Chinese Mainland WFOE

WFOE is the abbreviation for wholly foreign-owned enterprise. It refers to a limited liability company whose equity is held entirely by foreign investors. WFOE is invested solely by foreign investors and enjoys ownership and management rights. WFOE is a limited liability legal entity, and the responsibilities of shareholders and directors are limited to their capital contribution. WFOE does not participate publicly in the market, and its business scope is chosen from the registry's standard catalogue. WFOE requires at least one shareholder and at least one director, and it must have one legal representative, named on the business license. Foreigners can serve as directors of WFOE, and a company secretary is not required. There is no general minimum registered capital; only a law, an administrative regulation or a State Council decision can set one for a particular sector. No capital verification report is filed at registration.