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, legal and fiscal matters.
Types of WFOE:
Wholly Foreign Owned Enterprises (WFOE / WOFE) are mainly sorted into 3 types. Although, there are other types of WOFEs available in financial and food and beverage industries; the most common types of WFOEs utilized nowadays are: