Key positions by a WFOE

A WFOE has the following key organs:

The shareholder(s), who make capital contributions, have the highest position in the hierarchy of the company. A Wholly Foreign-Owned Enterprise (WFOE) can have either an executive director or a board of directors. The executive director (or board of directors) designs, develops and implements the agenda of the company’s activities according to shareholder decisions.

It is possible that a board director holds the position of a general manager, a deputy general manager, or any other senior management position simultaneously. This also includes CFO, and all other employees designated as such in the company’s articles of association (AoA).

Furthermore, a WFOE requires a general manager, who undertakes the company´s day-to-day business. This position can concurrently be carried out by an executive director or a board member.

Finally, corporate law requires that a WFOE has at least one supervisor to monitor the implementation of company obligations by the board director and senior management personnel. To avoid any conflicts of interest, the legal representative, the executive director, the board director, the general manager and the senior management personnel cannot undertake the supervisor position at the same time.