Establishing a WFOE (Wholly Foreign-Owned Enterprise) in China: Main Issues

company-chopA WFOE is a Chinese limited liability company, wholly owned by one or more foreign investors. This is an investment vehicle often favored by foreign investors because it is (or is supposed to be) under their full control as there is no local partner. Furthermore, its preparation and establishment procedure does not involve all the lengthy negotiations that a sino-foreign joint venture usually takes.


The procedure for the setting up of a WFOE involves principally:

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