Foreign-funded companies can be divided into five types:
Chinese and Foreign Cooperative Enterprises
Chinese-foreign cooperative enterprises are contractual enterprises held in China by foreign enterprises, other economic organizations or individuals, together with Chinese enterprises or other economic organizations. The cooperation conditions, income distribution, risk and loss sharing, investment recovery and operation management, and the ownership of surplus wealth at the end of the collaboration are all agreed upon in the contract. The important difference between Sino-foreign cooperative enterprises and Sino-foreign joint ventures is that the investment or cooperation conditions of the cooperating parties can not be converted into equity or equity, but income distribution, risk undertaking, debt sharing and the distribution of surplus wealth at the end of the enterprise can be completely or incompletely based on the equity of their investment. The situation will be decided. The ways of investment recovery and operation management are also different from those of joint ventures, which have greater sensitivity.
Sino-foreign joint ventures
A Sino-foreign joint venture is a limited liability equity company in which foreign companies, enterprises and other economic organizations or individuals, together with Chinese companies, enterprises or other economic organizations, jointly invest, operate, share profits and share risks in China. Investors share profits, risks and losses according to the proportion of registered capital investment (equity).
Wholly foreign-owned enterprises
A wholly foreign-owned enterprise is an enterprise established in China by a foreign enterprise, other economic organization or individual with all the capital invested by foreign investors, also known as a wholly foreign-owned enterprise. All profits made by enterprises belong to foreign investors.
Foreign Investment Co., Ltd.
Foreign-funded limited company is a company whose capital consists of equal shares. Shareholders undertake obligations to the company with the shares they subscribe for, and the company assumes obligations to the company's debt with all its wealth. Among them, the shares purchased and held by foreign shareholders account for more than 25% of the company's registered capital. The company may be established by means of sponsorship or solicitation.
A foreign-invested company is a company established by a foreign investor in China by way of sole proprietorship or joint venture with a Chinese investor to engage in direct investment. The company is limited liability company.
The registered foreign-funded enterprises in Nantong registered company will have certain tax preferential policies, including four aspects: (1) preferential tax policies on import; (2) preferential tax policies on export; (3) preferential tax policies on income tax; (4) preferential tax policies on suspension tax.
With the development of China's economy, more and more foreign capital has entered China to set up enterprises. Nantong's registered foreign-funded companies usher in a period of rapid development. Registered foreign-funded companies need to be familiar with Chinese laws, regulations and processing procedures. Therefore, stop the registration of foreign-funded companies and choose professional foreign-funded companies. The registry shall stop handling the matter to prevent the occurrence of negligence and unnecessary losses.
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