WFOE in China
A wholly foreign owned enterprise (WFOE) is a limited liability company that is owned exclusively by the foreign investor(s) within Chinese territory. They do include branches that are established in China by foreign enterprises or other foreign economic organizations. The services industry, including a variety of consulting and management services, software development and trading services, tend to use WFOEs.
Advantages of WFOEs
- Establishing a WFOE allows the independence and freedom to implement strategies of the parent company without having to consider the involvement of a Chinese partner.
- WFOEs are able to formally undertake business, rather than just functioning as a representative office.
- Invoices are able to be issued to customers, and revenues can also be received, in Renminbi (RMB).
- Profits can be converted from RMB to USD for remittance to the parent company outside of China.
- Greater efficiency in operations, management and development of the company.
- Complete control of human resources.
- Protection of intellectual knowledge and technology.
- Import/export license is not required for company’s own products.
China’s entry into the WTO has meant that an increasing number of businesses are now open to a WFOE, especially in businesses relating to trading, wholesale and retail.
To find more about other popular ways of Incorporation in China please visit
Joint venture in China Read more
Representative Office in China Read more
10 reason that make GMG your one stop company:
- GMG Company established in China since 2006, during past 7 years we helped more than 1500 companies successfully established business here.
- GMG main clients are small and medium enterprises so because of big volume we provide best service fee and can offer unique solution to every client.
- GMG doesn’t outsource other local company for your service so you can trust us and visit all our offices, see real people.
- GMG, unlike other companies has professional lawyers that graduated from TOP Chinese universities both International and Chinese graduates. We obtained the license to represent international companies in all courts and offer problem solving service.
- GMG provides free consultation in our Offices or via Skype interview, we don’t charge fee per hours.
- GMG is cooperating with famous public organization and organize free webinars or open seminars where any people can learn more about business in China.
- GMG consultants often invited to the local Chinese TV business shows and newsletters interviews; we are always open to the public.
- GMG speak next languages: Chinese, Spanish, English, German, French, Italian, and Russian.
- GMG has a strong international management culture; we are always looking in a future.
- GMG use the latest IT technology in our daily work, we are always optimizing company working processes.