Guides
China WFOE Advantages for Foreign Investors
Why foreign businesses choose a Wholly Foreign-Owned Enterprise in China: full ownership, market access, B2B and B2C sales, fapiao, contracts, and equal legal protections under Chinese law.
The main advantage of having a WFOE company rather than other types of corporate structure in China is that it allows 100% foreign ownership, allowing foreign owners to have complete control over the company’s operations and strategic decisions.
A WFOE allows foreign companies to access the Chinese market and provides the ability to do business with both Chinese businesses B2B or Chinese individuals B2C. A WFOE can enter legally binding contracts with other Chinese companies or individuals and issue legal VAT invoices (fapiao).
As WFOE companies must follow Chinese laws, they are also protected by Chinese laws and given the same legal protections as Chinese-owned companies.