WFOE in Shenzhen, Guangdong, China

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.

Advantages Of A WFOE in China

• 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.

Registered Capital

No specified requirement

Required Documents

• WFOE application form and resolution by Foreign investor’s chairman, signed and stamped (Includes scope of business - Hongda will assist in devising the scope in order that you apply for the correct WFOE for your business needs, and that you have the maximum flexibility to perform all of the business activities that you’re likely to undertake in China)
• List of directors’ names
• Letter of authorisation (4X - This letter is authorisation for the WFOE to be set up by the foreign investor)
• Passport copies of investor, and management of China company
• Feasibility study (Hongda will help you to produce this study, and it will be in Chinese, include the first year business plan and budget, and include the company seal)
• Copies of the business license of the foreign investor company (2X stamped)
• Copies of articles of incorporation of foreign investor company (2X stamped)
• 2X Certificate of Status (original)(U.S. and Canada) or a notarized copy of the Corporate Register for the investor or similar document (original)(Civil Law jurisdictions)
• CV of China legal representative (investor) and 6 passport photos
• Investor company’s business activity report (Includes business description, brochures, images, and contact information such as website)
• An original copy of lease agreement for your business premises in China (2X stamped), certificates of real estate ownership (2X stamped), and landlord’s ID (2X stamped)
• Bank reference letter from investing company’s bank, and bank statement showing 6 month’s balance - demonstrates the good standing and financial stability of the investor (2X Originals and Chinese translation)
• Approval paper for corporate formation (Copy)
• Notice of enterprise's name confirmation appraised by the Industry & Commerce Administrative Bureau (Hongda will help to apply for this, and can assist in the choice of Chinese company name)
• 2 passport photos of the investor
• Proof of investor capital (Usually 100,000 CNY, but this depends on WFOE type)
• Corporate certificate of approval receipt (Copy)

Company Incorporation Services Include:

• China Company Incorporation
• Company Registration in Qianhai Free Trade Zone
• Hong Kong Company Incorporation
• Foreign Investment Manufacturing Enterprise
• Foreign Investment Trading Enterprise
• Foreign Representative Office
• Foreign Investment Consulting Enterprise
• Sino-Foreign Equity Joint Venture
• Sino-Foreign Co-operative Joint Venture
• Transformation of "Processing & Assembly" Companies
• WFOE in Shenzhen, China