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Address: Rm1902, Bldg 17, Jianwai SOHO West, No. 39 Dongsanhuan Rd M, Chaoyang Dist., Beijing

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The advantages of Setting up a WFOE in China

Update Date:2021-3-26 15:43:53 Source:BeiJing Tannet Views:1188

Accompanied with Chinas deepening reform and opening-up across the board, a wholly Foreign-owned Enterprise (WFOE), a business entity formed in China entirely controlled by foreign investors, has become the preferred entry mode to access the Chinese market. The differences in the business structure among the WFOE, Representative Office, JV, or the Branch are as follows:

Business Structure

Nature of Business

Business Operation


Other Requirements


Distinct legal entity

Can trade within China

Can hire local staff directly



Extension of foreign entity

Cannot trade at all

Must use employment agency and limited to four foreign employees

Must have a registered office


Distinct legal entity

Can trade within China

Can hire local staff directly

Minimum 100,000 capital


Extension of foreign entity

Can trade within China

Can hire local staff directly but limited to three local employees

Not allowed to import/export

Compared with other business entry modes, the WFOE allows foreign investors to have 100% control over its business equity. On top of that, foreign investors enjoy independence regarding HR, operational management, and strategic planning. WFOEs are also allowed to conduct a broad range of business activities within the specific business scope in China. Moreover, a WFOE is allowed to issue fapiao’ official invoices to increase your credibility in transactions and increase the rate of foreign staff work permit applications in the future. Last but not least, a WFOE can hire both foreigners and local Chinese directly without the limitation on the number of foreign employees.

Tannet Group Limited was established in Hong Kong by Carlson Chan in 1999. Over 22 years of development, Tannet has assisted international investors through the whole business process. With the help of tax and accounting specialists, we are here to help you navigate China's legal and regulatory system.


1.Beijing/Shanghai/Hongkong/Guangzhou/Shenzhen/Dongguan/Hainan/Quanzhou/Yiwu/Xiamen/Chengdu/Nanchang/Horgos WFOE Registration

2. China Work Permit Application & Z Visa

3. Intellectual Property-Brand/Trademark/Copyright/Patent Registration

4. China Payroll Compliance & Tax Service

5. One-Stop Service-China Services, China Investment, China Solutions


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Address: Rm 1902, Bldg 17, Jianwai SOHO West, No. 39 Dongsanhuan Rd, Chaoyang Dist, Beijing, China

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