Formation-涉外律师网

Chinese government's foreign investment-related industrial policies are embodied in the Provisions on Guiding the Orientation of Foreign Investment, according to which projects with foreign investment fall into 4 categories, namely encouraged, permitted, restricted and prohibited ones. The projects with foreign investment that are encouraged, restricted and prohibited are listed in the Catalogue for the Guidance of Foreign Investment Industries (Amended in 2015). And those that don't fall into the categories of encouraged, restricted or prohibited projects are the permitted projects with foreign investment, which are not listed in the Catalogue for the Guidance of Foreign Investment Industries. 

Foreign investment projects falling into the encouraged and the restricted category in the Catalogue and involving technology transfer, imported equipment for self-use within the aggregate investment, excluding commodities listed in the Catalogue of Import Commodities for Foreign Investment Projects with no Tax Exemption, are exempted from the tariffs and import value-added tax. With respect to encouraged Foreign Investment Projects, the preferential treatment specified in the relevant laws and administrative regulations are offered. For those who engage in the construction or operation of a project involving energy, transportation and urban infrastructure (including coal, petroleum, natural gas, power, rails, roads, harbors, airports, urban roads, wastewater treatment, garbage disposal, etc..), wherein a large investment is made and a long term is required for recouping the capital outlay, the business scope thereof may also be expanded to cover the related items subject to approval. 

In 1999, with the implementation of China's Western Development Strategy, to encourage domestic and foreign enterprises to invest in the region, relevant government departments promulgated the Catalogue of Advantaged Industries for Foreign Investment in the Central-Western Region. The newly amended Catalogue of Advantaged Industries for Foreign Investment in the Central-Western Region was promulgated in 2013. Foreign-invested projects falling within the Catalogue herein may enjoy the preferential policies for foreign-invested projects under the encouraged category.

In order to create a favorable investment environment and to encourage overseas firms to invest in China, since 1979 the Chinese government has gradually set up a relatively complete legal system, and constituted a foreign investment policy system, which mainly includes industrial policies, regional policies, tax policies and financial policies. This Guide only lists out the major Chinese laws and regulations (including foreign investment-related laws and regulations). Laws and regulations applicable to foreign investment in China are: major foreign investment laws and regulations, general laws and regulations, and international treaties.

Wholly Foreign-Owned Enterprises,Sino-Foreign Equity Joint Ventures and Sino-Foreign Cooperative Joint Ventures, are the three main forms of foreign investment in China. Other investment forms include Joint Stock Limited Companies with Foreign Investment, Foreign Investment Companies, Chinese-Foreign Cooperative Exploitation, BOT, etc.

Corporation in the US

RMBCA-Revised Model Business Corporation Act 

De Jure Corporation--long been translated into "company" in China

De Facto Corporation--No equivalent in China

Corporation by Estoppel--No equivalent in China

Partnership in the US

General Partnerships (GP)

Limited Partnerships (LP)

Limited Liability Partnerships (LLP or RLLP)--No equivalent in China

Limited Liability Companies (LLC)--No equivalent in China

Form A Corporation or Partnership

Company in the UK

Companies Act 

Private Company Limited by Shares

Private Company Limited by Guarantee

Public Limited Company