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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 indicates, a wholly-foreign owned enterprise ,or WFOE, is a China-registered limited liability company 100% invested by foreign capital and owned by only foreigners.

A WFOE operates in exactly the same way as any other Chinese-owned company does. It can trade freely in China, make profit and revenue in CNY, issue invoices, transfer its profits abroad, and import/export goods.

A WFOE can operate as a subsidiary of a foreign company whose base or headquarter lies abroad. It may operate as a representative of a foreign company in China, but it still operates as a standalone entity inside China.

Ready to set up your WFOE now? Just hit the button below for a free consultation with us!




Advantages Of Setting up A WFOE in China

A Wholly Foreign Owned Enterprise offers:

  • Independent operation in China in the most suitable way of your business. You don’t need to be bothered by any others.
  • Trade as a general company instead of being simply a local representative.
  • Invoicing and making profits in local currency.
  • Simple profit transfer from China to your assigned account outside China.
  • Select the best candidates from rich talent pools while utilizing the margin of low labor costs.
  • Enjoy related beneficial policies of WFOE instead of the “red tape” and other complexity.
  • Protect your valuable private Intellectual property.

> 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's WFOE Setup Process Work?

We will inform you about everything you need to prepare at one time. Then Hongda will take care of everything for you.

For you to understand what we are doing, we will report different steps and stages to finally set up your WFOE. Our thorough WFOE checklist will also guide you in every process.


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)

Period of setting up your WFOE

The whole period of setting may vary basing on:

  • Speed and accuracy of collecting and submitting numerous documents required.
  • Close public relationship with government authorities.
Hongda has been focusing on WFOE setting up since 2007, and we are proud of our 100% success rate for hundreds of clients so far. Our experts not only have a comprehensive understanding of the requirements to make WFOE application fastest, but also built a strong and close public relationship with administrative departments which will be checking and approving your application.
This article also explains the potential cost of opening a WFOE.
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Rent office space

Registered address

Online registration via


Company Seals

Seal engraving for the 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

Everything You Need To Do


Consult and confirm proposal

Book a free consultation with our experts and receive our comprehensive proposal for you to confirm.


Contract Signing and make payment

Sign the service contract and make payment.


Preparing Documents

We will send everything that you need to prepare, not hard at all.


Wait for the good news

Leave rest of the work to Hongda and we will inform you in 1-2 weeks.


How should I name my WFOE in China?

To name your WFOE in China, according to the Company Law of the P.R.C., you will have to follow the regulated format:

  • Location of company + Company name/title + Category of operation + Business type.

You can know more about the naming regulations in our blog: How to name a Chinese company (for foreign investors).

What are the general types of WFOE in China?

There are three types of WFOE that you can choose to register, depending on the main operation activity of your company:

  • Manufacturing WFOE: manufacture and resell goods and products;
  • Trading WFOE: trading, wholesales, retail, or franchise in China;
  • Consulting WFOE: consultancy & services;

Do I need to travel to China to register my WFOE?

No, you don’t need to travel to China. By partnering with Hongda, you can enjoy remote WFOE registration service. All you need to do is to prepare some documents and deliver them to Hongda and let us take care of the rest of the work.

What is the minimum investment required to set up a WFOE?

In 2014, China amended its Company Law to abolish minimum capital requirements. However, every city may impose its capital requirements, especially for manufacturing WFOE or WFOE engaging in special industries requiring additional licensing.


For most companies, the amount of minimum capital will depend on the location and the nature of the business. You can book a meeting with our experts to discuss your business plan and I can help you determine the amount of your register capital.

What are the benefits of setting up a WFOE?

One of the features of a WFOE was limited liability. This is also considered advantageous to individuals who plan to own or run a WFOE in China, as they would have protection. Having a WFOE is one of the best ways of remitting money back to the originating country of the enterprise. A WFOE allows owners to employ staff, and trade, as well as all the other actions that only a company set up by an individual in China could usually perform.


What are the ongoing compliance requirements for a WFOE?

The basic compliance requirements for a WFOE include:

  • Monthly accounting and bookkeeping;
  • Filing quarterly and monthly tax returns;
  • A renewal of documents such as the business registration certificate;
  • Examination or auditing of financial documents;
  • Tax filing;

It is a great idea to choose Hongda’s all-in-one package for life-long support to keep you compliant all year long.

How long does it take to set up a WFOE in China?

The period of setting up a WFOE may vary in different cities. Generally, it will take about 1 week or a little bit longer to register your WFOE once every material is prepared correctly. In some cities, for example, Shenzhen, the headquarter of Hongda, the process can take only 1 working day if everything goes smoothly.

What are the company seals and why they are important?

Company seals are also called company chops or company stamps. They are generally used to replace signatures as used in Western countries. A company seal is the official representative and legal evidence of the company’s activities.


The most important one of all the seals is the official company seal. It has the widest scope of use among all the seals and it stands for the company itself. All letters, official documents, or contracts issued in the name of the company can be stamped with the official seal, which will legally bind the company. Keep it SAFE!

What is the role of a supervisor in a WFOE?

Each company should have at least one supervisor, both for Chinese companies and WFOEs. The supervisor has to be Chinses citizen and should not be appointed as the general manager, board director, or financial director at the same time.


The supervisors' main role is to protect the interest of the company and the shareholders. The supervisors will above all be required to oversee the business of the company; for such purpose, supervisors have the right to check the financial affairs of the company and inspect the company's books. In general, whenever they find that the company is not running normally, supervisors are required to conduct an investigation.


Sound United

Jack Peng
Sound United Vice President > Asia Pacific

Sound United is the leading designer and manufacturer of consumer audio products in the US. Sound United has been using Hongda since 2013. Moving one’s operation to China is not a small task, But Hongda’s expert services helped us set up a company and deal with tax issues so we could get on with growing our business in no time at all, and that’s why we continue to use them today.


Business Service Guidance

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.


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