Partnerships: A New Form of Investment for Foreign Enterprises and Individuals


Currently, foreign investors start business in China primarily in the form of Equity Joint Ventures, Cooperative Joint Ventures, Wholly Foreign Owned Enterprises ("WFOE") and Representative Office. However, the Measures initiate a new structure - foreign invested partnerships ("FIP") for foreign investors to invest and operate in China.

The Measures indicate that FIPs shall be governed by the Partnership Enterprise Law, issued as a general rule over partnership enterprises in 2007, and shall be limited by the Foreign Investment Industry Catalogue.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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