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Wholly Foreign Owned Enterprise (WFOE) is a limited liability company with 100% foreign ownership, most often set up by a single foreign investor.

Multiple foreign investors are permitted, though it would typically create more flexibility to consolidate foreign shareholdings in an offshore company. Foreign Invested Enterprises (FIEs) can be incorporated partially or fully with foreign capital. And foreign investor(s) have complete control to implement the operational, investment and management strategies. 

The liberalization of foreign investment increased the popularity of WFOEs among foreign investors, and currently, the WFOE is the most frequently used foreign investment vehicle in China.  

Steps to Incorporate a WFOE in China

Step 1

  • 1-5 days: Company name pre-registration with the SAMR.
  • Pre-approval (if required)
  • 2-3 weeks: Filing with MOFCOM and registration with SMAR
  • 1-2 weeks: Issuance of the New Business License combining the Business License, the organization code certificate, and the tax registration certificate

The WFOE now legally exists

Step 2

-> This article may also be of interest to you : Regional Headquarters – Investment Options in China

To know more, please download our legal handbooks related to Foreign investment in China…

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