How to use WFOE
Here we will look into what WFOE can do in China and how it can be used in China?
WFOE as a Cost Centre
By registering WFOE as a cost centre, it will be register as a manufacturing plant in China that can sell and export goods outside of China. Through this, you can take maximum benefits of Chinese labour markets by importing known technologies and earn maximum profits by exporting the products out of China to the global markets.
WFOE as a Sales Centre
By registering WFOE as a sales centre, products promotion can be done in whole China. China is a country with 14 billion citizens with high demands for new, customised and innovative products and with high consumption power of Chinese, you are no doubt stepping into a great prospect for your business by registering WFOE as a sales centre. You can use direct whole-selling, retailing or through distribution network, you can enter the Chinese market.
WFOE as a Purchasing Agent
By registering WFOE as a purchasing agent, you can buy products or items from the Chinese factories at the factory price and sell them to global market, to earn more profit. For WFOE as a purchasing agent, you can claim to refund VAT, but the representative office of the WFOE will not be able to claim refund of VAT.
Visa for Foreign Human Resources
China is the largest growing economy of the world and with increasing development in China there is much room for the innovators and human resources. Due to WFOE, you would be able to get work visas for your foreign employees and make them eligible to work and stay in China. But, it must be noted that, representative office of the WFOE will not be eligible to apply for the visa for foreign employees.