How to use WFOE?
Following are ways to use WFOE in China:
Getting register WFOE as a manufacturing plant, the manufactured products can be sell and exported out of the china. With the help of Chinese labour resources, you can export the products to the global market from China, by spending little on technological import. Registering WFOE as the cost centre can surely expedite your profits.
Getting WFOE registered as the sales centre, you can promote and sell your product in entire China. China is the world’s most populated country with the population of above 14 billion living there, thus this opens up great product selling and promotion avenues for you. With great consumption power and demand for innovative and new products, incorporating WFOE as a commercial entity of being a sales centre, surely would enable you to earn maximised profits with the use of selling mechanism of retailing, whole-selling and distribution networks.
Getting WFOE registered as the purchasing agent, you can earn substantial profits by buying products from the factories at subsidised price and then you can sell them to the global market. Not only profits but you can also apply to have your VAT refunded but this is not allowed to the representative office as they cannot claim VAT refund.
Foreign Human Resources
With fast growing developed economy, China is always in a need of skilled workers and innovators. You will be able to hire and bring foreign skill persons to Chinese markets by incorporating WFOE. This status will hold you eligible to apply for the work visas of your foreign employees to let them stay and work in China legally. But, representative office cannot benefit from this facility as they are not allowed to give application for work visas for their foreign employees.