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Is a foreign invested enterprise (FIE) treated any differently than a domestic company?

Is a foreign invested enterprise (FIE) treated any differently than a domestic company?

Mergers & Acquisitions

Monday, 21 September 2009 08:55

Yes. This is controlled through the use of a catalogue which classifies various industries into:

(1) the encouraged,

(2) the permitted,

(3) the restricted and

(4) the prohibited. Currently, a wholly foreign owned enterprise (WFOE) is a restrictive form of corporate structure that covers companies in many industries. More and more investors are opting for a corporate form that appears similar to that in their native country.

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