Ways
Optional For Investment
In Taiyuan , investors
are furnished with following ways to invest:
Sino-Foreign
Joint Venture
Foreign firms, enterprises
and other economic organs and individuals can establish with
Chinese firms, enterprises or other organs a company with
limited shares which is a jointly invested and qualified Chinese
legal person within China's territory after being approved
by government of China accordingly to Law of Sino-Foreign
Joint Venture Enterprise Operation by People's Republic of
Chinaon biases of mutual benefit and equality. Parties of
such joint venture are obligated to take debt and interests
accordingly to their respective portion of capital, the minimum
portion for foreign investment is 25% of registered capital.
Sino - Foreign
Cooperation
Foreign firms, enterprises
and other economic organs and individuals can establish with
Chinese firms enterprises or other organs a company which
is a jointly invested and contracted economic entity within
China 's territory after being approved by government of China
accordingly to Law of Sino-Foreign Cooperation Enterprise
Operation by People's Republic of China on biases of mutual
benefit and equality. Parties of such cooperation company
are obligated by contract to have rights; to take debt, loss
and benefit accordingly to respective contract stipulations.
The minimum portion for a foreign investment is 25% of registered
capital.
Sole Capital
Foreign Investment Business
Foreign firms, enterprises
and other economic organs and individuals can establish with
his sole capital a company which is a share limited company
with qualification of a Chinese legal person under administration
and protection of China 's law within China 's territory after
being approved by government of China accordingly to Law of
Foreign Enterprise Operation by People's Republic of China
The company shall take full risk and enjoy full net benefit
against amount of his investment.
Compensation
Trade
Those foreigners
that directly or on base of loan provide Chinese enterprise
with equipment will be reimbursed periodically with product
that is produced by the equipment provided, or will be reimbursed
by amount of price and interest of equipment or technology
provided periodically.
Customer
Designed Processing and Assembling
Foreigner to supply
material, parts, components, or drawings and packing material
for Chinese enterprise to process, assembly at request of
the foreigner, and turn product to the consigner to sell.
For such business, Chinese enterprise is to collect cost of
respective processing and delivering.
Building-Running-Turning
(BOT)
Foreign investors
of a project to sign contract with Chinese government and
to prepare and construct the signed infrastructure project.
Within the contract term (normally 20- 50 years) the project
company shall possess, run and maintain the projected complex
and, at the same time collect fee from users. In this way
the project company recuperates its investment and make rational
profit. Up on maturity, the projected facility shall be handed
over to Chinese government free of charge.
International
Lease
International lease
falls in mainly 3 kinds: funded lease, business lease and
comprehensive lease. The founded lease is that the leasing
company to purchase with his fund equipment designated by
customer and lease to customer; neither party is allowed to
discontinue the lease during the service of the equipment;
the leaser reserves ownership; the customer reserves the usufruct;
during term of lease, maintenance is born by the user, and
the leaser recuperate his fund on equipment price, interest
and overhead from charging the user the rent. The business
lease is that the leaser to provide equipment needed by the
user and to bear the maintenance; the user to pay the rent
and to return the equipment on maturity of lease. The comprehensive
lease is a way in which the lease is combined with cooperation,
but the leased property must be the portion beyond registered
capital of the cooperation company.
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