Presentation of a 100%
company major foreigner – WFOE
Wholly
Foreign Owned Enterprise (WFOE) is a company with capital foreigner. In China,
the WFOE was originally designed to encourage the industrial activities sour to
the export or in the advanced technology. However since China entered the World
Trade Organization, these conditions were abandoned and the WFOE became more
democratic.
From now on
the WFOE is used from now on by service companies and of consulting, import
export and company of software also.
The various typical of
WFOE
There are
many business sectors for the WFOE.
The list
this below is often chosen by the investors:
·
Manufacturing
WFOE
·
Consultancy
(yet Service(Department)) WFOE
·
Trading
WFOE or Foreign Invested Commercial Enterprise (FICE)
The advantages of the WFOE
The
advantages of a WFOE included these advantages:
·
Independence
and freedom of implementation of an international strategy without being
dependent on a Chinese partner
·
Capacity
has to manage officially all the business operations of the company and to
charge it rmb
·
Protection
intellectual of the knowledge and the technology
·
No
need of license of Import / Export for its own products
·
Total
control in its strategy of recruitment
·
More
effective operations, management and future development.
·
The
investors do not any more need to establish an office(desk) of representation
during two years before creating a WFOE
Fields of activity of a
WFOE
One of the
most importing problems of a WFOE is the definition of its field of activity.
The field of activity needs to be defined and the WFOE can only exercise the
activity defined in its license of activity.
Every
change of activity requires a change of the statuses. Inevitably, there is a
negotiation with the authorities to accept a wider field of activity.
Generally
the inclusive field of activity, investment consulting, international economic
consulting, trade consulting, marketing information and consulting, corporate
promotion consulting management, technology consulting, manufacturing, etc.
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