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Register WFOE in China and the Advantages

Update Date:2018-6-29 16:40:02     Source:www.3737580.com     Views:834

Register WFOE in China

Hotline: 86-755-82143512 ,Email: anitayao@citilinkia.com 

The process of register WFOE in China  
The Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. However, after China's entried into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well. With that, any enterprise in China which is 100% owned by a foreign company or companies can be called as WFOE.

 

 

The registered capital of a WFOE should be subscribed and contributed solely by foreign investor(s). A WFOE does not include branches established in China by foreign enterprises and other foreign economic organizations. The Chinese Laws on WFOE do not have a clear definition of the term of "branches". The term of "branches" should include both the branch companies engaged in operational activities and representative offices, which are generally not engaged in direct business activities. Therefore, branches and representative offices set up by foreign enterprises are not WFOE.

 

Register WFOE-Advantages
The advantages of incorporation a WFOE, compared with other types of enterprises, include, but not limited to:
1. Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner
2. 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
3. Capability of converting RMB profits to US dollars for remittance to its parent company outside of China
4. Protection of intellectual know-how and technology
5. For Manufacturing WFOE, no special requirements for Import / Export license for its own products
6. Full control of human resources
7. Greater efficiency in operations, management and future development

Register WFOE-Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com 

 

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