The Wholly Foreign-Owned Enterprise (WFOE) is a limited liability company (liability is limited to the amount of the registered capital) that is 100% owned by foreign investors.

WFOEs were originally conceived to encourage manufacturing activities that were either oriented towards exporting products or that introduced advanced technology into China. However, with China's entry into the WTO, these conditions were gradually abolished and the WOFE is increasingly being used for service providers such as a variety of consulting and management services, software development, trading enterprises, etc.

The process of applying for approval of a WFOE can be complicated. Preparing the WFOE application, leasing space and laying other groundwork can take several months.

 Location decision

Location choice is always among those most frequently asked questions. In an international context, the determinants of business location include factor costs, regional infrastructure, local skills, government policies, etc. We can assist in screening and evaluating options and finding best location according to client’s criteria.

Office lease / plant construction

It is required by governmental authorities that enterprise should have a proper place for running business. It can be leased or bought by signing lease/transfer agreement with landlord.

Land use right can be transferred, leased or put into mortgage. Foreign invested enterprises (FIEs) are able to acquire land-use rights through application, contracts, bids or auctions. Bureau of State land and Resources is responsible for approval of the land use-right transfer.

Plant construction should be approved by the Construction Committee.

Business registration

Accounting & tax services

Global assignment
If you require more information on any particular issue relating to investment in China please send us an email.