WOFE in manland china

I am looking for some advice on setting up a business in mainland China.

I specifically am looking for information on a WOFE (wholly owned foreign enterprise)


I spend about two and a half million american dollars per year buying product and this is growing ever month. I buy from various mainland factories.

I have asked a Chinese solicitor if it would be worth setting up a company in China to take advantage of getting back tax and to let me now if there would be any other advantages. Unfortunately the answer is alway vague.

Can anyone please tell me what the system of taxation in China and does anyone know if it would be worth my while pursuing this.

Can anyone give me the name of a reputable firm of Accountants/Lawyers who could advise

What advantages do you expect to enjoy from having a WOFE? None spring to mind, though a lot of additional hassles do..

I had hoped that one could claim back tax (VAT) on products bought locally also regularise one's business in China ....(I have unoffical employees here) You seem to know the hassel factor can u expand.

Hi there Irishman, i personally established a WOFE around 2.5 years ago now and it was much easier then i was led to believe. Took around 3months from memory.


Although once you have it up and running, you need to maintain the company alot more then you would in any other western country. For example: a lot more business licenses need to be applied for etc.


All in all i was able to do it for less then USD$50,000 (fees) and the minimum capital investment i had to make was USD$100,000 over 12months, intially deposit USD$50,000 into my company account in China and then get an audit company to verify it was there and that i had put it there personally. THis money is then free for you to spend on whatever you want (business related of course), and any assetts you buy can also be regarded for the final USD$50,000 investment which needs to be made within 1 year of establishment.


I consulted a friend of a friend in China to set it up for me and that person still consults for me from time to time. Let me know if you need any further info, or if you would like to be introduced to the same person.


I am setup in Shenzhen, i live in HK and travel there every day, this is one thing to consider also, i originally setup the company remotely and travelled over once every few months, now business is so good i have had to relocate. I do put my success largely down to setting up the WOFE as i am no longer just another company outsourcing to china, i have staff on the ground employed who add real value to what we export.


Cheers