What are the main considerations for enterprises to choose VIE architecture?

1, VIE architecture can avoid some restrictions of domestic laws and regulatory policies on foreign investment in certain industries to a certain extent. Before Internet companies adopted VIE architecture, they needed IC (that is, telecom operator license to provide Internet information services and value-added services to users) mainly for this consideration.

2.VIE structure is convenient for enterprises to list in overseas capital markets such as the United States and Hong Kong. First, it is a corporate structure that can be directly listed overseas, and there is generally no need for restructuring before listing. Second, these structures do not need to be approved by domestic institutions such as China Securities Regulatory Commission.

3. companies with 3.VIE structure are easy to accept investment from overseas funds;

4. Overseas holding companies that directly accept VIE structure investment are generally regulated by the company law under the Anglo-American legal system, which is more flexible than the relevant domestic laws, and can make more designs to meet the needs of the company and shareholders in terms of corporate governance and shareholders' rights.