Chinese Wholly Foreign Owned Enterprise (WFOE / WOFE)

Opening a company in China is the first step to entering this important, growing but often challenging market. And with the proper support and guidance, a WFOE / WOFE registration is not a daunting task!

Things change frequently in China, and staying up to date with the current processes and regulations is critical. FDI China have many years of experience in the changing Chinese business setup scene. We would be happy to assist you with China WFOE / WOFE registration and company incorporation.

What is a WFOE / WOFE?

A WFOE / WOFE (Wholly Foreign Owned Enterprise) is a Chinese registered company that is completely owned by foreign investors (individual or corporate). There is some confusion with the broader term FIE (Foreign Invested Enterprise) which, to clear things up, refers to any type of company with at least 25% foreign investment.

For a foreign company wanting independent operation in China, with the ability to invoice clients and make a profit a WFOE / WOFE is certainly the best option. A WFOE has full control of HR as well and can hire both foreign and local staff.

Changing times in China

WFOEs and ROs have for many years been the most popular options for foreign companies looking to get started in China. As China’s economy and demographics change however, the advantages of a WFOE registration are becoming more and more important. The appeal of China is shifting quickly from a profitable base of manufacturing and export to a country with a growing middle class and domestic spending opportunities. With the ability to sell and invoice in China, a WFOE is able to take advantages of these shifts, and we see growing interest in setting up.

The types of WFOE / WOFE being registered are shifting too. In the recent past, the WFOE structure was most popular for manufacturing companies. Nowadays, more and more are being set up in the consulting and management sectors, as well as industries such as high tech and software development.