Proportional restrictions on enterprises' foreign investment

Legal analysis: A company can invest in other limited liability companies and joint stock limited companies, and be responsible for the invested companies to the extent of the capital contribution. Except for investment companies and holding companies stipulated by the State Council, the company's foreign investment shall not exceed 50% of its net assets. The company's foreign investment belongs to the company's operational autonomy, which should be stipulated in the company's articles of association, and there is no need to limit the proportion of investment in the company's net assets by law. In addition, companies should be allowed to invest in other unincorporated enterprises except limited liability companies and joint stock limited companies.

Legal basis: People's Republic of China (PRC) Company Law.

Article 1 This Law is formulated for the purpose of regulating the organization and behavior of companies, protecting the legitimate rights and interests of companies, shareholders and creditors, maintaining social and economic order and promoting the development of socialist market economy.

Article 2 The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law.

Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property.

Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.

Article 4 Shareholders of a company shall enjoy the right to return on assets, participate in major decisions and choose managers according to law.

Article 5 A company engaged in business activities must abide by laws, administrative regulations, social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities.

The legitimate rights and interests of the company are protected by law and shall not be infringed.

Article 6 To establish a company, it shall apply to the company registration authority for registration of establishment according to law. Those that meet the conditions for establishment as stipulated in this Law shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority; Those who do not meet the conditions for establishment as stipulated in this Law shall not be registered as a limited liability company or a joint stock limited company.

Where laws and administrative regulations stipulate that the establishment of a company must be approved, the approval procedures shall be handled according to law before the company is registered.

The public may apply to the company registration authority to inquire about the registered items of the company, and the company registration authority shall provide inquiry services.