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Setting up a Company in China

The most obvious way for US Companies looking to do business in China is to set up a Wholly Foreign Owned Enterprise, abbreviated as WFOE or WOFE.

What is a WOFE ? Under Chinese law, a Wholly Foreign Owned Enterprise is a limited liability company that is fully owned and capitalized by foreign investors (You) and operated without a local (Chinese) partner. This provides you with greater control over your businesses operations, revenue and profit targets.

Since it is a separate legal entity, it also limits your liability to the contributions made to the registered capital of the WOFE.

A WOFE is the favorable option for an American company that wants to enter the Chinese market.
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