It has been only 30 years since China adopted the economic reforms, which have made it into the second-largest economy on the planet. Its pro-business policies have been remarkable, and with no sign of the impressive pace of economic growth ebbing out, China is the ultimate place for your wholly foreign-owned enterprise (WFOE).
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Wholly foreign-owned enterprises are the most preferred business vehicles because foreigners get 100% ownership. This means that you get total control over the company policies, such as who to hire and strategies to use. Here is a closer look at wholly foreign-owned enterprises (WFOEs) to determine the main categories and the best way to register in China.
The Main Types of WFOEs in China
WFOEs are business vehicles that were originally designed for the manufacturing sector. They are credited for the robust growth of the manufacturing sector in China. To replicate this success across other areas, they were allowed to also use WFOEs. So, here are the three main types of WFOEs you can form in China.
1. Manufacturing WFOEs
If you are considering activities that involve manufacturing, perhaps processing agricultural products or manufacturing heavy machinery, a manufacturing WFOE will be a perfect choice. Although manufacturing is one of the most supported niches in China, we must say that registering and getting started is pretty complex. Therefore, it is important to get the assistance of an agency of experts for WFOE registration.
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2. Consulting WFOEs
Almost all types of investors, organizations, and business departments in China need some expertise to execute their mandates correctly. So, if you are considering offering this expertise, from cyber security to staff training, go for a consulting WFOE. Note that consulting WFOEs are disallowed from drawing profit from other methods other than the services they are licensed for.
3. Trading WFOEs
A trading WFOE, also referred to as FICE, is any company that targets to engage in trading products or services defined in its scope. The most notable thing about trading WFOEs is that they can also take the structure of a joint venture (JV).Again, a WFOE can be designated as a retailer or wholesaler and is allowed to import to China or export products to the rest of the globe.
Register Your WFOE in China with the Help of an Agency
Now that you know the main types of WFOEs in China, the next step is more tasking because you take the main steps towards actualizing the dream of going offshore. We must say that for many foreigners, the process of registering a WFOE is very complex because of the long list of documents required. Foreigners also have to deal with multiple departments, from the Ministry of Finance and Commerce (MOFCOM) to the Public Security Bureau (PSB).
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The best method of registering a WFOE in China is working with an agency of experts. They have been in the company registration industry for years and are willing to help you set up your WFOE fast. Here are other benefits to expect from working with experts in company registration.
- The agency of experts can help you prepare the right business scope for your WFOE.
- With experts, you can concentrate on the core task of looking for more funds as they handle the registration.
- All the documents are prepared professionally.
- The process of company registration is completed fast and professionally.
- Experts can help you cut down the cost of company registration with a huge margin.
- The professionals will also come in handy in helping you to craft a good plan for new market entry.
One of the best agencies of experts that you can use to register a WFOE in China is Hawksford. They have helped dozens of other companies working in China, and this is your time. In addition to helping with company registration, you can also count on Hawksford for other executive services, such as accounting, filing tax returns, and payroll management.