
What is a wholly foreign-owned enterprise in China?
It is a company established in China according to Chinese laws and is wholly owned by one or more foreign investors. WFOE is of limited liability, i.e.: shareholders will only be liable for the amount of shares that they have subscribed to. The laws that set down the rules for WFOE are:
- Law on Foreign-invested Enterprises (WFOE law)
- Implementing Rules of the WFOE Law
- Company Law

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