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Wholly Foreign-Owned Enterprise

WFOE Registration in China

A WFOE lets a foreign investor own 100% of a Chinese limited liability company — able to invoice customers, hire staff, sign contracts and repatriate profits. It is the most common structure for doing business in China.

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What is a WFOE?

A Wholly Foreign-Owned Enterprise (WFOE, also written WFOE/WFOE) is a limited liability company incorporated in China that is fully owned by foreign investors — individuals or overseas companies. It is a separate legal entity with limited liability.

Unlike a representative office, a WFOE can carry out for-profit activities: sign contracts, issue official Chinese invoices (fapiao), hire employees directly, import and export, and transfer profits back to the overseas shareholder after tax.

Common WFOE types

  • Consulting / services WFOE
  • Trading / import-export WFOE
  • Technology / SaaS WFOE
  • Manufacturing WFOE (with approvals)

Requirements

Requirements vary by city and industry, but generally include:

  • A foreign shareholder (individual or company)
  • A legal representative and supervisor
  • A registered business address in China
  • A defined business scope and registered capital
  • Notarized / legalized identity or company documents
Registered capital: China uses a subscribed-capital system — in most cases you commit an amount in the articles of association rather than paying it all up front. We advise a sensible figure for your activity.

Timeline & cost

A WFOE usually takes about 4 to 8 weeks from document submission to business license, plus extra time for the bank account. Our formation packages start from $1,499; final cost depends on city, industry and add-ons.

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WFOE — Common Questions

Yes. Through a Wholly Foreign-Owned Enterprise (WFOE), a foreign individual or company can hold 100% of the equity in most industries. A small number of sectors remain restricted and require a Chinese partner or a joint venture.
A WFOE can conduct business, invoice customers, hire staff and make a profit. A representative office is limited to liaison and market research and cannot earn revenue in China.
Generally no. Under the subscribed-capital system you commit an amount in the company's articles of association and contribute it on the agreed schedule. Some industries have minimums or paid-in requirements.
In most cases, yes. Registration can usually be completed with notarized and legalized documents without travelling to China. Some banks may require the legal representative to appear in person to open the corporate account.

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