I. Concept of a wholly foreign-owned enterprise:

A wholly foreign-owned company is commonly referred to as WFOE. There are generally three forms in China: trade, service and production. Service companies are similar to trade companies, namely a little simpler. However, the service industry has a wide range, such as advertising, logistics, film making, travel agencies and talent intermediary services, these all require special permission. Therefore, I only introduce the establishment of foreign-funded general service companies for your reference. Please refer to other items of this website for other types. 

II. Advantages of a wholly foreign-owned enterprise

1. The global strategy of the parent company can be carried out independently.

2. There is the ability to carry out business, without a number of restrictions like a representative office.

3. RMB can be charged and paid, and the invoice approved by the tax bureau can be issued to domestic customers.

4. Operating profits can be freely converted into other currencies via RMB, so as to be paid to the overseas parent company, and the domestic employees can be directly employed.

5. The tax policy enjoyed is the same as that of domestic-funded enterprises

6. The intellectual property rights and related proprietary patent technology can be protected. 

III. Registered capital of a wholly foreign-owned enterprise

A lot of customers are concerned about the minimum registration capital. The government’s official statement is that: the registered capital shall be consistent with the project investment scale. We recommend that the registered capital should not be less than USD 140,000 (namely RMB 1 million). Although the requirement for the minimum registered capital of RMB 30,000 in the Company Law is also applicable to the foreign-funded enterprises, it is recommended that the registered capital of a foreign-funded service company should not be less than USD 30,000 in the practice.

According to our actual experience, “The Minimum Registered Capital” is a result of multiparty game: the investment project itself, different regions of Foreign Economic and Trade Commission and our communication.

The registered capital is not the lower the better, which also has a proportional relationship with the total investment, there are a lot of problems. It is very important for you to profoundly understand the “Registered Capital” with Chinese characteristics. Please make an interview for more details. 

IV. Registered address of a wholly foreign-owned enterprise

The registered address must be required before establishment, otherwise the company cannot be registered. If a wholly foreign-owned enterprise needs to be registered in Shanghai, the general customer will first look for an office building in Shanghai as a registered address. This address is required to be an office building, not to be a foreign-related office building, but the commercial and residential building or residential building cannot be allowed. There is no area requirement. The establishment time of the company is generally about 3 months, so the office building cannot be used within 3 months, which will waste part of the rent.

Another flexible approach is that: Our company can provide a virtual address in the suburbs, which is only used for the company establishment, it is no necessary to work in that place. Two advantages are as follows:

1. Cost saving: The cost is low, and the vacancy cost of the office building in the first three months can be saved.

2. Long-term effectiveness: The trouble of moving in the city later is avoided. 

V. Required materials for registration

Information that foreign companies need to provide:

1. The business license of foreign companies shall be notarized by the local Chinese Embassy, in duplicate.

2. The part of special enterprises shall provide the original certificate of good credit issued by the bank.

There are many other materials to be provided, usually in about 30 copies. And the specific circumstance shall depend on the actual conditions.  

VI. Registration fee of a wholly foreign-owned enterprise:

The agency service fee is USD 3,000-8,000, the price will be different due to different industries

The government fee is USD 200-1,000

The additional assessment fee for a productive enterprise is about USD 8,000. 

VII. Registration process of a wholly foreign-owned enterprise:


For more information, please contact syan@71999999.net

  • Sherry

    Registered company industry experience with more than ten years

  • Alex

    Having rich experience in foreign company registration for more than ten years. Dedicated to provide service for foreign investment、investment in China、foreign enterprise tax Planning、declaration for foreign investment enterprise permission、trademark registration and on on. Clients:shiseido(Japan)、wholly-own subsidiary of CNBM and so on.

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