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China Company Formation

Updated:2020-5-6 17:38:34    Source:www.tannet-group.comViews:6719

China company formation is one of Tannet’s business incorporation services. Since economic liberalization began in 1978, China has been among the world's fastest-growing economies, relying largely on investment- and export-led growth. Over the years, foreign investors are flooding into this oriental country to seek fortune. Generally, there are four common business presences for investors to choose, namely, Wholly Foreign Enterprise (WFOE), Representative Office (RO), Joint Venture (JV) and Foreign Invested Partnership Enterprise (FIPE), among which WFOE is the most popular among foreign investors to start up their business in China. The following is the basic steps that you need to go through when setting up a WFOE in China. 

Steps for forming a WFOE in China
1. Determine the business scope
China recently abandoned this system, and now both foreign and domestic companies can set up trading companies. Restrictions on export oriented trading companies have essentially been eliminated, but there are still controls on import oriented trading companies that can increase expense and raise costs. Because these rules were only recently changed, the local regulators who must approve these projects do not have a great deal of experience with the attendant issues. This sometimes delays the approval process. It also results in an extremely cautious approach towards adequate capitalization even for export oriented trading companies.

2. Determine if the foreign investor is an approved investor.
Basically, any legally formed foreign business entity is authorized to invest in a WFOE in China. The investor must provide documentation from its home country proving it is a duly formed and validly existing corporation. To meet these requirements, the following documents are normally needed from the investing business entity:

a. Articles of Incorporation or equivalent (copy);
b. Business license, both national and local (if any) (copies);
c. One set of Notarized and endorsed documents from Investing business entity;
d. Description of the investor’s business activities, together with added materials such as an annual report, brochures, website, etc. 

3. Having a Market study to determine the location for forming a WFOE in China 
Before entering into China, it is very important to have a market study for the WFOE, as different cities in China will have different requirements for the WFOE registration, the market study can help the foreign investors to understanding well for the local market. The content of market study can include the studies in products, clients’ orientation, employment, labors.  

4. Choose an professional agent to help with the licenses application to form a WFOE
As forming a WFOE will go through different procedures with government licenses application, it will be more convenient to find a local agent for you and help with the procedures for the approval license and business license application, forming a wfoe in China will take around 25-30 workdays if all the required documents are well prepared.

Tannet Services for forming a WFOE in China
Tannet’s Turnkey solution starts with first analyzing your business scope and operation and then strategizing the best legal and marketing path forward, and its services include:
1. China Market study and China business plan;
2. China company registration, company formation;
2. Registered address and virtual office;
3. Taxes and accounting services customized to our client’s business needs;
4. HR management and payroll services.

Contact Us
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, or emailing to 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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