The basic steps for forming a wholly-foreign-owned-enterprise (WFOE) in China typically consist of the following:

1. Market entry research

Each country has its own special regulated industries. China has openned most of the industies to pravite or foreign investors, but there are still some speical industry which is restricted or prohibited by foreign or provite investors. This step is to determe whether the proposed WFOE is allowed  to operate by the Chinese government.  

2.  Pre-registration of the company name
You need to creat a Chinese name for the proposed WFOE and register it with AIC authority.

3. Approval procedure
Chinese government approval for the project. In China, unlike in most countries with which Western companies tend to be familiar, approval of the project by the relevant government authority is an integral part of the incorporation process. If the project is not approved, no incorporation is permitted. The two are inextricably linked. 

a. Articles of Association. This document will set out all of the details of management and capitalization of the company. Nothing can be left for future determination; all basic company and project issues must be determined in advance and incorporated in the Articles. This includes directors, local management, local address, special rules on scope of authority of local managers, company address, and registered capital.

b. Feasibility Study. The project will not be approved unless the local authorities are convinced it is feasible. This usually requires a basic first year business plan and budget. We typically use the client produced business plan and budget to draft up the feasibility study (in Chinese) that will satisfy the requirements of the Chinese approval authority.

c. Leases: An agreement for all required leases must be provided. This includes office space lease and warehouse/factory space lease.   It is customary in China to pay rent one year in advance and this must be taken into account in planning a budget because the governmental authorities will be expecting this.

d.  b) Business Certificate of the investor

e. Bank Letter attesting to sound banking relationship and account status of the investor;

All of the above documents must be prepared in Chinese. It usually takes two to five months for governmental approval, depending on the location of the project and its size and business scope.

4. Company registration
After the approval of the incorporation, the nest step is going to AIC for company registration. In Beijing, it takes five working day to finish this procedure upon the completion of the document.

5. Follow-up procedure
After get the business certificate of your WOFE, you need to go through follow up procedure to finish the company set up. Such procedure include tax registration, opening bank account, engraving company chop etc.

All the above work could be assisted by a local lawyer which will facilite the processs.