees

Apply for name

Approval and registration

Business license

Apply for a "5 in 1" business license from AIC

Bank account

Opening of bank account

Special Licenses

Customs and import-export Registration - Only Trading WFOE


Sound United

Jack Peng
Sound United Vice President > Asia Pacific

Sound United la leading desianer and manufacturer of consumer audio products in the us) has been usina Honada Business Services since2013 Moving one's operations to China is not a small task, but Hongda's expertservices helped us set up a company and deal with tax issues so we could get on with qrowing our business inno time at a!l, and that's whywe continue to use them today.

Business service Guid

Hongda Business Services helps foreign businesses looking to establish in the PRD (Pearl River Delta, Guangdong), Shanghai and Hong Kong take advantage of everything that China has to offer. We typically work with companies in Shenzhen, Guangzhou, Zhuhai, Zhongshan, Shanghai, and Hong Kong.


How do I set up a company in Shenzhen or the PRD?

Prepare the shareholder certificate, letter of good standing from the bank. Find an office in China. Make the application (of course better find a professional agent in China to help you).

Do I need to have a foreign company to start a company in China?

No, you could also use your personal name to start the company in China.

What are the drawbacks of a WFOE / rep office / JV?

Rep.Office:High tax, could not hire Chinese employees directly.

WFOE/JV: Slow registration time.

The benefit of all is that if you aim to run a business in China, any will allow you to do so. 

Do I need to personally go to China to set up the company?

No, you dont. Hongda Business Services
can help you to do this while you are abroad.

Do I need an actual office space to register a WFOE / rep office / JV?

Luckily now, you dont. Hongda Business Services can provide the office address for registration. 

Which documentation do I need for a WFOE / Rep Office / JV?

Oversea investor's certificate, bank reference letter and office in China are the key documents for each company type. 


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