The Right Time to Set Up a WFOE

Last updated: Feb 2022
Regulations Guide to WFOE Establishment, Registration & Liquidation

Setting up a WFOE in China can be beneficial, but it isn’t always necessary. PTL Group specializes in company registration in China. To help our clients, we provide extensive operational support for registered entities. This is where our knowledge and expertise really make a difference.

The Right Time to Set Up a WFOE

You do not need a WFOE to:

  • Employ local employees
  • Employ foreigners and obtain visas and work permits
  • Sign a contract or obtain office space
  • Manage HR: salaries, social benefits, expenses, etc.
  • Manage finance flow
  • Import products into China
  • Claim an import VAT refund
  • Store products in a warehouse or logistics center
  • Sell products and issue RMB VAT invoices (Chinese: Fapiao)
  • Set up a Chinese website
  • Register a WeChat account
  • Set up an E-commerce store

Setting up a WFOE in China: The when & why

  • Stable market & income
  • You employ several loyal employees that have proven themselves professionally
  • Your business activity requires you to present your own license
  • Your products require a complicated license
  • You want to set up an E-commerce structure that requires you to own an ICP

Last updated: February 2022

At PTL Group, we specialize in registering and managing foreign-owned entities in China. Get in touch today and let us support your China operations.