The characteristics are as follows: (1) All the capital of a foreign-funded enterprise is invested by foreign investors. (2) Foreign-funded enterprises refer to China enterprises established in China by foreign investors in accordance with the laws of China. (3) A foreign-funded enterprise is an economic entity. Foreign-funded enterprises shall carry out independent accounting, operate independently, be responsible for their own profits and losses, and assume independent responsibilities. Therefore, foreign-funded enterprises do not include branches of foreign enterprises and other economic organizations in China. Foreign enterprises, foreign economic organizations and foreign individuals invest in China to set up economic entities that can independently bear civil liabilities and have the qualifications of China enterprises as legal persons. This form is a foreign-invested enterprise. Enterprises with foreign investment can be divided into Chinese-foreign joint ventures, Chinese-foreign cooperative ventures, foreign-funded enterprises (also known as wholly foreign-owned enterprises), foreign-invested joint-stock companies and foreign-invested joint-stock companies according to the differences in investment methods, distribution methods, risk methods, investment recovery methods, debt methods and liquidation methods.
legal ground
Article 77 of the Company Law A joint stock limited company may be established by means of initiation or offering. A promoter refers to a company established by the promoters who subscribe for all the shares that should be issued by the company. The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.