What are the benefits of the WFOE structure?

A WFOE is usually the best investment vehicle for investors establishing a long-term presence in China when a joint venture is not required, because they overcome the limitations associated with representative offices (RO):

• A WFOE can directly employ staff, make profits, issue invoices in RMB, and engage in operations that are precluded to the RO.
• A WFOE can directly sign contracts with third parties, which can thus eliminate intermediaries, such as agents, when sourcing goods from China.  
• The WFOE structure allows a company to have a wider local presence, a better understanding of the consumer needs as they evolve over time, and onboarding more staff is quite simple.