The China WFOE
A China WFOE is arguably ‘the best’ type of company for foreign businesses to open in China. The less informed will tell you that it’s impossible to run a company in China without input and interference from a Chinese partner or indeed the government there, however, this simply is not the case.
While you will almost certainly be dealing constantly with Chinese clients, customers, or suppliers, it’s not necessary to go into business with them! >>TWEET THIS<<
A WFOE (Wholly Foreign-Owned Enterprise) is a privately held limited liability company in China in which all the shareholders are foreign. It is the most favored investment vehicle as it gives full autonomy and control to the foreign parent company. So, in fact, it is possible for foreign businesses to operate within China while retaining complete control over their affairs.
There are significant differences in the setup procedures, cost and working field between the different types of WFOE setups and certain criteria needs to be met for the different types of WFOE’s. One of the big issues with WFOE setup is the bureaucracy involved. As with most processes in China, there is a great deal of paperwork and preparation involved, but much of this will be very difficult for foreign businesses as it is both hard to follow and in Chinese. This is why Hongda have put this checklist together.
Who Will Benefit From This Checklist?
- Anyone looking to register their own company in China
- Foreign enterprises that are planning to set up operations within China
- Foreign companies and individuals that are currently operating in China and are looking at operating independently
- Manufacturers looking at moving their production to China
What Does This Checklist Cover?
- All the documents that will be required for each WFOE setup
- Different stages and timeframes involved
The Different Types of WFOE’s
- Consulting WFOE - which is the easiest to establish
- Manufacturing WFOE - which allows companies to manufacture in China
- Trading WFOE or a Foreign-Invested Commercial Enterprise (FICE)- which grants companies both import and export licenses and allows them to trade locally
How do I get my own FREE copy?
To download your FREE copy of 'Wholly Foreign Owned Enterprise (WFOE) Procedure & Document Checklist' simply click the button below!