The Wholly Foreign Owned Enterprise (WFOE) is a limited liability company wholly owned by the foreign investor(s). In China, WFOEs were 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

Consulting WFOE* RMB 100,000 ~ RMB 500,000 (Approx. USD$ 15,000- 75,000)
Service WFOE RMB 100,000 ~ RMB 500,000 (Approx. USD$ 15,000- 75,000)
Hi-Tech WFOE RMB 100,000 ~ RMB 500,000 (Approx. USD$ 15,000- 75,000)
Trading WFOE / FICE RMB 500,000 ~ RMB 1 million (Approx. USD$ 75,000- 140,000)
Food & Beverage WFOE RMB 500,000 ~ RMB 1 million (Approx. USD$ 75,000- 140,000)
Manufacturing WFOE RMB 1 million or USD 140,000

Injection Terms

Complete Injection within 6 months or:

Capital Contributed at different periods (must inject at least 15 – 20% of the registered capital within three months after the issuance of business license; initial injection amount must meet or exceed the minimum registered capital as set by China company law): The remaining amount of money is to be injected by companies in 2 years time, with the exception of a holding company, which is required to do so within 5 years.

Registration Procedures

Foreign investors are not permitted to directly submit the application documents of incorporate a WFOE to the relevant authority in China. They must retain a PRC entity that is authorized or permitted by relevant authorities to act as a sponsor. The sponsor will submit all the documents to the examination and approval authorities on behalf of the foreign investor. Procedures for setting up a Wholly Foreign Owned Enterprise in China are the following:

  • Name registration with State Administration of Industry and Commerce (SAIC)
  • Certificate of Approval by Ministry of Commerce or Foreign Economical Cooperation Bureau
  • Apply for Business License with SAIC
  • Chops made by Public Security Bureau (PSB)
  • Organization Code License by Technical Supervision Bureau (TSB)
  • Tax Certificate by Taxation Bureau
  • Registration and Approval with State Administration of Foreign Exchange (SAFE)
  • Open foreign currency and RMB bank account
  • Inject capital from investor’s overseas bank account
  • Capital Verification Report by Certified Public Accountant (CPA)
  • Apply for permanent Business License with SAIC
  • Financial certificate registration
  • Statistics license registration
  • Import/Export license (applicable for Trading & Manufacturing WFOE)
  • Value Added Services: Free Visa service, 2 months accounting serivce and more

Feel free to take a look at Asia Business Centre corporate web: China Company Incorporation Services