Latest Insights
Wholly Foreign-Owned Enterprise in China: Part 2
April 14, 2021
The Establishment Process
The process of setting up a WFOE varies as it is dependent on the type of enterprise being established.
WFOEs are mainly classified (but not limited to) the following three types: Consulting WFOE, Manufacturing WFOE and Trading WFOE.
This establishment process can be broken down into two parts: the Pre-Licensing process and Post-Licensing process.
PRE-LICENSING PROCEDURE:
- Name Registration
- Application and reservation of the selected company name must be made to the State Office of the Administration for Industry and Commerce (SAIC).
2. Office/Facility Lease
- It is necessary to have a minimum 12-month lease for company space in the city of registration prior to applying for a WFOE incorporation.
3. Application for Approval/Record Filing
- Applicants are expected to go through a simplified record-filing process and require the approval of the Ministry of Commerce (MOFCOM) before obtaining the WFOE business licence.
4. Application for Five-in-one Business License
- This five-in-one business license from the SAIC consists of: Business license; Organisation code; Tax Registration certificate; Social security registration certificate; and Statistical registration certificate.
POST-LICENSING PROCEDURE:
- Carving chops
- All companies operating in China require a company seal or chop as an official representation of the firm, which can be obtained from the Public Security Bureau (PSB) after successful registration with the SAIC.
2. Opening 2 banks accounts
- A WFOE in China needs to have a minimum of two bank accounts: an RMB basic account, and a foreign currency capital contribution account. A WFOE can establish bank accounts with both Chinese and international banks.
3. Register for Taxes
- Once granted the business license, companies must then register for taxes at the State and Local Tax Bureau
The information provided serves as a general reference guide and is not strictly advised by Funds Partnership Asia.
References:
https://www.china-briefing.com/news/setting-wfoe-china-step-step-guide/
https://www.hongdaservice.com/blog/setting-up-a-wfoe-in-china-the-process-explained
Share This Article
Articles You May Like
As Chinese New Year approaches, many leaders in Hong Kong and Singapore’s hedge fund and asset management space are looking ahead to a fast-paced, transformative 2025.
Leading a financial institution in Hong Kong or Singapore? You’ve likely felt the mounting pressure. Between digital banking, new regulatory frameworks, and ESG requirements, it’s easy to feel overwhelmed. If you’re asking, "Where do I find the specialised talent I need for tomorrow—while managing today's demands?" you're not alone.
As the financial landscape continues to evolve in 2025, one thing is clear: hiring the right talent isn’t just about filling roles—it’s about aligning people with your organisation’s vision and long-term strategy.
Beyond the headline challenges of economic growth and geopolitics, several overlooked issues could significantly impact Hong Kong and Singapore’s financial sectors this year.
Talent is King (and Queen) in Alternatives: Insights from the 2024 EY Global Alternative Fund Survey
I recently attended the 18th EY Singapore Alternative Fund Symposium on 15 January 2025. The symposium featured various panels, fireside chats, and presentations from industry leaders, covering a wide range of topics relevant to the alternative investment sector in 2025.
As Chinese New Year approaches, many leaders in Hong Kong and Singapore’s hedge fund and asset management space are looking ahead to a fast-paced, transformative 2025.
Leading a financial institution in Hong Kong or Singapore? You’ve likely felt the mounting pressure. Between digital banking, new regulatory frameworks, and ESG requirements, it’s easy to feel overwhelmed. If you’re asking, "Where do I find the specialised talent I need for tomorrow—while managing today's demands?" you're not alone.
As the financial landscape continues to evolve in 2025, one thing is clear: hiring the right talent isn’t just about filling roles—it’s about aligning people with your organisation’s vision and long-term strategy.
Beyond the headline challenges of economic growth and geopolitics, several overlooked issues could significantly impact Hong Kong and Singapore’s financial sectors this year.
Talent is King (and Queen) in Alternatives: Insights from the 2024 EY Global Alternative Fund Survey
I recently attended the 18th EY Singapore Alternative Fund Symposium on 15 January 2025. The symposium featured various panels, fireside chats, and presentations from industry leaders, covering a wide range of topics relevant to the alternative investment sector in 2025.
Hong Kong remains a thriving hub for global financial markets, and as we move into 2025, its dynamism is undeniable. As a recruitment consultant, I’ve seen firsthand how the right talent strategies can shape success in this fast-paced industry.
The year 2024 has seen the Asian real estate market undergoing major changes, influenced by changing economic conditions, a rising focus on sustainability, and the market's shifting dynamics.
Whether it’s a boutique firm or a large MNC, I’ve seen firsthand how essential culture fit is for long-term success.
Innovations in technology, evolving patient expectations, and global challenges are driving rapid transformations in the healthcare and pharmaceutical sectors, leading private equity firms to focus on investing in businesses that will shape the future of medicine.
With RM1 billion set aside for local talent development and a whopping US$16.9 billion in investments attracted from global giants, Malaysia is positioning itself as a major player in the tech and digital space.
Capabilities
Executive Search
LEADERSHIP TRAINING & CONSULTANCY
People
Expertise
FP GLOBAL PTE. LTD. Licence Number: 22C0953