China Company Registration Process (WFOE)

China Business Setup (WFOE)/China Company Registration
Hotline: 86-755-82143512, Email:tannet-solution@hotmail.com

The Wholly Foreign Owned Enterprise (WFOE) is a limited liability company wholly owned by the foreign investor(s). In China, WFOE(s) are originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. The unique feature of a WFOE is that involvement of a mainland Chinese investor is not required, unlike most other investment vehicles. Below are the stages in the WFOE set-up process.

Choosing a Name
You must choose a suitable Chinese company name when registering a WFOE. The name you choose must not already be registered, and a comprehensive process of name checking is required. Names for WFOE(s) follow a set sequence: company name —— city name, in brackets —— type of company.

Business Scope
One of the most important issues in WFOE application is business scope. Business scope needs to be defined and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval. Inevitably, there is a negotiation with the approval authorities to approve as broad a business scope as is permitted.

Registered Capital
The registered capital of a Wholly Foreign Owned Enterprise (WFOE) should be subscribed and contributed solely by foreign investor(s). When registering a company in China, the WFOE has to be allocated registered capital. The registered capital declared when registering the WFOE had to be paid up within three years of WFOE registration.

Selecting a Legal Representative
For a small company with a clear owner this may not take too long. However, for larger companies with more complex layers of ownership, it can become a very drawn-out process. The trick thing is to identify the person in your organization who will have a long term relationship with your subsidiary in China. Their role in the company is not that important, and the legal representative is largely a nominal role.

Choosing a Parent Company
Some companies use their main trading entity as the holding company when registering a WFOE in China. Others prefer to use the owners or the directors to directly own the WFOE. Another option is to set up holding entities in an offshore jurisdiction, such as Hong Kong or the British Virgin Islands.

Document Preparation
A long list of company documents must be prepared including company license, accounts and tax certificate when setting up a company in China. Not only do the documents need to be prepared, but they also need to be legalized and notarized, which can involve a lengthy process of liaison with solicitors and the Chinese embassy in your country.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.

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