WFOE Registration
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).

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;

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.

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.

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.

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.

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.

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!

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.