Who a WFOE suits
- Trading, consulting, technical services, software, design, equipment maintenance — sectors outside the negative list
- Investors who need a Chinese entity to hold a trademark, apply for import-export rights or obtain a sector licence
- Not suitable where the intended business sits inside a restricted or prohibited entry
- Check first for education, healthcare, financial services and value-added telecoms — these need sector approval before registration
Requirements at a glance
| Item | Requirement | Note |
|---|---|---|
| Shareholder | Foreign company or individual, one is sufficient | Corporate documents must be notarised and legalised |
| Legal representative | Chairman, executive director or manager | May be a foreign national; may hold no shares |
| Directors / supervisor | Board or single executive director; one supervisor permitted | 2024 Company Law permits a single supervisor |
| Registered capital | Set in the articles, no general minimum | Paid up within five years of establishment |
| Premises | Real address, lease plus ownership evidence | Must be able to receive official mail |
| Business scope | Catalogue wording, main activity first | Licensed items require approval before trading |
Registration before work permit
A WFOE cannot obtain a work permit for its foreign owner until the company itself exists, is tax-registered, and can act as an employer. Attempting the permit first is the single most common cause of delay.
- Establish the WFOELicence, chops and tax registration completed.
- Open the bank accountBasic account plus capital account; some capital is usually injected before permit filing.
- Work permit notificationEmployer files online; approval supports the Z visa application abroad.
- Enter and collect the permitMedical check, then the foreigner work permit card.
- Residence permitWork-type residence permit at exit-entry, aligned to the permit's validity.
Capital, banking and repatriation
- Capital is injected in the currency stated in the articles, matching the registered amount and schedule
- Non-cash contributions (equipment, IP) require valuation and transfer formalities
- Dividends may be repatriated after audit confirms distributable profits and taxes are settled
- Cross-border payments are checked against contracts and invoices by the bank
- Failure to pay up on schedule affects shareholder liability, dividends and equity transfers
Frequently asked questions
Can a foreigner own 100% of a WFOE in Foshan?
Yes, provided the business scope falls outside the negative list. Inside it, caps apply. Assess against the specific list entry for your activities, not the broad industry heading.
Does the legal representative have to be Chinese?
No. A foreign national can act as legal representative as chairman, executive director or manager. Some banks and filing systems will require verifiable identity and contact details for that person.
Can registered capital stay unpaid?
Subscribed capital is a payment obligation. Since 1 July 2024, new limited liability companies must pay in subscribed capital within five years. Unpaid capital affects liability, dividend rights and the ability to transfer equity.
How long does WFOE registration take?
Document preparation and notarisation abroad usually dominate the timeline. Once filed with complete documents, registration is typically a matter of working days; tax, FX and bank steps follow, and the bank is often the slowest.
Is it hard to open a bank account for a WFOE?
It is more demanding than for a domestic company. Banks look at premises, business substance, beneficial ownership and source of funds. A coherent set of contracts, a lease, and a written business description materially improves the outcome.
Tell us the situation first, then we talk options
Send us your entity type, location and what you need done. We will set out the documents required, which steps need you in person, and a realistic timeline.
Where we workFoshan · Guangdong · China
We serve all five districts of Foshan, and act for clients elsewhere in Guangdong and overseas on the same process.
This page reflects publicly available information as of October 2026. The competent authority's latest requirements prevail.
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