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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!

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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.


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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