Foreign investment enterprises (“FIE”)
FIEs generally refer to Chinese entities with foreign investment. FIEs are permitted to conduct business activities in accordance with the scope of their business as approved by the government. FIEs mainly are organized as limited liability companies, and the investor’s ownership in an FIE is represented by the amount of registered capital it injects into the entity. FIEs do not issue shares until they have been transformed into JSCs.
The main forms of corporate entity for FIEs in China are the WFOE, EJV and CJV. In general, FIEs can carry out manufacturing, processing, trading and/or service activities in accordance with the approved business scope. There are certain FIEs incorporated pursuant to special regulations to be engaged in designated business activities, such as foreign invested commercial enterprises (FICE) in wholesale, retail or trade agency services; Chinese holding companies; regional headquarters; leasing companies, fund management companies, etc.
Any Questions? Please contact us.