WFOE, Where your Business start in Shanghai

Wholly foreign-owned enterprise registration

As a limited liability company in China, Wholly Foreign Owned Enterprise (WFOE) is 100% owned by foreign investors.

With China's economic development, many foreigners are seeking business opportunities in China. At the same time, WFOEs are increasingly being used as service providers for various consulting and management services, software development, and trade.

Today, WFOE is the most favored structure, which allows foreign investors to fully own and control, making it possible to develop internal structures and the privilege of converting local currencies for profit redistribution purposes.

As a limited liability company wholly owned by foreign investors in China, it can be registered through overseas companies, Hong Kong companies and personal passports.

General categories of WFOE

1. Manufacture of wholly foreign-owned enterprises, allowing wholly foreign-owned enterprises to only do manufacturing.

2. Consult a wholly foreign-owned enterprise, and allow a wholly foreign-owned enterprise to provide consulting and services.

3. Dealing with wholly foreign-owned enterprises, allowing wholly foreign-owned enterprises to conduct trading activities and assembly.

Advantages of WFOE

Compared with other types of enterprises, the advantages of establishing a wholly foreign-owned enterprise include but are not limited to:

1、Obtain a work residence permit, house/car/bank loan and driver's license;

2、Import and export, receiving L/C, T/T, export tax exemption;

3、Entrusted agent, listed company, customs declaration;

4、Independently and freely implement the global strategy of its parent company without considering the participation of Chinese partners;

5、Be able to formally conduct business rather than just as a representative office, be able to issue invoices to customers in RMB and collect revenue in RMB;

6、Protect intellectual property and technology;

7、It has high efficiency in operation, management and future development.

Documents required for foreign investment

1. One original copy of the application for registration of establishment of a foreign-invested enterprise;

2, the investor’s business license and opening certificate;

3. Two original bank credit certificates, indicating the investor’s credit status, which must be issued within 6 months, in both Chinese and English;

4. Resolutions of the board of directors of foreign investors;

5, a copy of the passport of the legal representative, 2 photos, or Hong Kong ID card, access pass;

6. One original copy of the venue lease contract;

7. Materials of the investor company and directors, such as the annual return of the Hong Kong company;

8. Letter of appointment of the chairman and members of the board of directors;

9. The feasibility study report and articles of association of the proposed Chinese company;

10. One original copy of the power of attorney for business registration.

Procedures for handling sole foreign investment

Reception—"Prepare name and name inquiry form—"Handle name inquiry and prepare the follow-up for charter approval—"Apply for charter approval materials—"Receive approval—"Apply pre-assigned code—"Print approval certificate—"Prepare business registration procedures—"Submit for industry and commerce Registration procedures—"Get business license for industry and commerce"