What is the process of converting a Representative Office into a Wholly Foreign-Owned Enterprise?

he process of converting a Representative Office (RO) into a Wholly Foreign-Owned Enterprise (WFOE) is a misnomer. There is no direct process, but rather there are two separate processes—de-registering a RO and establishing a WFOE. De-registration of the RO requires tax closure in the local and state tax bureau, cancellation of bank accounts, and so forth. The entire process can take anywhere from six months to more than two years to complete. Therefore, it is a wise business decision to begin registering the WFOE while simultaneously de-registering the RO. Registering the WFOE has pre-registration and post-registration processes. Pre-registration requires certain documentation such as business licenses and bank statements. If pre-registration is successful, the business should be issued an approval certificate in which the newly created WFOE can then proceed with post-registration to perform a number of formal registrations at various Chinese government entities. The entirety of the registration process is rather lengthy as it can take four to six months to complete, and in some cases even longer.