A Wholly Foreign-Owned Enterprise (WFOE) is the most common business structure for foreign investors in China — a limited liability company wholly owned by foreign shareholders with full operational control.
A WFOE (also called WOFE or外商独资企业) is a Chinese limited liability company registered under Chinese law with 100% foreign ownership. It can conduct business operations, issue invoices, hire employees, and repatriate profits — unlike a representative office which has restricted activities.
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Quick answers
A Wholly Foreign-Owned Enterprise is a Chinese limited liability company owned entirely by foreign shareholders. It can generally hire staff, contract, and invoice within its approved business scope.
Basic licensing often takes several weeks, but industry permits, leases, banking, and capital account steps commonly extend the overall timeline to one to three months or more depending on city and sector.
Choose a WFOE when you need to operate commercially in China. A representative office is limited to liaison-type activities and cannot ordinarily run a full sales operation or hire local employees as freely as a WFOE.
No. A WFOE does not require a Chinese equity partner. Joint ventures are used when the sector is restricted, a partner brings assets or licenses, or strategy favors shared control.
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