Best Consultancy for China Wfoe Formation | Chinese Wfoe Registration
WFOE stands for wholly foreign owned enterprise, which is a Limited liability company wholly owned by the foreign investor(s). WFOE means the foreign investors (including Hong Kong, Macau, Taiwan) established the enterprise within Chinese territory, in accordance with 《PRC Wholly Foreign Owned Enterprise Law》, with capital provided solely by the foreign investor. The foreign investors refer to the foreign enterprise, individual or partner. (Including Hong Kong, Macau and Taiwan).
In Shanghai, WFOE were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. However, with China’s entry into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well.
Advantages of WFOE
The advantages of establishing a WFOE, compared with other types of enterprises, include, but not limited to:
– Having the freedom and independence to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
– Capable to perform business transactions rather than just providing the support functions as a representative office;
– Able to issue invoices to their customers in RMB and receive revenues in RMB;
– Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
– Protection of intellectual know-how and technology;
– Greater efficiency in operations, management and future development.
Company Name
In China, only Chinese company names are officially used, while English company names for reference only.
Note: We help you to translate or come up with a proper Chinese company name.
The Company Registry will accept not every name. Your company name must be distinguished from the others registered name before.
For some sectors such as education, logistics, medicine and food industries, pre-approval special license is needed.
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.
－ Foreign investment enterprises engaged in wholesaling or trading business
－ Commodity Importation /Exportation
－ Production of products within the scope of business
－ Information consulting /Technical development/Investment consulting business
Registered Capital
No specified requirement (except specific industry)
Registered Capital
No specified requirement (except specific industry)
