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China business setup

China FIPE Setup

China FIPE Formation Service  
Hotline: 86-755-82143512,

China FIPE setup is also called China FIPE formation, China FIPE registration,   China FIPE incorporation and China FIPE establishment.

Foreign-invested Partnership Enterprise (FIPE) is an unlimited liability business entity at least one of whose partners is a foreign investor. Both foreign individuals and legal entities can be partners of a FIPE. The term partnership enterprise refers to general partnerships and limited partnerships. A general partnership enterprise may be formed by general partners who bear unlimited joint and several liabilities for the debts of the partnership. The general partners share unlimited liabilities for the debt of the partnership. On the other hand, 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.

China FIPE Setup-Establishing Steps for FIPE Setup in China
FIPE can apply for business license directly to local State Administration for Industry and Commerce (SAIC) without application for Certificate of Approval by local Ministry Of Commerce. However, if a FIPE’s business scope falls into some special category, for instance, manufacturing, finance, it needs to obtain a pre-approval as well.

China FIPE Setup-Investors of Partnership Enterprise
The Minimum number of partners should be 2, there’s no requirement on the nationality of a Partner, thus it can be all foreign investors to form a FIPE or Foreign and Chinese partners mixed FIPE.

China FIPE Setup-Advantages of partnership enterprise
The advantages of establishing a FIPE , compared with other types of enterprises, include, but not limited to:
1. No requirements on minimum registered capital;
2. Less procedures comparing with Wholly Foreign Owned Enterprise or Joint Venture
3. Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
4. Foreign Enterprise or Individual is allowed to establish a Partnership Enterprise with 
5. Chinese individual (While Chinese individual is not allowed to have Joint Venture Company with foreign investor)
6. 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 the the pertage of invetment of shareholders)

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