A Wholly Foreign-Owned Enterprise (WFOE, sometimes incorrectly WOFE) is an incorporated foreign-owned limited liability company in China. A WFOE could be an essential first step in starting your business with China, for the purposes of raising invoices, paying suppliers, having a Chinese bank account, employing local staff and indeed credibility in the market.
Two main options for building a business in China include,
1) Start a company with a Chinese partner who will own more than 50% of the company (there are obvious disadvantages here)
2) Start a WFOE – You own this company 100%
There are various types of WFOE: