WFOE, sometimes misspelled WOFE, is an entity in China. Get our free white paper explaining what a WFOE is and how the registration of a WFOE in China goes.

Foreigners in China looking to set up their business have multiple options. Of these options, a Wholly Foreign Owned Enterprise (WFOE) is the most used format. A WFOE in China is a Limited Liability Company (LLC), which is completely owned by one or more foreign investors. WFOE's were originally created to encourage foreign-run manufacturing and exporting activities. However, since China’s entry into the World Trade Organization (WTO) in 2001, limitations on WFOE's have been reduced to allow for their use in the service industry (Consulting WFOE's). Before setting up a WFOE in China, it is important to understand that many western legal concepts are applied differently in China.

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