Register a Company in China
Wholly Foreign Owned Enterprise (WFOE)
WFOE (also known as WOFE – Wholly Foreign Owned Enterprise) is actually a Limited Liability Company owned 100% by foreign investors. It can be started by anyone above 18, and can have 1-50 shareholders.
Best Uses for WFOE?
Foreign entrepreneurs register WFOE for different reasons – import and export, business consulting, online stores etc. WFOE is required if our Clients want to sell on Chinese e-commerce platforms – taobao, tmall.com, jd.com and others. Also, WOFE is used to apply for a VAT refund in China.
Freelancing with WFOE?
If you’re a freelancer and want to relocate to China, WFOE maybe the perfect option for you: Since there’s no freelancer visa in China, it is possible to register a single shareholder WFOE, appoint yourself a director of the company, apply for a work visa, and move to China to run your company. There’s no requirement to hire anyone – foreign or local.
What is a WFOE?
Wholly Foreign Owned Enterprise (WFOE) or also known as Wholly Owned Foreign Enterprise (WOFE) is the most common type of company among foreign entrepreneurs in China. As the name suggests, this type of company is 100% owned by foreign shareholders.
Technically speaking, WFOE is a limited liability company, and it can be formed by a minimum of 1 and maximum of 50 shareholders of any nationality, 1 director (aka legal person -of any nationality) and 1 supervisor (of any nationality).
WFOEs can be in different business scopes, for e.g. trading, business consulting, cultural promotion, sports consulting, IT consulting, international trade, manufacturing, banking etc.
Since 2016, most common types of WFOE in China – Trading & Business Consulting don’t have any paid-up capital requirements, i.e. one can start a company without depositing any capital into the company account.
Can I export/import products with a WFOE?
Yes, with a General Business License, WFOE can have a long list of products it can import and export. Some products, however, require additional licenses – alcohol, food & beverage, dangerous chemicals etc.
Can a WFOE own property in China?
Yes, foreign owned companies (WFOE) can purchase properties in China. However, renting it out to others is not always allowed.
Can students start a WFOE in China?
Yes! foreign students can start their their own companies in China. However, until they change their student visa to a work visa, they will not be allowed to get paid from their company.
How to invest in WFOE?
If you’re thinking of injecting capital to your WFOE in China, it might not be possible directly from China – capital will have to come from abroad.
WFOE names – how to?
How to choose a WFOE name? China, unlike other countries, requires foreign entrepreneurs follow a certain structure when choosing a name for their companies in China.
Corporate Bank Account for WFOE?
Is it hard to open a corporate bank account for a WOFE in China? Unlike other countries, opening a corporate bank account in China is much easier.
Trading WFOE
Import - Export- Name Check & Reservation
- Company Registered Address*
- Incorporation
- Company Seals (chops)
- Company Tax Registration
- Company Customs Registration**
- Company Bank Account Opening Assistance***
- Bookkeeping & Payroll****
- FREE Consultation on company related matters
Consulting WFOE
Business Services- Name Check & Reservation
- Company Registered Address
- Incorporation
- Company Seals (chops)
- Company Tax Registration
- Company Bank Account Opening Assistance
- Bookkeeping & Payroll
- FREE Consultation on company related matters
Restaurant / Cafe
WFOE - Fully Foreign Owned- Name Check & Reservation
- Company Registered Address
- Incorporation
- Company Seals (chops)
- Company Tax Registration
- Company Bank Account Opening Assistance
- Food & Beverage License
- Bookkeeping & Payroll
- FREE Consultation on company related matters
* Company Registered Address: This address can only be used to register your company, register it with tax and custom office. The address cannot be used for obtaining visas and company’s day-to-day operation (i.e. working).
** Company Customs Registration: It is for general products and service which do not require special licenses and permits. If the products / services your company sells require special permits / licenses, additional fees will apply. Please speak to us if you have questions on this.
***Company Bank Account Opening Assistance: This service requires the company director physically be present in Mainland China, be a citizen of an unsanctioned / unrestricted country, hold a valid visa that Mainland China banks accept for account opening.
****Bookkeeping & Payroll: This service is limited to monthly and annual tax filings and issurance of Chinese invoices (fapiao) to the clients of the company, reporting salaries of employees to tax office. This service does not include VAT refund. If you require VAT refund, please speak to us.
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