Foreign-invested companies in China have two main organizational forms: corporations and partnerships. The provisions of the Company Law of the People's Republic of China (hereinafter referred to as "Company Law") and the Law of the People's Republic of China on Partnership (hereinafter referred to as "Partnership Law") shall apply to the respective organizational form, organizational structure and code of conduct of foreign-invested enterprises established from January 1, 2020 . Foreign-invested companies are no longer divided into Sino-foreign equity joint ventures, Sino-foreign contract joint ventures and wholly foreign-owned companies.
■ Companies
Foreign investors are allowed to set up limited liability companies and joint-stock limited companies within Chinese territory.
Both limited liability companies and limited liability companies are required to be registered in accordance with the Administrative Regulations of the People's Republic of China on company registration.
■ Partnerships
Foreign investors are eligible to enter into general partnerships as well as limited partnerships within Chinese territory.
A general partnership consists of partners who bear unlimited joint and several liability for partnership debts. A limited partnership consists of both general partners, who have unlimited joint and several liability for partnership debts, and limited partners, each liable for the partnership debts only up to the limits of their subscribed capital contribution.
■ Local representation office of foreign companies in China
The Local Representative Office in China of Foreign Companies Established (hereinafter referred to as “Representative Office”) is governed by the laws and regulations of the PRC (including the Administrative Regulations on the Registration of Local Branches of Foreign Companies).
Representative offices are entities opened within Chinese territory engaged in non-profit activities related to the business of foreign companies. Their responsibilities are limited to participation in market research, exhibitions, and public relations related to the products or services of foreign companies, as well as liaison activities related to product sales, service provision, domestic procurement, and domestic investment.