Zhongshan company formation (FIPE) refers to establish a Foreign Invested Partnership Enterprises in Zhongshan. The city is located along the west side of the mouth of the Pearl River, directly opposite Shenzhen and Hong Kong. It lies south of Guangzhou and Foshan and north of Zhuhai and Macau. The proximity of Zhongshan to Hong Kong and Macau is an advantage to its economic development, especially in manufacturing. In this exposition, Tannet mainly introduce the Foreign Invested Partnership Enterprises (FIPE) in Zhongshan.
Introduction to Foreign Invested Partnership Enterprises (FIPE)
A partnership company is a profit-making organization that is jointly funded, co-financed and shared by partners, and is a profit-making organization with an unlimited joint and joint liability for corporate debt. FIPE refers to foreign enterprises set up by two or more partners. FIPE could be established under two channels:
1. Two or more foreign enterprises or foreign individuals shall establish a partnership in China, and all the partners shall be foreign enterprises or individuals.
2. Foreign enterprises or individuals shall establish partnerships in China with individual persons, legal corporation and other organizations of China.
Advantages of FIPE
1. Chinese individuals are allowed to participate directly as the individual investor, which is different from the Joint Venture (JV).
2. No need to apply for the further approved by commercial authorities for establishment.
3. No capital injection required and no minimum capital stipulated.
4. The enterprise can keep a simple management mechanism structure, low management cost, higher decision-making efficiency.
5. No Corporate Income Tax.
6. It reduces the operating cost of the enterprise.
Requirements on FIPE Registration
A partnership enterprise must meet the following requirements:
1. At lease 2 or more partners ( no requirements on the nationality of a Partner);
2. A written partnership agreement;
3. Capital contribution subscribed to or actually paid by the partners;
4. A business name and an office in an office building for the partnership enterprise.
How to register a FIPE?
To establish a general FIPE, it is not required to obtain approval of the commerce department. To establish a foreign-related enterprise, however, approval of the commerce department (and that of the relevant department if prior approval is required for the project under the law) shall be obtained before registration with the competent industry and commerce department.
In accordance with the relevant regulations, establishing a general FIPE does not require the approval of the commerce department; the FIPE is only required to apply for registration to the competent industry and commerce department. Nevertheless, if under any law, administrative rule or State Council provision approval is required for the establishment of FIPE, the relevant approval documents shall also be obtained.
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If you have any questions about living, working or doing business in China, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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