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 opened most of the industries to private or foreign investors, but there are still some special industry which is restricted or prohibited by foreign or private investors. This step is to determine whether the proposed WFOE is allowed  to operate by the Chinese government.  

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

3. Having an office or factory plant
You needs to have a qualified office or factory plant for the registration of your company.

4. Prepare document for registration
This include investor’s company certificate to be notarized in your own country and certified by Chinese embassy, Articles of Association for the Chinese company, nominating members of the company etc.

5. Company registration
Filing the documents with the company registration authority.

6. . 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 opening bank account, engraving company chop etc.

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