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What is the difference between foreign-funded enterprises and wholly foreign-owned enterprises?

Blue** Jiangsu Suzhou Investment and financing consultation 2020.11.05 20:16:33 351 people read

What is the difference between foreign-funded enterprises and wholly foreign-owned enterprises?

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1. A wholly foreign-owned enterprise refers to an enterprise established in China in accordance with the relevant laws of China with all its capital invested by foreign investors, excluding branches, representative offices and other branches of foreign enterprises and other economic organizations in China. A sole proprietorship enterprise refers to an enterprise established by a foreign investor in China according to law, and the foreign investor shall bear unlimited liability for the debts of the enterprise.
2. Foreign enterprises refer to enterprises established in China according to the provisions of Chinese laws and invested jointly by Chinese investors and foreign investors or only by foreign investors.

2020-11-05 20:17:33 Reply


1. A wholly foreign-owned enterprise refers to an enterprise established in China in accordance with the relevant laws of China with all its capital invested by foreign investors, excluding branches, representative offices and other branches of foreign enterprises and other economic organizations in China. A sole proprietorship enterprise refers to an enterprise established by a foreign investor in China according to law, and the foreign investor shall bear unlimited liability for the debts of the enterprise.
2. Foreign enterprises refer to enterprises established in China according to the provisions of Chinese laws and invested jointly by Chinese investors and foreign investors or only by foreign investors.

Hello, my answer to your question is that foreign-invested enterprises refer to enterprises established in China according to the laws of the People's Republic of China and invested jointly by Chinese investors and foreign investors or only by foreign investors. The Chinese investors referred to herein include Chinese companies, enterprises or other economic organizations, while foreign investors include foreign companies, enterprises and other economic organizations or individuals. A foreign-funded enterprise is an economic entity that operates, calculates and assumes legal responsibility. In terms of organizational form, a foreign-funded enterprise can be a legal person or an unincorporated entity. A foreign-funded enterprise qualified as a legal person can obtain the legal person status according to law. Its organizational form is generally a limited liability company. The liability of a foreign investor to the enterprise is limited to the amount of its subscribed capital contribution.

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