How to expand your business to China by setting up Wholly Foreign Owned Enterprise.
A Wholly Foreign Owned Enterprise (WFOE) can be incorporated to conduct general business activities in China
It gives foreign investor complete control of the day to day business and decision-making without any compulsory involvement from a Chinese partner.
A Wholly Foreign Owned Enterprise (WFOE) is the quickest method to get a business license in China. Once incorporated, companies can begin to conduct general business activities in China. Find out how China company registration can work for your business.
What is a WOFE?
Under Chinese law, a Wholly Foreign Owned Enterprise is a limited liability company that is fully owned and capitalized by foreign investors (You) and operated without a local (Chinese) partner.
This provides you with greater control over your business’s operations, revenue and profit targets.
Since it is a separate legal entity, it also limits your liability to the contributions made to the registered capital of the WOFE.
A WOFE is a favorable option for a Foreign company that wants to enter the Chinese market.
Establishing a Wholly Foreign Owned Enterprise does not require a large overhead investment.
- A WOFE can be incorporated to conduct general business activities in China
- It gives foreign investor complete control of the day to day business and decision-making without any compulsory involvement from a Chinese partner.
- It can engage in any business activities, issue invoices to clients, receive RMBs, convert profits into foreign currency, and repatriate them.
- It is the most effective way of protecting trademark technical information and trade secrets.
- It provides complete authority regarding the hiring of staff and does not require you to hire Chinese staff.
- A Wholly Foreign Owned Enterprise requires either one director of foreign nationality or a holding company located in Hong Kong to act as an investor.