Foreigners should prefer WFOE to set up a company in China

Foreigners should prefer WFOE to set up a company in China

A Wholly Foreign Owned Enterprise (WFOE) is controlled and wholly owned by the foreign investor(s). With China’s entry into the WTO, the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development, and trading as well. The foreign investors are allowed to set up 100% foreign owned enterprise which promotes the development of China economic benefits.

And nowadays, WFOE is the most preferred structure which allows full ownership and control by the foreign investors, making it possible to develop internal structure as well as the privilege to convert the local currency for profit repartition use.

Registration of WFOE

As a Limited liability company wholly owned by the foreign investor(s) in China, a businessman can register WFOE by using an individual passport or extend the existing overseas business to China.

General Categories of WFOE

1、Manufacturing WFOE, allowing WFOEs to do only manufacture.

2、Consulting WFOE, allowing WFOEs to provide Consulting and Services.

3、Trading WFOE, allowing WFOEs to do trading activities as well as assembly.

Advantages of WFOE

The advantages of establishing a WFOE, compared with other types of enterprises, include but not limited to:

  1. Get work residence permit, house/car/bank loan and driving license;
  2. Import and export, receive L/C,T/T, Export duty-free;
  3. Commission agents, listed company, tax return from customs;
  4. Independence and freedom to implement the worldwide strategies of its parent company
  5. Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to their customers in RMB and receive revenues in RMB;
  6. Protection of intellectual know-how and technology;
  7. Great efficiency in operations, management, and future development.

How will Kudosbay service be useful to foreigners?

Kudosbay helps to set up a Wholly Foreign Owned Enterprise without any involvement of a Chinese partner. We are backed by Government, so we have first-hand information about new policies which benefit foreigners. We provide trustworthy, dependent and reliable information to support the budding entrepreneurs to establish themselves in China. There is a minimum capital requirement for different industries however, our expert team suggests ways through which entrepreneurs can widen the scope of earning over a period of time and pay the minimum capital requirement within 20 years of its establishment.

Contact support@kudosbay.com or call 8037 – 0607(press extension “0”) for more details.

We will be pleased to help you.

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