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What foreign-funded enterprises are there in Dongguan?
Foreign-funded enterprises are the symmetry of "domestic enterprises". Generally, it refers to an enterprise established in China according to the relevant laws and regulations of China and operated by foreign investors alone. According to the Law of People's Republic of China (PRC) on Foreign-funded Enterprises adopted at the Fourth Session of the Sixth National People's Congress1April 1986, foreign-funded enterprises are 100% wholly foreign-owned enterprises, excluding branches established by foreign enterprises, companies and other economic organizations in China. Foreign-funded enterprises have obtained legal person status in China according to law, and according to international tax practices, China should exercise resident jurisdiction over them. Because there is no separate income tax law for foreign-funded enterprises in China, foreign-funded enterprises also pay enterprise income tax in accordance with the provisions of the foreign enterprise income tax law.
Foreign-funded enterprises are independent economic entities, operating independently, accounting independently and bearing legal responsibilities independently. As far as organizational forms are concerned, foreign-funded enterprises can be legal persons or non-legal persons. A foreign-funded enterprise with legal personality has obtained legal personality according to law, and its organizational form is generally a limited liability company. The liability of foreign investors to the enterprise is limited to the amount of their subscribed capital contribution. A foreign-invested enterprise that does not form a legal person organization may take the form of partnership or individual proprietorship. Partnership here refers to an enterprise established within the territory of China with the contribution of two or more foreign legal persons or natural persons, and its legal basis is analogously applicable to the provisions of the General Principles of the Civil Law on individual partnership and enterprise joint venture. A sole proprietorship enterprise refers to an enterprise established by a foreign investor in China according to law, and the foreign investor shall bear unlimited liability for the debts of the enterprise.
Foreign-funded enterprises are a general concept, including all foreign-invested enterprises. According to the different shares and share ratios of foreign investors in the registered capital and assets of enterprises and other legal characteristics, foreign-invested enterprises can be divided into three types:
1. Sino-foreign joint ventures. Its main legal features are: there are legal requirements for the proportion of foreign investors in the registered capital of enterprises; Enterprises adopt the organizational form of limited liability companies. Therefore, this kind of joint venture is called equity joint venture.
2. Chinese-foreign cooperative enterprises. Its main legal features are: there is no mandatory requirement for foreign investors to participate in the registered capital of enterprises; Enterprises adopt flexible ways of organization and management, profit distribution and risk burden. Therefore, this kind of joint venture is called contractual joint venture.
3. Foreign-funded enterprises. Its main legal feature is that all the capital of an enterprise belongs to foreign investors.
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