WFOE
Business & Finance abbreviation · Company Type
| Stands for | Wholly foreign-owned enterprise |
|---|---|
| Categories | Business & Finance |
WFOE stands for Wholly foreign-owned enterprise, a company type abbreviation.
Limited liability company in mainland China owned entirely by foreign investors, allowing full control without a Chinese partner. WFOEs have long been the main vehicle for foreign businesses manufacturing, trading or providing services in China.
Example: The retailer set up a WFOE in Shanghai to import and sell directly instead of using a distributor.
Usage notes
Pronounced "woof-ee." Since China's Foreign Investment Law took effect in 2020, foreign-invested enterprises are governed by the general Company Law, and WFOE is no longer a separate legal category, though the term remains in everyday use. Sectors on China's negative list still restrict or prohibit full foreign ownership.
Related abbreviations
More company type abbreviations
- A/S – Aktieselskab (stock company, Denmark)
- AB – Aktiebolag (limited company)
- AG – Aktiengesellschaft (stock corporation)
- ApS – Anpartsselskab (private limited company)
- AS – Aksjeselskap / aktsiaselts (limited company)
- ASA – Allmennaksjeselskap (public limited company)
- B Corp – Certified B Corporation
- Bhd – Berhad (public limited company)
- bros. – Brothers
- BV – Besloten vennootschap (private limited company)
- C corp – C corporation
- CIC – Community interest company