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China Wholly Foreign Owned Enterprise (WFOE)

Business Formation

Update Date:2023-1-5 17:40:54     Views:2748

China FIPE Formation Service
Hotline: 86-755-82143348,

China Wholly Foreign Owned Enterprise (WFOE) is a common investment vehicle for mainland China-based business. The unique feature of a WFOE is that involvement of a mainland Chinese investor is not required, unlike most other investment vehicles. WFOEs are limited-liability corporations organized by foreign nationals and capitalized with foreign funds. This can give greater control over the business venture in mainland China and avoid a multitude of problematic issues which can potentially result from dealing with a domestic joint venture partner.



The capital to be subscribed in lump sum as contemplated in the Articles of Association could be paid up within 10 years from the date of issue of Business License. But if you need to apply for the visa, the capital shall be paid up at least 50% firstly while the following could be paid up in the following within 10 years.


Advantages of China WFOE
The advantages of establishing a WFOE include, but are not limited to:
1. Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
2. Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to customers in RMB and receive revenues in RMB;
3. Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
4. Protection of intellectual know-how and technology;
5. No requirement for Import / Export license for its own products;
6. Full control of human resources
7. Greater efficiency in operations, management and future development.

Business scope of China WFOE
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. Generally business scope includes investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc. With China's entry into WTO, more and more business is open to WFOE especially in Trading, Wholesale and Retail business.


Registered and paid up capital of China WFOE
Registered Capital: USD$140,000 is a decent investment capital for many types of WFOE. (with USD$ 140,000 investment it's easy to get approved). Initial Paid-up could be 20% of the registered capital, with the balance being remitted within 2 years. RMB 100,000 ~ RMB 500,000 (Approx. USD$15,000- 75,000) is the minimum investment capital to be approved for Consulting WFOE, Service WFOE, Hi-Tech WFOE registration.The minimum registered capital guides for various industries according to our practices in China.


Contact us

China Wholly Foreign Owned Enterprise (WFOE) is a good way for foreign investors since the Independence and freedom to implement the worldwide. ATAHK could assist the investors to set up the China Wholly Foreign Owned Enterprise (WFOE), China Foreign Invested Partnership Enterprise (FIPE), China Joint venture (JV) and so on. For further queries, you are welcome to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website, or calling at 86-755-82143348, or emailing to

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