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WFOE Procedure & Document Checklist
 Wholly Foreign
Owned Enterprise
(WFOE)
(Procedure & Document Checklist)

Checklist For Foreign Businesses Who Are

Preparing To Open A WFOE in China

What Is A WFOE?

A WFOE is arguably ‘the best’ type of company for foreign investors to open in China.
In the past it was hard to have a company with no Chinese involvement at the
management level, but this is no longer the case.

While you will almost certainly be dealing constantly with Chinese clients or suppliers,
it’s not necessary to go into business with them!

The clue is in the name of this company type:

“Wholly Foreign Owned Enterprise.”

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WFOE Procedure & Document Checklist
A WFOE has the following benefits:

● 100% invested in and owned by foreigners

● Can employ local and foreign staff in China
● Can invoice in Chinese Yuan RMB
● Can be set up for your business purpose: Generally as a Manufacturing, Services,
or Trading WFOE
● Can transfer profits out of China
● Can protect IPR (Intellectual Property Rights) by registering trademarks etc
● They are treated equally to Chinese-owned enterprises

So, in fact, it is possible for foreign businesses to operate within China while retaining
complete control over their affairs.

Why Use This Checklist?

Opening a company in China can be daunting, either because of the unfamiliar

paperwork involved, the lack of knowledge about the process, or both.

One of the big issues with WFOE setup is the bureaucracy. As with most processes
in China, there is a great deal of paperwork and preparation involved, but much of
this will be very difficult for foreign businesses as it is hard to follow and in Chinese
language.

This is why Hongda have put this checklist together. We aim to make the entire process
much clearer and easier to follow for foreign investors before you even get started.

It walks you through the following in plain English:

● Which documents you require and for what

● The stages of the process

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WFOE Procedure & Document Checklist
 Documents Required To Open A WFOE in China

1. If there is an individual investor opening the WFOE:

†† Scanned copy of passport info page in colour and 1:1 ratio for ALL company shareholders
(notarized by local Chinese embassy)

Note: If shareholders can attend in person when submitting all of the documents to register the WFOE at the registry bureau
in China itself, they need only bring their passport with the info page copy. Chinese embassy notarization will not be required.

†† 1 x Legal Representative’s passport copy (if a foreigner) or ID card copy (if a Chinese
citizen) in colour and 1:1 ratio AND 1 x 2” passport photo of this person
†† 1 x Original lease rental contract for the business office (Building must allow business
rental), and lease registration certificate

Note: Renting a residential apartment to use as business premises will not be accepted. It may be possible to rent a space in a
mixed use building where some parts are residential. At an additional cost, Hongda can assist you by providing a rental contract
and registration certificate (in Shenzhen areas only) if you do not have rented business premises yet

†† Complete feasibility report (Hongda will provide this for you)

†† 1 x Company Supervisor’s passport copy (if a foreigner) or ID card copy (if a Chinese
citizen) in colour and 1:1 ratio

Note: The company supervisor cannot be the person who fills the role of legal representative. Please read this blog post to learn
more about the company roles for your WFOE.

Please note:
It’s normal to be unsure of what some of these documents are or how they should be written. When
working with Hongda to set up your WFOE, your account manager will assist you in creating, organizing,
copying, and translating these documents wherever necessary.

Additional documents may be required by the authorities on a case by case basis. These may depend
on your WFOE’s industry, your business plan, and the area in which you’re registering. Hongda will
advise you if this is the case.

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WFOE Procedure & Document Checklist
2. If there is a company opening the WFOE

†† 2 x Copies of foreign Company registration documents, notarized by the local China

Embassy (these include: certificate of incorporation, business registration certificate, and
annual return)

Note A: The mother company must nominate a person to be the legal representative of the WFOE, and provide a statement for
that. Hongda will provide a sample of this statement to you for reference sake.
Note B: If your Hong Kong company is opening a WFOE, its documents will need to be notarized by local Hong Kong law firm,
and not by the China Embassy. Hongda offer Hong Kong notarization.

†† 1 x Legal Representative’s passport copy (if a foreigner) or ID card copy (if a Chinese
citizen) in colour and 1:1 ratio AND 1 x 2” passport photo of this person
†† 1 x Original lease rental contract for the business office (Building must allow business
rental), and lease registration certificate

Note: At an additional cost, Hongda can assist you by providing a rental contract and registration certificate (in Shenzhen areas
only) if you do not have rented business premises yet.

†† 1 x Company Supervisor’s passport copy (if a foreigner) or ID card copy (if a Chinese
citizen) in colour and 1:1 ratio

Additional Requirements for Individual or Company Investors:

†† A Chinese name will have to be provided for the company, with a clear reflection of the
company’s scope. (Hongda will assist with this, and you can read this blog post to learn
more about naming your WFOE).
†† The WFOE’s Registered Capital will need to be funded from overseas, either from the
foreign investor’s or foreign company’s bank account. (Read this blog post to learn more
about registered capital).
†† Business Scope (Hongda will create this information for the registration based on your
business plan)

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WFOE Procedure & Document Checklist
 WFOE Setup Procedure

Here is the procedure that you will be guided through by your Hongda account
manager. We will offer you advice every step of the way in plain English and will make
it clear where you are in the process and if we require you to attend any of these steps.

The goal is for you to leave it to us, safe in the knowledge that we will successfully
open your WFOE as fast as possible, thereby minimizing your stress.

1. Gain Business name approval

2. Gain investment and foreign registration approval
3. Obtain company business license, (now a single license including tax
registration, organization code and more. Please refer to this blog post for
more information about your business license)
4. Obtain company ‘chops’ (stamps)
5. Open company bank account, including processing the foreign exchange
registration

Total time to open WFOE: Approx 40 working days

Your WFOE is open for business!

Please note:
Your attendance to these offices is generally not necessary for every step. Hongda will take care of ap-
plications and the submission and collection of documents for you. We will keep you appraised of the
process as it progresses.

As you can see, the time it takes to open a WFOE should take roughly 2 months. Your prompt attention
to any questions and requests we may have for you, such as supplying us promptly with the correct
documents when required, will help shorten the process.

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WFOE Procedure & Document Checklist
 Set Up Your WFOE in China The Easy Way

Like the idea of having your own company in China which you totally control, but confused
by how complex it is to set up a WFOE in China?

Hongda has been helping foreign businesses like yours set up WFOEs
since 2007, and have a 100% success rate!

This checklist may help you to prepare the documents needed and to understand the procedure,
but as you can see, the process is quite complex and involved and everything is in Chinese
language.

This is why working with Hongda’s local WFOE experts to set up your business in China helps
you to avoid many pitfalls that foreign businesses can fall foul of when opening a WFOE that
slow the process down and cost you money, such as providing incomplete documentation,
and will get your Chinese company up-and-running in the minimum possible amount of
time.

Our experts know exactly what’s needed, when, and with whom, leaving you much more time
to focus on what you’re good at: Doing business!

Don’t rush into making a decision yet. Be fully informed about what is involved in opening a
WFOE and see how easy and ‘hands-off’ Hongda can make the process for you by speaking
to our experts today!

Request a FREE ‘no-strings-attached’ consultation with our China business experts

where we’ll discuss how best to achieve your business goals in China by hitting the
button below and filling out a few details:

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WFOE Procedure & Document Checklist