Have you been planning to expand your business to China and don’t know what type of ownership you should consider for your business? If yes, then it is advised to know about the advantages of having WFOE and increase business profit.
There is no denying this fact that WFOE in Shanghai is fast becoming the "go-to" company type for foreign investors who aren't intent on having a presence in the world's second-largest economy and chief manufacturing hub. However, WFOE is the right company type for your business while planning to get your company registered in China.
Before deciding that whether WFOE ownership is right for your business or not, it is first important to understand that what exactly is a Wholly Foreign Owned Enterprise?
WFOE is basically a business formed by foreigners with overseas capital. It can issue an invoice to local businesses in export, hire staff independently and profits can be sent back to abroad. In other words, it can provide you with an authority to start trading and doing business totally legally, but without Chinese involvement.
Why should you opt for WFOE ownership in Shanghai?
The major advantages of incorporation a WFOE, compared with other types of enterprises, including but not limited to:
●Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner.
●Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to their customers in RMB and receive revenues in RMB.
●Protecting the intellectual know-how and technology
●If you opt for WFOE ownership for your business, you won't require any special license for import or export of your own products.
The process of getting this business owner is quite easier, all you need to is to find the reliable local partner who can guide you all the process and assist you getting the license for your business. By paying just one extra amount to them, you can easily reduce the complexity of the procedure and get your company registered without any hassle.
Before deciding that whether WFOE ownership is right for your business or not, it is first important to understand that what exactly is a Wholly Foreign Owned Enterprise?
WFOE is basically a business formed by foreigners with overseas capital. It can issue an invoice to local businesses in export, hire staff independently and profits can be sent back to abroad. In other words, it can provide you with an authority to start trading and doing business totally legally, but without Chinese involvement.
Why should you opt for WFOE ownership in Shanghai?
The major advantages of incorporation a WFOE, compared with other types of enterprises, including but not limited to:
●Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner.
●Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to their customers in RMB and receive revenues in RMB.
●Protecting the intellectual know-how and technology
●If you opt for WFOE ownership for your business, you won't require any special license for import or export of your own products.
The process of getting this business owner is quite easier, all you need to is to find the reliable local partner who can guide you all the process and assist you getting the license for your business. By paying just one extra amount to them, you can easily reduce the complexity of the procedure and get your company registered without any hassle.
