What should I pay attention to when buying a foreign company?

In the acquisition of foreign-funded companies, we should pay attention to the following issues: we should carefully review the existing capital of the acquired company, check the registered capital and paid-in capital on the books of the acquired company, avoid false capital contribution, and at the same time fully understand the overall operation, equity allocation and asset guarantee of the company.

legal ground

Article 172 of the Company Law of People's Republic of China (PRC) * * * The merger of companies can adopt absorption merger or new merger. A company absorbs other companies for merger, and the absorbed company is dissolved. The merger of two or more companies to form a new company is a new merger, and the parties to the merger are dissolved. Article 173 When a company is merged, all parties to the merger shall sign a merger agreement and prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the merger resolution and make an announcement in the newspaper within 30 days. Creditors may, within 30 days from the date of receiving the notice, or within 45 days from the date of announcement if they have not received the notice, require the company to pay off debts or provide corresponding guarantees.