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Advantages of WFOE

Update Date:2015-12-18 9:17:45 Source:Tannet (Malaysia) Sdn Bhd Views:616

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The advantages of establishing a WFOE include, but are not limited to:

- Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;

- Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to customers in RMB and receive revenues in RMB;

- Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;

- Protection of intellectual know-how and technology;

- Full control of human resources

- Greater efficiency in operations, management and future development.

- Investor's parent company does not have to be established for more than 2 years while for Representative Office, its parent company is required to have been established for more than 2 years.



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