WFOE (Wholly Foreign Owned Entity), that is, as the name suggests, a legal entity completely owned by foreigners. The type of WFOE used in the great majority of cases is the LLC (Limited Liability Company), where the responsibility (or “liabilityâ€) of each partner is limited to the capital they invested in the company (as in the US or in Europe). This is also the amount of registered capital required by the local government when submitting company registration application.
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