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.
A WFOE is 100% foreign owned,
but can trade freely in China
A Wholly Foreign Owned Enterprise offers:
A WFOE in China offers independence to foreign companies.
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 ammendements to the foreign investment laws, in a bid to spur more investment by lowering the barrier to entry for foreign firms the government has since removed the minimum capital 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 10 years.
Minimum capital injections
for foreign companies entering China are
no longer a requirement
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.
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:
China wfoe registration with Hongda Business Services is very fast, taking just 30 working days.
WFOE setup takes around just 40 working days
The speed with which the process happens is dependent on 2 things:
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.
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:
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: