Case Study : WFOE Setup in Mainland China
- ASC Consuluting
- 2 days ago
- 2 min read
Client Profile
An Australian entrepreneur expanding operations from Hong Kong into Mainland China, to strengthen supply chain control and enable local business operations.
Overview of the Full Expansion Strategy
This is the second step in a broader international growth roadmap. The client’s journey included:
Company formation in Hong Kong
WFOE creation in Mainland China
VAT registration in France
Integrated accounting across jurisdictions
Opening a corporate bank account in China
Implementation of Monday.com as a digital backbone
Sourcing optimization and supply chain management
Each case study shows how ASC Consulting ensured a seamless setup, operational visibility, and fiscal compliance at every stage.
Context & Objectives
The client needed:
A fully licensed Chinese company for import/export
RMB invoicing and official Chinese tax invoices (fapiaos)
Local team hiring and salary payments
A compliant structure to manage operations independently from the Hong Kong HQ
Our Intervention – ASC Consulting for his WFOE Setup in Mainland China
What about his WFOE Setup in Mainland China :
Entity Type: We advised on a Trading WFOE structure (Wholly Foreign-Owned Enterprise), suitable for the client’s business model
Company Setup: Managed the full process from name approval to business license issuance, including MOFCOM and SAIC approvals
Bank Accounts: Coordinated opening of a local RMB account and a foreign currency capital account (USD and HKD)
Customs & Tax Compliance: Registered the WFOE with Chinese customs and obtained General VAT taxpayer status to enable fapiao issuance
Trademark Protection: Guided the client through the China trademark filing to secure their brand locally
Employment Setup: Drafted labor contracts in Chinese and English, registered social contributions, and launched a compliant payroll system
Digital Tools: Synced the WFOE’s workflows with Monday.com for HR, sourcing, and finance processes
Results
The WFOE was fully registered and operational within just under three months, despite regional lockdowns and administrative slowdowns.
The bank account opening was completed remotely through our local partner, with capital injection and initial transactions processed within two weeks.
The client onboarded their first Chinese employee six weeks after license approval, including all social security and tax registrations.
Fapiaos (official VAT invoices) were successfully issued from the first month of operation, enabling both domestic and export transactions.
The brand was officially registered with CNIPA, ensuring protection in one of the client’s core markets.
All back-office processes were streamlined via Monday.com and linked to the Hong Kong HQ’s tools (Xero + shared drives), offering real-time monitoring.
The WFOE now acts as the client’s anchor in China, supporting long-term procurement, hiring, and distribution.
Suggested Next Steps
Activate cross-border agreements for service billing between China and HK
Implement VAT refund strategies for export sales
Onboard a Chinese operations manager and expand local sourcing capacity
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