A wholly foreign-owned enterprise (WFOE) is a common investment vehicle for foreign investors wishing to operate in Chinas manufacturing, trading, or service sector. This corporate structure offers foreign investors full ownership and the autonomy to own property, form legally binding contracts, recruit local staff, and invoice in RMB.
While the challenges to setting up a WFOE are well-known and discussed, what often comes as a surprise to many investors, is that a WFOE deregistration can be a much more arduous process, typically taking 12 to 14 months to complete, in contrast to three to six months needed for a WFOE setup.
This extended period of time accounts for the time that the government bureaus require to ensure that all obligati…
Read the full article at: https://www.china-briefing.com/news/closing-wfoe-china-step-step-guide/
