Introduction of foreign-funded enterprises
Foreign-funded enterprises are a general concept, including all foreign-invested enterprises. According to the legal characteristics of foreign investors in the registered capital and assets of enterprises, such as different shares and equity ratios.
Foreign-funded enterprises are independent economic entities, operating independently, accounting independently and bearing legal responsibilities independently. As far as organizational forms are concerned, foreign-funded enterprises can be legal persons or non-legal persons. A foreign-funded enterprise with legal personality has obtained legal personality according to law, and its organizational form is generally a limited liability company. The liability of foreign investors to the enterprise is limited to the amount of their subscribed capital contribution.
A foreign-invested enterprise that does not form a legal person organization may take the form of partnership or sole proprietorship. A partnership here refers to an enterprise established in China by two or more foreign legal persons or natural persons with the same capital contribution.
Its legal basis is applicable to the provisions of the General Principles of Civil Law on individual partnership and enterprise joint venture by analogy. 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.