WFOE is an acronym for Wholly Foreign Owned Enterprise. It is a 100% foreign owned (individual or corporate) limited liability company able to generate profit, invoice clients and hire local and foreign employees in China. WFOEs are the most popular business structure for foreign businesses entering China. Setting up a WFOE takes 2 to 3 months. We’ll need to prepare all incorporation documents, open your Chinese corporate bank accounts, and assign a legal representative.

China uses FTZs to pilot new policies and regulations, thus permitting companies to experience more liberalised environment, with potentially lighter regulatory touch. Many international companies found FTZs an attractive option to set up China operations, depending on their industry. While FTZs in Shanghai and other prime Chinese cities have seen initial success, FTZ in Tier 2 and Tier 3 cities have distinct advantages with large pools of young skilled labour, lower costs and access to large regional markets beyond China’s coastal areas that are often overlooked. Many of the FTZs, such as Chongqing, Sichuan, Shaanxi and Henan focus on areas that are Canada’s strengths.