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If your company is underperforming back home or you want to achieve exponential potential, one of the best options for success is registering it in an offshore jurisdiction. China stands out as an investment destination because of its rapidly growing economy.
Following the reforms initiated back in 1979, the Chinese economy has been growing at an average rate of 10% per annum and is showing no sign of slowing down. This makes it an excellent time to join and see your firm burgeon into a multinational. To do this, you require a good investment vehicle, and a wholly foreign-owned enterprise, simply known as WFOE China, is the best.
Keep reading to learn more about WFOs and unique benefits to anticipate for going offshore into China.
What is a WFOE?
As the name wholly foreign-owned enterprise (WFOE) suggests, it is a type of company where the foreign owner(s) has 100% shareholding. It is the most preferred type of company because it provides the owner or parent company full autonomy over the offshore firm. Although initially created to support manufacturing, China changed its stand after the entry into the World Trade Organization. Now, you can set up a WFOE in almost every industry.
There are three main categories of WFOEs that you can form in China:
Manufacturing WFOEs:
If your business involves processing or developing new products, from industrial machinery to pharmaceuticals, the best company structure is a manufacturing WFOE in China. The process of registering a manufacturing WFOE is the most stringent because of the parameters involved. For example, you have to provide a comprehensive plan for waste management and carbon footprint reduction.
Consulting WFOEs
These are be… Read More
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