Wholly Foreign Owned Enterprise Registration
A Wholly Foreign Owned Enterprise (WOFE) is a limited liability company meaning that the liability is that of the shareholders
Establishing a Wholly Foreign Owned Enterprise does not require a large overhead investment it in it creates an independent company that can engage in profit-making in China
- The Wholly Foreign Owned Enterprise can be incorporated to conduct general business activities in China, specified by the scope of business.
- An Wholly Foreign Owned Enterprise allows the foreign investor complete control of the day to day business and decision-making without considering any Chinese partners
- A WOFE also can formally engage in any business activities and issue invoices to clients and receive RMB and convert profits into foreign currency and repatriate them.
- The Wholly Foreign Owned Enterprise is the most effective way of protecting trademark technical information and trade secrets and it allows total authority regarding hiring of staff, but is not required to hire Chinese staff.
- The Wholly Foreign Owned Enterprise only requires one director of foreign nationality, that could act as the investor or a Hong Kong or overseas company can be used.
Setting up a Company in China
The registration of a Wholly Foreign Owned Enterprise is simple, Wholly Foreign Owned Enterprise, abbreviated WFOE or WOFE is the first and obvious choice for foreigners looking to do business in China.So what defines a WFOE? The unique feature of a WFOE is that the entity is 100% owned and capitalized by foreign investors and operating without a local (Chinese) partner. This maintains greater control over your businesses operations, targets and profits of the company, allowing the mother company to concentrate on its own operations. WFOE is the favorable option for an overseas company that wants to permanently incorporate into mainland China.