Dongguan corporate formation (FIPE) refers to register a Foreign Invested Partnership Enterprise in Dongguan. FIPE is a unlimited liability business entity without minimum requirements on registered capital. FIPE becomes more and more popular among young entrepreneurs with their new startups in China as it requires no registered capital but the FIPE still could hire people, collect payments, issue invoices, apply for work & residence in China freely. Below is a brief summary about FIPE registration in FIPE.
Types of Foreign Invested Partnership Enterprise (FIPE)
There are three types of FIPE as following:
1. Limited Partnership Enterprise (LPE): A limited partnership enterprise is formed by a combination of general partners and limited partners where the limited partners bear the liabilities for the partnership's debts to the extent of their capital contributions.
2. General Partnership Enterprise (GPE): A general partnership enterprise may be formed by general partners who bear unlimited joint and several liability for the debts of the partnership. The general partners share unlimited liabilities for the debt of the partnership.
3. Special General Partnership Enterprise (SGP): A special general partnership enterprise resembles a general partnership except that it must be a professional service institution offering services requiring professional knowledge and special skills.
Conditions of A FIPE
A partnership enterprise must meet the following requirements:
1. At least 2 or more partners.
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.
Advantages for Registering A FIPE
The advantages of establishing a FIPE , compared with other types of enterprises, include, but not limited to:
No requirements on minimum registered capital;
Less procedures comparing with Wholly Foreign Owned Enterprise or Joint Venture
Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
Foreign Enterprise or Individual is allowed to establish a Partnership Enterprise with Chinese individual (While Chinese individual is not allowed to have Joint Venture company with foreign investor);
The profit distribution of a FIPE could follow an informal negotiated agreement or abide by scheme adopted in the partnership agreement (While for LLC, profit distributions is according to the percentage of investment of shareholders).
Contact Us
If you have further inquires, 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 86-755-82143422, 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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