China's Foreign-Invested Limited Partnership Enterprise

Since a reform in 2010, foreign investors can establish a Foreign-Invested Limited Partnership Enterprise (FILPE) in China together with Chinese or foreign investors. The FILPE can be combined with a domestic or foreign corporate general partner, thus allowing for a structure that offers the flexibility and taxation conditions of a partnership while protecting its investors against personal liability like a company. The book explores from the perspective of a foreign investor if the FILPE is an attractive investment vehicle by analysing whether it provides the characteristics that are internationally recognized as constituting a standard corporate form. Among these characteristics, the three that are most strongly interconnected and interdependent form the core of the analysis: legal personality, limited liability and transferable ownership interest. These are analyzed in context of China's restrictive framework of foreign investment regulations and enterprise organization law.

Auteur

Stephan Kuntner is Head of China Corporate Business, Funk Gruppe GmbH, Hamburg, providing risk management services to Chinese investors for their investment project in Germany and Europe. He has also established an office of Funk Gruppe in Shanghai, China. Previously, he has worked for an international law firm in Shanghai, advising foreign investors on their investment projects in China.

Contenu

Introduction and Concept.- Part I: Basic Principles of Chinese Partnership Law.- The Concept of Foreign Direct Investment in China.- Joint Venture Enterprises as Sino-Foreign Alliances.- Partnership Enterprises as Sino-Foreign Alliances.- The use of FIPE as Business Organisation in China.- Summary of Part I.- Part II: FILPE as a 'Standard Corporate Form'.- Legal Personality. Limited Liability 207.- Transferable Ownership Interest.- Summary of Part II.- Part III: Conclusion.- Summary of the Book