2. Access: They can engage in different industries at first. According to the guidelines for foreign-invested enterprises, industries in China can be divided into four categories: encouraging, agreeing, restricting and prohibiting foreign investment. But domestic enterprises do not have this requirement. Similarly, there are some enterprises in practice, whose business licenses are written as domestic companies, but they cannot engage in specific industries. Such companies are often reinvested by foreign-funded enterprises and managed by foreign-funded enterprises in terms of industry supervision. This department belongs to the problem that theory, law and practice are out of line.
3. Investment: Foreign-funded enterprises need the approval of the local commercial commission and special industries to invest in China, and then they can continue to invest in the future. When investing abroad, the treatment of the two companies is basically the same, and there is no difference in management process.
4. Establishment and change: In terms of two kinds of establishment tools, foreign-invested enterprises are more complicated and need the approval of the business department. If it is a special industry, it needs the approval of the relevant ministries and commissions, and it takes a long time to apply for the approval certificate for the establishment of foreign-invested enterprises and then apply for the business license. The establishment of domestic enterprises is relatively simple. When there is a change, foreign-funded enterprises usually need to be re-approved by the examination and approval authority, while domestic-funded enterprises do not.
5. Foreign exchange: Generally speaking, domestic enterprises must obtain the approval of SAFE to open foreign exchange accounts, but foreign-funded enterprises have great advantages in opening foreign currency accounts. You can open various types of foreign exchange accounts without prior approval. Especially when borrowing abroad, foreign-funded enterprises still have advantages and do not need pre-approval. Domestic enterprises need approval.
6. License: Related to the access policy, even if many industries do not explicitly restrict foreign-funded business, foreign-funded enterprises are more troublesome than domestic-funded enterprises in the approval process. Change is also a double trouble.
7. Listing and issuing bonds: At present, foreign-funded enterprises cannot be listed in China, nor can they issue bonds publicly. Although the domestic policy says that it should be spread out slowly and encouraged.
8. Labor: At present, foreign-funded enterprises need to go to the local labor department to witness after signing labor contracts with employees. Domestic companies don't need it. The main legal feature is that all the capital of an enterprise is owned by foreign investors.
Extended data:
Foreign-funded enterprises are independent economic entities, operating independently, accounting independently and bearing legal responsibilities independently. As far as organizational forms are concerned, foreign-funded enterprises can be legal persons or non-legal persons. A foreign-funded enterprise with legal personality has obtained legal personality according to law, and its organizational form is generally a limited liability company. The liability of foreign investors to the enterprise is limited to the amount of their subscribed capital contribution.
A foreign-invested enterprise that does not form a legal person organization may take the form of partnership or individual proprietorship. Partnership here refers to an enterprise established within the territory of China with the contribution of two or more foreign legal persons or natural persons, and its legal basis is analogously applicable to the provisions of the General Principles of the Civil Law on individual partnership and enterprise joint venture. A sole proprietorship enterprise refers to an enterprise established by a foreign investor in China according to law, and the foreign investor shall bear unlimited liability for the debts of the enterprise.
The type selection method of investment enterprises refers to the method that investors can reduce the tax burden by choosing the type of enterprises according to the preferential tax provisions of the tax law. China enterprises can be divided into domestic enterprises and foreign-funded enterprises according to their investment sources, and different tax policies are implemented for domestic enterprises and foreign-funded enterprises respectively; The same type of enterprise has different internal organizational forms and different tax policies.
References:
Baidu encyclopedia-domestic enterprises
Baidu encyclopedia-foreign-funded enterprises