21/12/2013
First Foreign Joint Limited Partnership Enterprise Established In Yiwu
As the first foreign joint partnership enterprise--Yiwu Xinwantong Foreign Partnership Limited Business Firm was registered at Yiwu Industrial and Business Bureau. Engaged in the commodity wholesale and import and export business, this firm is established by a Chinese ans a oversea company. Professor Zhangzheng from Economy college of Beijing University claimed that the foreign joint limited partnership can strongly promote the development of foreign economic mode by raising the positivity of foreign application and reassure the hesitations.
Before the “Foreign Enterprises or Individuals Within the Territory of China To Set Up the Partnership Management Approach”has been put in force, there are only two forms of foreign registration application: foreign-fund enterprises and resident representative office of foreign enterprises. Especially the number representative offices reached over 3000 at peak, accounting for half of the sum of Zhejiang province (Ningbo except). Nevertheless, according to current law foreign representative office can not engage in business activity. Hence, with this limitation, foreign businessmen came Yiwu for purchase commodities trapped in a dilemma.
After the approval of foreign joint partnership registration featuring low requirements of application, conveniency, legitimate qualification, it turned out to be appealing in the Yiwu resident foreigners. There are 1884 foreign invested firms accounting for more than 75% in China in a general partnership.
The recently established Xinwantong Trading Firm is a partnership limited enterprise. What are the differences between limited and general partnership? Introduced by a staff in Foreign business department of Yiwu industrial and business administration, the limited partnership shares profit in accordance with the partnership agreement and bear debts and responsibility with the limitation of invested funds. While the general partnership takes unlimited joint and several liability. So the limited partnership erased the hesitation of investors taking unlimited liability and decreased the corporation risk in limited partnership, eventually win itself a bright prospect at Yiwu, a city flowing with foreign trade business.
Sources: http://www.linkyiwu.com/
