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    Introduction Of Registration Of Wholly Foreign-Owned Companies

    2015/9/11 17:52:00 26

    Productive EnterprisesTradeMarketing

      

    brief introduction

    A wholly foreign-owned enterprise is a limited liability company wholly invested by the foreign party to invest, which is operated by the foreign party itself, earning its own profits and undertaking its own risks.

    China's wholly foreign-owned enterprises are encouraging.

    Productive enterprises

    On the basis of this, the products of such enterprises are export oriented and can introduce advanced technology.

    With China's accession to the WTO, this situation has changed, and more service oriented foreign-funded enterprises have been set up, many management consulting companies, software development companies and

    Trade

    (take the bonded areas as an example) companies are constantly emerging.

      

    Wholly foreign-owned enterprises have the following advantages:

    (1) developing the global strategy of the parent company independently and freely without considering the factors of Chinese investors.

    (2) the ability to formally carry out business without having many restrictions as the representative office does.

    (3) the renminbi is used as an income to open renminbi invoices to clients.

    (4) RMB profits are converted into US dollars for remittance to overseas parent companies.

    Hire employees directly in China.

    (5) protect intellectual property rights and know-how.

    (6) there is no need to share profits with other parties.

    (7) operation, management and future development are more efficient.

      

    Scope of business:

    The most important issue in project documents is the scope of business of wholly foreign-owned enterprises.

    The scope of business in all industries in China is very strict and precise.

    A wholly foreign-owned enterprise can only carry out business activities within its permitted business scope. This scope will be indicated on the business license.

    If necessary, apply and obtain approval.

    Of course, there is a need for consultation with the approving department to grant a wider scope of business.

    Take consulting company as an example, its business scope includes investment consultation, international economic consultation, trade information consultation, etc.

    Marketing Management

    Consulting, company management consulting, technical consultation, etc.

      

    Management system:

    Wholly foreign-owned enterprises have two levels of management system:

    (1) the highest decision-making body of the board of directors and wholly foreign-owned enterprises.

    (2) general manager is responsible for daily company management.

    The board members shall meet at least once a year, and the board meeting shall be presided over by the chairman.

    A quorum is a 2/3 of a board member.

    If a director is unable to attend the meeting, he may appoint any person to represent him in the voting.

      

    Duration and termination

    :

    In China, a typical foreign-invested enterprise typically has a typical period of 15 to 30 years (probably longer), and the duration of a consulting firm is usually 20 years.

    If the time limit is extended, the application can also be approved.

    If a larger investment project, a longer construction period, a lower rate of return on investment, producing complex products, projects requiring advanced key technologies from the outside world, and projects that are internationally competitive, the duration of these wholly foreign-owned enterprises can be extended to 50 years.

    The time limit for special projects approved by the State Council can be extended to more than 50 years.

    Wholly foreign-owned enterprises shall terminate at the time of occurrence of the following circumstances: if there is a serious loss, they will not be able to continue to operate or force majeure.

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