First foreign-invested partnership enterprise set up in Zhejiang

15 2010

    It is learned from Zhejiang Provincial Administration for Industry and Commerce that Yiwu Ali Basha Information Service Center (ordinary partnership), the first foreign-invested partnership enterprise in Zhejiang,was officially registered and established,which means that foreign investors could register a new kind of enterprises-foreign-invested partnership enterprise in Zhejiang,in addition to the Chinese-foreign joint venture,Chinese foreign cooperative venture and foreignowned enterprise.

    Since the reform and opening-up,we have been implementing special regulations upon foreign investment. Some foreign investment laws and regulations were promulgated,such as Law of PRC on Chinese-Foreign Equity Joint Ventures,Law of PRC on Chinese-Foreign Contractual Joint Ventures and Law of PRC on Foreign-Capital Enterprises. And those enterprises in three forms of ventures make foreign investment on the mainland in the form of corporate enterprises.

On November 25 last year,Registration on Foreign-Invested Partnership Enterprises was issued by the State Council and later Registration Regulation on Foreign-Invested Partnership Enterprises was released by the State Administration of Industry and Commerce and put into practice from March 1 this year,which opens door for foreign investors to set up partnership enterprises.
According to the persons in charge of the Zhejiang Provincial Administration for Industry and Commerce,the characteristic of foreigninvested partnership enterprise is that two or more foreign enterprises or individuals,as well as foreign enterprises or individuals with Chinese natural persons,legal persons and other organizations,can all set up foreign-invested partnership enterprise in China. For the first time,Chinese citizens are permitted to set enterprises with foreigners in natural persons .

It is learned that the foreign-invested partnership enterprises are convenient and flexible compared with incorporated enterprise. The partners have more choices in forms of investment,without capital verification or the capital limit for registration. And the establishment and change of foreigninvested partnership enterprises require neither examination nor approval of commerce department but direct registration application. Those special regulations not only simplify formalities for examination and approval and make partnership enterprises establishment more convenient for foreign enterprises or foreigners but reduce the establishment cost and make the registration more efficient.

Although it is more convenient in the establishment and operation of foreign-invested partnership enterprises,some persons in charge of Zhejiang Provincial Administration for Industry and Commerce said that special attention should be paid to some respects,such as the investment subject, registration of jurisdiction scope, industry policy and the applicable principles of law.