China FIE incorporation service
Hotline: 86-755-82143348, Email:amyhuang@citilinkia.com
China FIE supplied by ATAHK was set up in Hong Kong in 2000. With ten years' development, the group has established a sound service network worldwide for the small and medium-sized enterprises, all the services are business-orientated and solution-orientated
foreign invested enterprise (FIE) definition :
A legal structure that permits a company to set up business in a foreign country. Various types of foreign invested enterprises exist in different countries. They tend to be highly regulated, especially in China. Deep regulation tends to limit avenues the enterprise may pursue to make a profit. Limitations on control of the enterprise by the parent company are common.
Foreign invested enterprises (FIEs) -- China FIE :
foreign investors wishing to establish a presence to do business within the People's Republic of China (PRC) must establish one of the several different statutory forms of FIE. These are regulated under stricter laws than domestic companies, and are also subject to the same generally-applicable laws and regulations. In general, only companies with 25% foreign equity or more can be considered as FIEs.The choice of FIE form depends on the category of the intended activity in the Guidance Catalogue, as well as on the particular operational needs or objectives of the foreign investor. Under China's strict sectoral approach to regulating business activities, FIEs will receive a business license permitting operations only within a relatively narrow scope of business, rather than for any lawful purpose.
Forms of FIE include --- China FIE :
Wholly foreign-owned enterprise (WFOE): a limited liability company 100% owned by one or more individual or corporate foreign investors. The liability of the investors is limited to their subscribed registered capital. WFOEs are the most popular form of FIE;
Equity joint venture (EJV): the most common of the two types of statutory joint venture. An EJV is a legal person company invested in together by both foreign and domestic corporate investors. The equity interests of the investors, and the division of profits, is strictly proportional to their shares of contributed registered capital;
Cooperative joint venture (CJV): CJVs are normally established as legal person limited companies, but may also be established as a non-incorporated contractual cooperation. The liability of the partners in an unincorporated CJV is unlimited, and investors tend to have greater flexibility. Non-incorporated CJVs are typically only established for specific limited purposes and activities such as collaboration in natural resources exploration and venture capital investments;
Foreign invested company limited by shares (FICLS): a joint Chinese and foreign-invested company, hence a form of joint venture (JV), limited by shares. An investor's liability is limited to its individual subscription. Companies seeking listing on the Chinese stock market must be in the form of a FICLS. A WFOE, EJV or CJV may convert to an FICLS in accordance with PRC law;
Holding company and regional headquarters: investors with major operations already in the country may wish to consider establishing a holding company or a regional headquarters to help consolidate certain group treasury, support services and trading functions. There are significant minimum investment thresholds, and operations are limited to holding company functions;
Foreign invested partnership enterprise (FIPE): available since 2010. Except for market access and other key differences, FIPEs function under the same rules as domestic partnerships and generally much the same as partnerships in the West.
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If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143348, or emailing to amyhuang@citilinkia.com.