ADVANTAGES OF WFOE
The advantages of establishing a WFOE, compared with other types of enterprises, include, but not limited to:
(1) Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
(2) Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to their customers in RMB and receive revenues in RMB;
(3) Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
(4) Protection of intellectual know-how and technology;
(5) No requirement for Import / Export license for its own products;
(6) Full control of human resources
(7) Greater efficiency in operations, management and future development.
