WFOE in China: What It Is and How to Register as a Foreigner in 2025

In this guide, Asomerit Consulting explains everything you need to know—steps and required documents—so you can navigate the process with ease.

Introduction

Setting up a business in China is an exciting yet challenging step for many foreign entrepreneurs. Among the various structures available, the Wholly Foreign-Owned Enterprise (WFOE) has remained one of the most popular. It allows you to keep full ownership, make independent decisions, and directly control your profits—advantages that Joint Ventures or Representative Offices cannot offer.

This guide will explain what a WFOE is, how it differs from other business entities in China, and the key steps to register one in China. You will also find tips to avoid common mistakes and ensure your setup process is efficient and compliant.

Section 1: What is a WFOE in China?

The full name of a WFOE is a Wholly-Foreign Owned Enterprise, a limited liability company in China that is entirely owned by foreign individuals or entities. It is legally recognized under Chinese law and allows you to conduct profit-making activities without involving a Chinese partner.

One of its biggest appeals is operational independence. You can hire employees directly, manage your business scope freely within legal boundaries, and repatriate profits after taxes. This flexibility makes it especially attractive for foreign businesses planning long-term operations in China.

Section 2: Comparing WFOE, JV, and RO

Apart from WFOEs, you may have also heard about Joint Ventures (JVs) and Representative Offices (ROs) in China. Despite that they all have their advantages when doing business in China, a WFOE remains the most common and popular choice for foreign investors seek to establish their business presences in China due to its simple setup process and flexibility. Asomerit Consulting summarizes the comparison between a WFOE, JV, and RO.

Table 1. Comparison between a WFOE, JV, and RO in China

Section 3: Step-by-Step Process to Register a WFOE in China (2025)

Step 1: Company Name Pre-approval and Reservation

The first thing to set up your WFOE in China is to give your company a name. You need to submit several potential Chinese business names to the local Administration for Market Regulation (AMR). The name should be entirely in Chinese (no foreign languages mixed) and must follow China’s naming rules, which include a location, brand name, industry descriptor, and “有限公司” (Limited Company). The general format of a qualified name for a WFOE include:

1. Administrative division + name (brand) + industry + organization type"

        Example: 北京星巴克咖啡有限公司   (Beijing Starbucks Coffee Co., Ltd.)

2. Name (brand) + (administrative division) + industry + organization type

        Example: 苹果研发（北京）有限公司   (Apple Research and Development (Beijing) Co., Ltd.)

(The brand names above are used for illustrative purposes only and remain the property of their respective owners.)

Name approval usually takes 1–3 working days if there are no conflicts, though this may vary by city. Once approved, the name will be reserved for up to six months from the date of approval, with one possible extension of another six months upon application. If you do not complete the WFOE registration within this period, the name will be released and made available to others.

Step 2: Document Preparation for WFOE Registration

Once your company name has been approved and reserved, the next step is to prepare the WFOE registration documents for submission to the Administration for Market Regulation (AMR). A complete and accurate file will speed up the approval process and prevent unnecessary delays.

China WFOE Registration Checklist: 

• Articles of Association (AOA): This document outlines the WFOE’s business purpose, registered capital, shareholders, shareholding ratios, and governance structure. It must be prepared in Chinese, signed by all investors, and fully compliant with Chinese corporate laws. The AOA serves as the legal foundation of your WFOE in China.
• Shareholder Identification Documents: For individual shareholders, a notarized and legalized copy of the passport is required. For corporate shareholders, a notarized and legalized copy of the overseas company’s Certificate of Incorporation (or business license) must be provided. These documents confirm the legal identity and eligibility of the WFOE’s investors.
• Legal Representative’s Identification: The legal representative is the individual with ultimate legal authority for the WFOE in China. For foreign nationals, a notarized and legalized passport copy is required; for Chinese nationals, a copy of their national ID card will suffice. An appointment letter signed by all shareholders is typically required.
• Registered Address Proof: This is the address that will appear on your WFOE Business License, which can be different from your actual operational office. A valid commercial lease agreement and the property ownership certificate are usually required. If leasing a physical office is costly, many investors choose a registered address service in China, such as those provided by Asomerit Consulting, to meet compliance requirements cost-effectively.

In addition, depending on the city and your main business activities, you may also need to provide:

• Feasibility Study Report — outlining your business plan, operational model, and projected benefits to the local economy.
• Bank Reference Letter — issued by your bank to confirm the investor’s financial standing.

Step 3: Business License Application

Once all required documents are prepared, you can submit your WFOE registration application to the local Administration for Market Regulation (AMR) to apply for a WFOE business license in China. During this process, the AMR will review your application, verify the authenticity of your documents, and ensure that your company name, business scope, and registered capital meet Chinese regulations.

The approval timeline varies by location but typically takes 5–10 working days if all documents are in order. Once approved, you will receive your Business License (营业执照) — the official proof that your WFOE is legally established and authorized to operate in China.

Step 4: Tax Registration

After obtaining your Business License, your WFOE must register with the local tax bureau before starting operations. This step is crucial for compliance with China’s tax laws and includes:

• Applying for a taxpayer identification number
• Setting up electronic tax filing accounts
• Configuring fapiao (official tax invoice) issuance

China operates under a self-declaration tax system, meaning your company must file tax returns monthly or quarterly depending on your business activities. Asomerit Consulting recommends you to outsource the bookkeeping to us to ensure accurate reporting and avoid penalties. For more details on ongoing compliance, see Asomerit Consulting's China bookkeeping service page.

Step 5: Corporate Bank Account Opening

After successfully obtaining the Business License, a WFOE in China must open a corporate bank account to handle business transactions, receive payments, and pay employees. Foreign-owned companies often open two types of accounts:

• RMB Basic Account — for daily operations and payment of taxes.
• Foreign Currency Capital Account — for injecting registered capital and handling foreign exchange*.

As the China Company Law has been modified in 2014, all registered capitals need to be fully paid within 5 years since registration. Consequently, you need to transfer the registered capital from the overseas personal bank account to your China company's foreign currency capital account within this given period.

Step 6: China Work Visa (Z-visa) Application

If you or your foreign employees plan to work in China for the WFOE, you must apply for a work permit and Z visa. The application involves two main steps:

• Work Permit Notice — issued by the local Human Resources and Social Security Bureau after reviewing your qualifications.
• Z Visa & Residence Permit — allowing you to legally work and reside in China.

You can learn more about the full process in our China work visa application service page.

Conclusion

By completing these six steps — from company name approval to visa application — your WFOE in China will be fully established and legally ready to operate.

While the process can seem complex, working with a professional WFOE registration agent like Asomerit Consulting ensures compliance, efficiency, and peace of mind. Contact Asomerit Consulting today for a guided WFOE registration experience to operate in China!