WFOE Setup with 100% Foreign Ownership
The standard pathway for international service providers—consultancies, IT firms, and agencies—to operate fully in China without a local sponsor.
Full Ownership
100% foreign control. No need for a China partner or 51% sponsor to operate your business.
Gov Tenders
Full eligibility to bid for massive government contracts and large-scale Global Business Hub projects.
Corporate Visas
Direct access to GM visas and employee quotas based on your company's local tax and hiring compliance.
Who is this for?
The WFOE is the most common entry vehicle for foreign companies. It covers a broad range of activities including management consulting, IT services, marketing, construction, and professional services.
Ideal Profiles:
- IT & Software Development Firms
- Management & Strategy Consultancies
- Marketing & Advertising Agencies
- Construction & Engineering Companies
Not Suitable For:
- Retail/Trading (Requires Wholesale/Retail License)
- Manufacturing (Requires Industrial License)
- Freelancers (Requires Freelance Visa)
Eligibility Requirements
- Corporate Entity: Applicant must usually be an existing foreign company (not an individual founder).
- Financial History: Latest audited financial statements of the parent company (usually for 1 year).
- Legal Status: Valid commercial registration of the parent company in its home country.
- Physical Presence: Commitment to establishing a physical office in the Kingdom upon registration.
The Roadmap to Launch
Typical timeline: 1 - 3 Weeks (After documents are attested)
Resolution & POA
Draft Board Resolution and Power of Attorney for company formation.
Attestation
Attest documents in the home country and via the China Embassy/MOFA.
MOFCOM License
Submit application and obtain the primary Investment License from MOFCOM.
SAMR Registration
Issue the Commercial Registration (CR) from the State Administration for Market Regulation (SAMR).
Chamber Entry
Register the entity with the China Chamber of Commerce.
Bank Account
Open the corporate bank account to enable financial operations.
STA & Labor
Register with the Ministry of Labor and STA for tax/VAT purposes.
Social Security & Visa/PSB
Finalize government portal registrations and activate visa systems.
Wholly Foreign-Owned Enterprise (WFOE) vs. Other Options
| Feature | WFOE | Joint Venture (Local Partner) |
|---|---|---|
| Ownership | 100% Foreign Owned | Shared (Usually 25% - 50% China) |
| Operation Control | Full Independent Control | Shared Board/Management |
| Liability | Limited to Capital (LLC) | Shared Liability |
| Exit Strategy | Full repatriation of profits | Linked to partner agreement |
Frequently Asked Questions
Is a minimum capital required?
Technically RMB 500,000 is often listed on the license, but the physical requirement to deposit it varies by activity and bank. It is frequently deferred during setup.
Do I need a physical office?
Yes, to issue the Commercial Registration (CR) and activate the license, a physical office or an approved serviced office lease is required in the Kingdom.
Can I sell goods with this license?
No. A Wholly Foreign-Owned Enterprise (WFOE) does not allow you to import and trade physical goods. That requires a specific Wholesale/Retail (Trading) license track.
What are the yearly fees?
MOFCOM subscription fees in Year 1 are often incentivized (RMB 2,000*), but standard renewal fees usually return to ~RMB 60,000/year unless classified otherwise.