Research On Legal Issue Of Investment-Oriented Company By Foreign Investors

As early as in 1995, the MOFTEC promulgated the"Tentative Provisions on Investment Companies by Foreign Investors. " Later has promulgated the supplementary Regulations (A) and (B)."Also in 2003, the Ministry of Commerce promulgated the "Amendment Decision of Tentative Provisions on Investment Companies by Foreign Investors and its Supplementary Regulations."In 2004, the provision was finally removed the "interim"label by Ministry of Commerce, and two years later was further added. In order to better understand this form of foreign investment, a thorough understanding of its depth is particularly necessary.The first part discusses the content of Investment Company by Foreign Investors itself. First, the author points out three features of management -Oriented Companies by Foreign Investors, namely, making direct investment rather than engaging in indirect investment, being able to provide management service, research support and finance support and being independent legal person in the form of limited liability company .Secondly, three constituent elements of it are discussed: qualified foreign investors, Specific funding capital requirements and for the purpose of "direct investment " .At last, the concepts of EJV, CJV, WFOE, Companies Limited by Shares by Foreign Investors, Partnership of Foreign Investors and investment company by domestic investors are discussed and compared.The second part discusses the establishment of Investment Company by Foreign Investors itself. The author analyzes the establishment procedure of Investment Companies by Foreign Investors and its branches. Then, the author gives a brief classification and summary of business scope.The third part discusses operation and regulation of Investment Companies by Foreign Investors. The author discusses the meaning, constituent elements, primary methods and the regulation measures of"transferring pricing", then provide recommendations to improve regulation. Next, the author analyzes the concepts of"direct investment"and"the invested company by Investment Company by Foreign Investors", and then investigates the establishment of the invested company by Investment Company by Foreign Investors. As regard of "national security review"issues, the author interprets"The Provision of Establishing security review system to domestic merges by foreign investors".