Regulations of forms and institutions of the foreign capital enterprise

Updated: Mar 21, 2018 Print

The organization form of the foreign capital enterprise is a limited liability company, and can be other liability form upon approval. For the foreign capital enterprise that is a limited liability company, the responsibility of the foreign investor to the enterprise is limited to its subscribed capital contribution; for other liability form of foreign-invested enterprises, the responsibility of foreign investors to the enterprise shall apply to Chinese laws and regulations.

Organization of the foreign capital enterprise can be set up independently by foreign investors according to the different operation, management of enterprise scale, and the mode of operation, the foreign capital enterprise shall set up the Board of Directors according to the organization. If a foreign-founded enterprise is founded by one or many foreign investors, the number of Board of Directors shall be allocated according to the investment proportion of each shareholder. The foreign capital enterprise shall elect chairman of the Board of Directors. The chairman is the legal representative of the enterprise, and must declare to the Chinese government for the record.

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