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What Is a WFOE? Wholly Foreign-Owned Enterprise in China

A Wholly Foreign-Owned Enterprise (WFOE) is the most common business structure for foreign investors in China — a limited liability company wholly owned by foreign shareholders with full operational control.

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Definition

A WFOE (also called WOFE or外商独资企业) is a Chinese limited liability company registered under Chinese law with 100% foreign ownership. It can conduct business operations, issue invoices, hire employees, and repatriate profits — unlike a representative office which has restricted activities.

At a glance

  • Limited liability: Shareholders liable only to the extent of registered capital
  • Full control: No Chinese partner required
  • Operational scope: Must operate within approved business scope
  • Capital requirement: Minimum varies by industry and location (typically RMB 500K–10M)
  • Timeline: 4–8 weeks for registration

Registration Steps

  1. Name pre-approval with AMR
  2. File incorporation documents
  3. Obtain business license
  4. Carve company seal (public security bureau)
  5. Tax registration
  6. Foreign exchange registration (SAFE)
  7. Open bank accounts (RMB and foreign currency)
  8. Social insurance registration

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