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What is a wholly foreign-owned enterprise in China?

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What is a wholly foreign-owned enterprise in China?

Posted On November 2013

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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