invest in Shanghai-Foreign-Funded Partnership Enterprise


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Foreign-Funded Partnership Enterprise

Foreign-funded partnership enterprise (PE) herein refers to the partnership enterprise established by 2 or more foreign enterprises or individuals in China as well as the one established by foreign enterprise or individual and Chinese natural person, legal person or other organizations in China.

The necessary documents for Registration of Establishment of PE

No.	Documents	Original/Photocopy	Note
1	Subject qualification certification of the whole partners or the identification of natural person	One original	The subject qualification certification of foreign partner or identification of natural person shall be notarized by the competent organization of the country where it is domiciled and authenticated by Chinese embassy in the country.
2	Overseas domicile certification of natural person partners of PE	One original	This certification shall be notarized by the competent organization of the country where it is domiciled and authenticated by Chinese embassy in the country also.
3	Credit certificate issued by financial institutes engaging in business with foreign partners.	One original
4	The ownership certificate of the property.	photocopy	Offered by the landlord of the property
5	Leasing agreement of the legal address	Two originals
6	Establishment registration application	One original	Drafted by SHAIC and signed by all partners
7	Partnership agreement	Two originals	Drafted by Corpstart and signed by all partners
8	Proxy of the representative designated or the agent jointly entrusted by all partners	One original	Drafted by Corpstart and signed by all partners
9	Confirmation on the contribution subscribed or actually paid by each partner of all partners	Two originals	Drafted by Corpstart and signed by all partners
10	Explanation qualified for the policy for foreign investment industries	One original	Drafted by Corpstart and signed by all partners
11	Domestic receiver of legal document service	Two originals	Drafted by Corpstart and signed by foreign partners

Difference from Company Limited and PE

1	Registered capital
	Partners of PE do not pay registered capital. Investors of Company Limited shall pay registered capital to Company Limited.
2	Liabilities
	The investors of Company Limited bear the limited liabilities for its debts to the extent of their capital contributions. Common partners of PE bear unlimited and joint liabilities for the debts of the partnership enterprise. A limited partner shall bear liabilities for the debts of the limited partnership enterprise in the limit of the amount of capital contributions he subscribes to. A limited partnership enterprise shall have at least one common partner. A limited partner shall neither execute the partnership affairs, nor represent the limited partnership enterprise outside.
3	Name of enterprise
	The name of Company Limited is “Limited” . The words "Common Partnership" shall be indicated in the name of a partnership enterprise and its name can not use “Limited”.
4	Foreign exchange investment
	Investors of Company Limited can remit foreign exchange to Company account with “registered capital” and “foreign debts” to launch business. Partners of PE can not remit foreign exchange except business incomes so far. All the business incomes shall pay tax.
5	Investors and partners
	The Chinese investors of Company Limited (Chinese-Foreign Joint Venture) except Pudong Company shall be company. Chinese partners of PE can be natural person.

Author: Shanghai CorpStart Business Consulting Co., Ltd.
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