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China Expat Service Centre

Wholly Foreign Owned Enterprise (WFOE)

WFOE Formation Service Hotline:86-755-82143512, 

WFOE(Wholly Foreign Owned Enterprise) means enterprises which are established inside China in accordance with Chinese laws, and whose capital are all invested by foreign enterprises, economic institutions or individuals.

According to the rules of Foreign Enterprise Regulation, foreign capital enterprise must be registered to the benefit of the development of national economy, and match one of the following conditions which is international advanced technology and equipment are used or most/all products are exported. Organization form of foreign capital enterprise is mostly limited liability company, also can be called as one person limited company.

Specialty Of WFOE(Wholly Foreign Owned Enterprise) 
1.The investment of the enterprise are a hundred percent owned by foreign investor except the real estate, no Chinese investors participated. A enterprise can be wholly owned by one foreign individual or joint owned by several foreign investors.
2.Independent operation, no Chinese party participate in operating management. Enterprise operate in accordance with approved AOA and without interference.
3.Self-sustaining. Profits ( after tax) of the enterprise is wholly dominated by investors. Give notice and do the liquidation process in accordance with relevant law in time after the termination of the enterprise

Classification Of WFOE(Wholly Foreign Owned Enterprise)
If the enterprise is only allowed to participate in producing activity, then it can be called as a production type of foreign capital enterprise. If operate consulting service activities, then its consulting service foreign capital enterprise. If allowed to operate trading, wholesale, retail or distribution activities, then its commercial foreign capital enterprise or foreign invested commercial enterprise.

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