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The Legal Points Related to the Changes in Equity Interest of Investors in Foreign Investment Enterp

Foreign investment enterprises include Sino-foreign equity joint ventures, Sino-foreign co-operative joint ventures or wholly foreign-owned enterprises established in China under Chinese laws. Changes in equity interest of foreign investment enterprises refer to changes that occur in the shares of capital contributions of investors. Some related documents need to be submitted to examination and approval authority under laws when a change happens in equity interest, of which include the lawful and valid agreement to change the Equity Interest. The agreement to change the Equity Interest defines the details of changes in Equity Interest and the rights and obligations of each party; it plays a vital role in the change in Equity Interest.

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The Legal Issues Related to Foreign Investment Trade and Retail Business

Trade and retail business belong to the different ways of distribution. They support the product manufacturer – product consuming procedure.. Mastering the enormous distribution channel and network will not only influence consumer, but also control manufacturers. In the face of huge market in China, many foreign investors are eager to enter the field of trade and retail business. But before Chinese government promulgated the Measures for the Administration on Foreign Investment in Commercial Fields in 2004, foreign investment are strictly restricted. There have been many restrictions on it, for example, foreign investors cannot have the single proprietorship in this field. So there was comparatively few foreign invested enterprises acquired business license. After the Measures for the Administration on Foreign Investment in Commercial Fields getting effective from December 11th, 2004, on the premise of approval, Chinese government permits foreign investors have the single proprietorship in the trade and retail business, and there is no restriction on the investment locality, including both the domestic trade and the imp. & exp.. Businesses. According to the Measures for the Administration on Foreign Investment in Commercial Fields, the investment subject in this field includes both foreign companies and enterprises and foreign individuals. Whereas those subjects shall carry out the trade and retail business activities through foreign-funded enterprises established within China rather than through other forms to carry out the business activities in the field of trade and retail business. There is no special demand for the lowest registered capital that investors invest in business enterprises, the same as domestic enterprises of a kind. All of them are based on Company Law of the People's Republic of China, Order of the President No.29 (Revised edition 1999): registered capital for a company mainly engaging in trade business shall be RMB500,000 up, and for a company mainly engaging in retail sales, RMB300,000 up.

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LP & GP in Private Equity Fund

2010 International LP & GP Summit (Shanghai) was held in Shanghai International Convention Center by China Venture Capital Research Institute Limited and Antai College of Economic & Management Shanghai Jiao Tong University from 14th-16th January, 2010. Its theme is LP in China: Situation and Development, Opportunity and Challenge. LP, that is Limited Partner, usually serves as fund investor in fund operation. GP, that is General Partner, commonly serves as fund manager in fund operation. LP realizes the appreciation and exit of investment capital by GP managing investment fund. Effective communication and cooperation between LP and GP are the magnitude guarantee of realizing the continuous investment capital appreciation.

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The Operation and Exit of Private-equity Investment in China

According to the report of TRI.TO TRI.N，the global news and information provider，on July 7th , Chinese enterprises have attracted 2.6 billion dollars Privately Offered Fund Investment in the first half of this year, which accounts for 36 per cent of the total Privately Offered Fund Investment in Asian and Pacific region and China has got the maximum benefit from Privately Offered Fund in Asian and Pacific region ex-Japan. Private-equity Investment carries a great financial support for Chinese Small and Medium Enterprises’ financing. Many policies, laws and directives have been set in place by Chinese government to encourage Private-equity Investment.

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The Conditions of Establishing A Foreign-invested Venture Investment Enterprise

The difficulties in financing are an outstanding issue for the development of small and medium-sized enterprises in China. China’s State Council has issued Several Opinions strengthening the decision on further improving the work of utilizing foreign investment and to continuously support foreign investors to set up venture investment enterprises and to actively use private equity funds as well as improve the exit strategies. Such policies show the government will energetically advocate foreign-invested venture investment enterprises and private equity funds in China.

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The Important Roles of Counselor for Enterprise’s Development

What can lawyers do for enterprises? Nowadays in China, legal services are growing vigorously; however, there are still many people associate lawyer with “going to court” only. In fact it is only small part of lawyers’ role. Even when the enterprise has hired a lawyer as legal adviser, they are not fully leveraging lawyer’s functions.

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