Comments on: Partnership Option Soon Available for Foreign Investors http://www.china-briefing.com/news/2009/12/03/partnership-option-soonavailable-for-foreign-investors.html Fri, 10 Feb 2012 06:20:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: China Briefing http://www.china-briefing.com/news/2009/12/03/partnership-option-soonavailable-for-foreign-investors.html/comment-page-1#comment-27290 China Briefing Thu, 07 Jan 2010 02:41:25 +0000 http://www.china-briefing.com/news/?p=5717#comment-27290 This is a very special entity under Chinese laws. “limited partnership” means some partners are limited liable for the liabilities to this partnership company. In a partnership company, the partnership can be partially Chinese and partially foreign or can be 100 percent foreign or 100 percent Chinese. So having a Chinese partner is not necessary. In a WFOE, shareholders’ liabilities to the WFOE are limited to the shareholders’ capital contribution. However, in a partnership company, the shareholders’ liabilities are same as the partnership company and without limitation to their investment in this partnership company, which means the investors shall use all their assets to be liable for the partnership company. Even though a partnership company can have limited partnership investors, the limited partnership investors are not allowed to manage or represent the partnership company. In a partnership company, at least one partner is unlimited liability partner. Regards, This is a very special entity under Chinese laws. “limited partnership” means some partners are limited liable for the liabilities to this partnership company. In a partnership company, the partnership can be partially Chinese and partially foreign or can be 100 percent foreign or 100 percent Chinese. So having a Chinese partner is not necessary.

In a WFOE, shareholders’ liabilities to the WFOE are limited to the shareholders’ capital contribution. However, in a partnership company, the shareholders’ liabilities are same as the partnership company and without limitation to their investment in this partnership company, which means the investors shall use all their assets to be liable for the partnership company.

Even though a partnership company can have limited partnership investors, the limited partnership investors are not allowed to manage or represent the partnership company. In a partnership company, at least one partner is unlimited liability partner.

Regards,

]]> By: B. Schorr http://www.china-briefing.com/news/2009/12/03/partnership-option-soonavailable-for-foreign-investors.html/comment-page-1#comment-27280 B. Schorr Wed, 06 Jan 2010 15:20:58 +0000 http://www.china-briefing.com/news/?p=5717#comment-27280 This is very interesting. What does limited partnership mean in this context? Is there no need for a partner? What is the difference to a WFOE? Thank you in advance and best regards B. Schorr This is very interesting.
What does limited partnership mean in this context?
Is there no need for a partner?
What is the difference to a WFOE?

Thank you in advance and

best regards

B. Schorr

]]> By: China Briefing http://www.china-briefing.com/news/2009/12/03/partnership-option-soonavailable-for-foreign-investors.html/comment-page-1#comment-26785 China Briefing Fri, 04 Dec 2009 02:46:31 +0000 http://www.china-briefing.com/news/?p=5717#comment-26785 Yes, a partnership is now another option of doing business in the country. Under the new regulation, foreign investors would be permitted to set up limited partnerships in China by themselves or with local partners. Regards, Yes, a partnership is now another option of doing business in the country. Under the new regulation, foreign investors would be permitted to set up limited partnerships in China by themselves or with local partners.
Regards,

]]> By: E. Ng http://www.china-briefing.com/news/2009/12/03/partnership-option-soonavailable-for-foreign-investors.html/comment-page-1#comment-26778 E. Ng Thu, 03 Dec 2009 12:33:50 +0000 http://www.china-briefing.com/news/?p=5717#comment-26778 Thanks for the update. So, does this mean that now foreign companies now have the options of setting up RO, WOFE, JV, or Partnership? Can foreign companies own a larger share of over 50%? Thanks for the update. So, does this mean that now foreign companies now have the options of setting up RO, WOFE, JV, or Partnership? Can foreign companies own a larger share of over 50%?

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