Foreign investors are permitted to form partnerships in China, as general or limited partners under the Foreign-Invested Partnership Rules, to engage in a wide range of business activities. There is no legal minimum or maximum for capital contributed by the partners to a partnership. Capital may be contributed in cash, in kind or in the form of land use rights, intellectual property rights or services. Contributions other than cash must be appraised at a specific value. Partners may increase their capital contributions to the partnership enterprise, as stipulated in the partnership agreement or as decided by all of the partners. These additional contributions should be used to expand the scale of business or to compensate for losses.
There are no specific limits on the number of partners in a general partnership, but a limited partnership is restricted to 50 partners. In a general partnership, each partner has equal rights to conduct the routine affairs of the partnership, the admission of new partners is subject to the approval of the partners and the conclusion of a written partnership agreement, and newly joined partners have the same rights and responsibilities as the original partners.
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