Setting up a WFOE in China can be beneficial, but it isn’t always necessary. The following section discusses the different scenarios that may lead to a decision to set up a WFOE.
PTL Group specializes in company registration in China. We make sure that China company registration is done right, because doing so will help us focus on the real goal: long-term WFOE management. To help our clients, we provide extensive operational support for registered entities. This is where our knowledge and expertise really make a difference.
We hope you find the following information useful.
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 2021
Regulations in China change relatively frequently. For the most up-to-date regulations, please check in with us.