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Top Investment Structures

Before launching a business in China, foreign investors must clarify their long-term and medium-term goals. Exciting corporate set-up options await. These options include Equity Joint Ventures, Cooperative Joint Ventures, Wholly foreign-owned Enterprises (WFOE), and Representative Offices (RO). Each structure offers distinct legal requirements, benefits, and perks. Here’s a quick look at Company Incorporation in China with WFOE and RO!

Our Company Incorporation in China Package

Representative Office (RO)

Location Covered :

Shenzhen, Guangzhou, Shanghai, Hangzhou, Beijing

(anymore of the above)

Activities :
No Profit generating activities in china
Legal Status :
Not an independent legal entity in china
Employees :
Cannot directly hire local staff in China
Visas :
Can Apply for Work Visa for foreign workers
Capital :
No Investment Capital Requirement
Need to Appoint Chief Representative
Require to pay tax in China

50% Advance, 50% after obtaining the
business license

Our Service Fee :

HK$15,000

It includes the following

Wholly Foreign Owned Enterprise (WFOE)

CONSULTING

Location Covered :
Shenzhen, Guangzhou, Shanghai, Hangzhou, Beijing

(anymore of the above)

Business Scope :
CONSULTING SERVICE ONLY

Legal Status :
An independent legal entity
Employees :
Can enter into employment contracts with local and foreign staff
Visas :
Can Apply Work Visa for foreign workers
Capital Requirement :
Starts From RMB150,000
Need to Appointment a legal Representative : General Manager:Director/Board of Directors
A lease agreement/office address is required

50% Advance, 50% after obtaining the business license

Our Service Fee :

HK$28,000

It includes the following

Name Registration
Apply for the Business License
Lease agreement preparation
Bank Account Opening
Tax Registration
Company Chops
Government Fees

Wholly Foreign Owned Enterprise (WFOE)

TRADING

Location Covered :
Shenzhen, Guangzhou, Shanghai, Hangzhou, Beijing

(anymore of the above)

Business Scope :
TRADING and CONSULTING

(Includes International and Domestic Sales, Import and Export Rights)

Legal Status :
An independent legal entity
Employees :
Can enter into employment contracts with local and foreign staff
Visas :
Can Apply Work Visa for foreign workers
Capital Requirement :
Starts From RMB150,000
Need to Appointment a legal Representative: General Manager:Director/Board of Directors
A lease agreement/office address is required

50% Advance, 50% after obtaining the business license

Our Service Fee :

HK$35,000

It includes the following

Name Registration
Apply for the Business License
Lease agreement preparation
Bank Account Opening
Tax Registration
Import and Export License
Company Chops
Government Fees

Wholly Foreign-Owned Enterprise

A Wholly Foreign-Owned Enterprise (WFOE) is a business in China that's fully funded and operated by foreign individuals or firms, with 100% foreign ownership—no need for Chinese partners. Even if multiple foreign partners invest together, it still qualifies as a WFOE under Chinese law, making Company Incorporation in China straightforward and giving you full control of your venture.

A WFOE is a legal entity structured as a limited liability company. Shareholders' liability is limited to their invested assets. Company Incorporation in China requires currency input or equipment contribution, with the registered capital matching the business's scale.

The Chinese government has expanded the scope of Company Business Registration in China for WFOEs, allowing them to operate in sectors like consulting, trading. However, some industries still have restrictions.

Harness Full Control with WFOEs in China!

WFOEs offer foreign investors complete control over major decisions, products, and costs. This structure not only enables strategic alignment with the parent company, but also enhances protection of intellectual property. With Business Registration in China, WFOEs empower you to operate independently, while safeguarding your assets. Register your company in China with BOOM

Registered Office Address
Some local governments allow the WFOE or RO to register using a virtual office address. However, whether you use a virtual office or a physical address, you need to prepare a lease agreement with a minimum 12-month period for registration
Registered Capital Requirement

Type of the WFOE

Estimated Capital Requirement

Consulting WFOE

USD 20,000-USD40,000

Trading WFOE

USD 35,000 -USD100,000

Manufacturing WFOE

Min USD150,000

( The New Company Law requires a company's shareholders to fully pay in their subscribed registered capital within five years of the company's establishment )
Business Scope
WFOE can only conduct business within its approved scope, which ultimately appears on the business license. One of the most important issues in the WFOE application is business scope. Any amendments to the business scope require further application and approval. The business scope of a company in China is not as broad and general as in other countries
Role of the Legal Representative
The legal representative of a company serves as the authorized legal agent of the company, with the power to act as the company’s principal representative. As the main figurehead, the legal representative must act in accordance with Chinese regulations and the articles of association.

This chosen individual is responsible for representing a company’s interests and undertakes the duties and risks of the role. Given the level of responsibility and potential liability connected to the position, careful consideration should be taken regarding who is assigned to the role.

Steps for setting up a WFOE

Pre-Registration Stage

Notarization of the statutory documents of the shareholders
Company Name search and reservation
Preparation of the lease agreement
Define the Business Scope
Appointment of the Legal Representative, Directors/ Board of Directors/ General Manage
Preparation of the Registration Documents

Registration Stage

Apply Business License
Filing of Foreign Direct Investment Report requirement by Municipal Commission of Commerce.
Assist in engraving the company chops.
Apply Import and Export license ( If applicable)
Bank Account Opening ( both the Capital and Basic Account)
Set Up Online tax system with the local tax bureau

Timeline for different types of WFOE

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Representative offices (RO)

The representative office (RO) is an office set up in China by a foreign investor (including foreign companies and economic organizations). Compared to other foreign entities in China (JVs and WFOEs), applying for an RO business license is quite simple and easy, except in some special industries such as banking, insurance, security and investment.

An RO is not a legal entity. An RO can only carry out liaison and coordination work, market research and promotion for its parent company An RO is not allowed to conduct other business activities such as signing contracts in its own name and invoicing, to name a few.