Planning a WFOE in China? Don't get caught by hidden fees. Read Asomerit’s transparent guide to China company registration costs, maintenance, and visa requirements.
From WFOE Registration to Visa Self-Sponsorship: The Foundation for Long-Term Residency
For foreign entrepreneurs Doing Business in China, the Wholly Foreign-Owned Enterprise (WFOE) is the preferred vehicle because it allows 100% foreign ownership and control. However, many founders fall into a common trap: believing that once they hold a Business License, their long-term residency is automatically solved.
In reality, WFOE Registration is just the first step. If you plan to live in China and personally manage your company, the real challenge lies in structuring this company to serve as a qualified sponsor for your own Work Visa—effectively achieving "Self-Sponsorship."
(For a detailed breakdown of the setup process, such as name approval and document signing, please read our guide: [WFOE in China: What It Is and How to Register as a Foreigner in 2025])
It must be emphasized: Visa planning does not begin after the company is established; it runs through the entire setup process.
If your ultimate goal is a successful China work visa application with a WFOE, you must consider future visa compliance during the initial stages—such as name approval, drafting the Articles of Association, and determining registered capital—rather than trying to "fix" the structure after the company is formed.
A Core Myth: Is There an "Entrepreneur Visa in China"?
During consultations, we are frequently asked how to apply for the Entrepreneur visa in China.
Strictly speaking, China's current visa system does not have a standalone "Entrepreneur Visa" category for standard small business owners. In legal practice, what is often called an "Entrepreneur Visa" is actually the standard China Work Visa (Z Visa) followed by a Work-Type Residence Permit.
Under this model, you hold a dual identity.
- Legally, you are the investor of the company;
- For the visa application, you are a senior executive (e.g., Executive Director or General Manager) hired by your WFOE. You are effectively hiring yourself, and you must meet the employment standards set by the Bureau of Foreign Experts Affairs.
Two Core Pathways for WFOE Work Visa Application
When applying for a work permit through your own WFOE, you generally need to qualify under one of two pathways. Asomerit will recommend the safest route based on your background:
Path 1: The "Executive/Professional" Path (Most Common)
This is the preferred route for founders of consulting, tech, or asset-light companies. You apply as a senior executive, typically classifying as "Tier B Talent" under the work permit system.
- Education: Typically requires a Bachelor’s degree or higher.
- Experience: Requires at least two years of relevant post-graduation work experience.
- Advantage: This path focuses on personal qualifications and does not impose a mandatory high threshold for paid-in Registered Capital.
Path 2: The "Investor" Path
If you do not meet the degree or experience requirements (e.g., young entrepreneurs), you may attempt to apply as an "Investor." However, please note that the threshold for this path is rising.
- Capital Threshold: This path usually has strict requirements for paid-in capital and tax contributions.
- Regional Variance: Policies vary significantly by city. For example, in popular hubs like Suzhou, authorities may require an actual investment of over 1,000,000 RMB and a shareholding of at least 30%. Therefore, registering a "shell company" is not enough to secure a visa through this route.
Work Visa Compliance & Maintenance: Salary, Social Security, and Tax
Many entrepreneurs ask: "Since it's my own company, can I pay myself a low salary of 3,000–5,000 RMB to save costs?"
Although the legal requirement for the employee's salary is "above the local minimum social average", a salary around 3000 - 5000 is still not recommended (even if it is higher than the local standard). Obtaining the visa is just the start; maintaining it is crucial. To ensure your Residence Permit can be successfully renewed, you must maintain a compliant employment relationship:
- Reasonable Salary Level: Your declared salary must match the management level of a General Manager or Director. An excessively low salary (below the local average) will be deemed unreasonable, leading to rejection during visa renewal.
- Social Security Obligations: Once an employment relationship is established with your WFOE, the company is obligated to contribute to Social Security. While enforcement for foreigners varies by city, the overall compliance trend is moving toward mandatory contribution.
- Individual Income Tax (IIT): This is the single most important piece of evidence for visa officers to verify that you are "genuinely working in China." No tax record usually means no visa renewal.
Other Common Questions (FAQ)
Q: I won't be working in China long-term. Do I need a Work Visa?
A: If you only visit occasionally for meetings or trade shows, a Business (M) Visa is usually sufficient. However, if you serve as the Legal Representative and need to sign legal documents, manage teams, or conduct daily operations while physically inside China for extended periods, working on an M Visa is considered illegal employment. You must obtain a Work Visa.
Q: Do I need a Work Visa to open a bank account?
A: For a Corporate Account, the Legal Representative usually does not strictly require a Work Visa. However, some banks with stricter compliance policies may require you to have a Residence Permit before opening a corporate account. We will consider these banking requirements during the company setup phase and provide you with the best solution for your situation.
Future Trends: Work Visa and Its Increasing Difficulty
We must remind clients that as China's immigration management system improves, the era of registering a "shell WFOE" just to get a visa is over. Future applications will face increasing scrutiny:
- Operational Substance: Authorities will more strictly verify whether the company has a real physical office address and genuine business transaction flows.
- Local Employment: While not explicitly written in law yet, we are observing a trend: if a company operates for years with only one foreign employee and no Chinese staff or local social security contributions, its renewal will face significant pressure. Future operators may need to hire local staff to prove their contribution to the local economy.
Conclusion: Investing in Clarity
In the journey of starting a business in China, WFOE Registration is merely building the skeleton, while compliant visa planning is what provides the lifeblood.
If you hope to secure long-term, stable residency through your WFOE, you must introduce a professional visa perspective at the very beginning of the setup process, rather than waiting until the end to fix problems.
Do you want to know how to open your own WFOE in 2026 and apply for a work visa for actual operations? Contact Asomerit today, and we will provide you with detailed consultation and comprehensive solutions!
