What is a WFO E-commerce Business ?
WFO E-commerce business stands for Wholly Foreign Owned E-commerce business. Either a foreign individual or corporate wholly owned and registered entity in China. In fact, WFOE is a common business setup by which non-Chinese nationals or non-Chinese corporate entities, when they need to incorporate a foreign-owned limited liability company in Mainland China. Indeed, many more expats are looking into the China consumer market for the past 2 years. Admittedly, comparing with a traditional retail shop business, it is much more cost effective and easier to manage when it is a e-commerce based. Additionally, with all the travel limits, e-commerce business allows owners to be running the business in any part of the world.
In 2020, Singles Day shopping topped a new record of RMB498.3 billion of sales in 1 day. A huge increase from last year, with reasons to the pandemic, more consumers are familiar with shopping online as well as the special offers and bargain you get from the online shops. During the sales event’s peak period, there are around 583,000 orders placed each seconds. Furthermore, from Midnight onwards there were hundreds of millions of shoppers logging on to the receive extra discounts.
How to setup a WFO E-commerce Business in China?
Recently, many of our clients are asking how they can setup a e-commerce business. They noticed many e-commerce are setup via platforms like Taobao and Alibaba. Business owners also need to setup a China payment gateway accounts to cater the Chinese market. Herein below, we are listing out the steps for setup process on a Wholly Foreign Owned Enterprise
- Check Company Name if usable or not
- Check and sign agreement to lease office space
- Translation of director / Shareholder names with notarised by CHINA APPROVED PUBLIC NATARY
- Incorporation (Obtain the 5-in-1 business license)
- Company Bank Account Opening
- Personal Bank Account Opening
- Setup WECHAT China Company Account
- Register for Website displayed publicly in China with the China WFOE Certificate.
- Register for Taobao, Alibaba, JD, etc…
For further information, please contact us.
You may want to read: WHAT IS THE REQUIREMENT FOR A WFOE REGISTERED OFFICE?