WFOE White Paper

Learn everything there is to know about the WFOE registration process and become Chinable!

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What is a WFOE?

A Wholly Foreign-Owned Enterprise (WFOE) is a Chinese Limited Liability Company (LLC), which is funded
exclusively by a foreign investor’s capital.

The establishment of a WFOE in China is subject to various laws and regulations. For some industries it is even prohibited for foreigners to set up a WFOE in China. To provide a better understanding on what is possible and what is required regarding WFOEs in China, we have prepared an extensive white paper to address the most important topics and considerations to take in mind when establishing a WFOE in China.

The parent structure plays an important role in the lead-time and complexity of setting up a WFOE. The easiest and fastest is registering through a Hong Kong Limited. Complicated parent structures abroad are the hardest to use when setting up a WFOE.

The location where you register the WFOE in China determines several important aspects. It determines the height of minimum registered capital, the steps you take and the lead-time of the WFOE registration. Keep it into account when setting up.

A crucial component of setting up a WFOE is the registered capital. It is the amount of money you promise to invest in your organization. Always determine your registered capital based on your plans, not on the minimum allowed amount.

Certain industries or WFOE’s require extra licenses. For instance, If you are planning on trading outside of China, you require to have an import/export license. Acquiring this license is an extra step in the registration procedure, which will cost extra time.

Considerations Before Registaration

1421 Consulting Group is assisting our law firm in registering a representative office and WFOE in Beijing. With their experience in this field they have provided us a very clear plan and offer strong support in our preparation for the registration process.

Paolo Beconcini

Managing Partner, CBM LLP

1421 Consulting Group helped us to successfully register our company in Shenzhen. This was done professionally and we decided to continue with 1421. They currently assist us with our accounting, hosting our employees and managing some of our activities.

Cos Vrins

CEO, RIDAM

About 1421 Consulting Group

1421 Consulting Group is specialized in supporting Western companies setting up and growing their business in China. Via our one-stop service model, we are able to balance the initial investment needed to discover opportunities and open the Chinese market with expected returns of investment. We use our strong knowledge and network for assisting companies in China. The combination of our Western colleagues with vast experience in China, and our Chinese colleagues with strong understanding of the Western needs and desires, makes us able to assist you in the best possible way.

Since the first year of our existence, 1421 Consulting group has provided companies with support in registering for a WFOE in several locations in China.

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