Foreign Venture Capital Firms, A Number Of Legal Problems

Foreign-invested venture capital enterprise ("VC FIE") is a new kind of foreign-invested enterprise ("FIE"), which is totally different from traditional FIEs in terms of their business operation mechanism. This thesis intends to discuss several legal issues relating to VC FIEs such as organization forms, taxation policies and exit methods, analyze how the current legal framework hurdles the development of VC FIEs in China, and give personal opinions on how to improve the current legislation with regards to VC FIEs.This thesis consists of six parts, among which Preface introduces the background knowledge on venture capital and indicates the significances of the development of VC FIEs in China; Chapter One gives a general legal framework which rules the operation of VC FIEs in China; Chapter Two focuses on analyzing how to structure a limited partnership for VC FIEs under the current relevant laws; Chapter Three is concerned with the current tax encouragement policies for VC FIEs; Chapter Four explores the accessible methods for VC FIEs to exit from the enterprises where they make investments under the current laws and regulations; and Conclusion is given concerning the overview of the current legal environment for the development of VC FIEs.