How to Set up a Wholly Foreign Owned Enterprise(WFOE) in China

about china Option, Know, and Recources


In China, the original concept of a Wholly Foreign Owned Enterprise(WFOE) is to encourage manufacturing activities that were export-oriented or introduced advanced technology to Chinese industries. However, with China joining the World Trade Organization (WTO), these conditions were gradually changing. China's WFOE business entities are increasingly turning to consulting and management services, software development, and trading. Then, how to set up a WFOE in China becomes more and more important for most investors! 

Here prepared some guides for you on WFOE Set-Up Procedures:


It is the first and most important step to setup a WFOE in China. The company names' structure is governed by the Implementation Measures on Registration and Administration of Enterprise Names and the Regulations on Registration and Management of Enterprises Names. This includes Administrative area registration name, Brand, Industrial or commercial and Limited.

You must choose some suitable Chinese company names, which must contains Company Name, City name (in parentheses) and Type of company.

Then you can send an application to the local AIC to reserve your name and process your approval.


As we already know, the format of the company name includes the company name, activity, location, i.e. the city name, and finally the structure of the company. Therefore, if you do not have a facility, you should lease an office before submitting your application. You should have at least a 12-month rental period from the date you submit your company registration application. It is often not possible to transfer a company's registration from one city to another. Since your official company name must carry the name of the registered city. It is an important business to choose your company's business city.


The simplified record filing procedure applies to companies whose business scope is not restricted by the Negative list for Foreign Investment (in free trade zones) or those who are not subject to the special administrative measures for foreign investment access.


You can register and apply for a business license to the local AIC within 30 days of receiving the Approval Certificate from the Ministry of Commerce. The business license application has been simplified - the five-in-one license replaces the previous three-in-one license. The standardized national credit number simultaneously covers business license, organization code, tax registration certificate, social security registration certificate (new addition to the five-in-one license) and statistical registration certificate (new addition to the five-in-one license).

Once you get the five-in-one license, it means your company is now legally exists. However, such type of license is required by companies specializing in  certain industries such as Energy and Finance.

Welcome to visit to Check Out a Chinese Company and do better business in China!


About Us is committed to reducing the risk of companies trading with Chinese enterprises. As a developing country, China has a large market in various fields. More and more overseas enterprises are willing to conduct cross-border trade with China to gain profits. How can we be sure that the Chinese companies we're working with are trustworthy? Our detailed enterprise credit investigation reports will tell you whether the Chinese company is a trustworthy business partner or not...

Read More >


  • Verify a China

  • Verify a HongKong

  • Verify a TaiWan