Will partnership law be worth it?.

The article discusses two prominent forms of renminbi-denominated funds and the key legal and tax aspects of foreign investments into such funds. The Partnership Law of China provides that the State Council will issue regulations for the establishment of foreign-invested partnerships (FIP). The partnership is characterized by flexibility in management structure and in the making of organizational changes, while foreign-invested enterprises (FIE)are not. The government is an indispensable partner in FIP and must have a say in any major partnership decision. A small number of foreign-invested venture capitalists and private equity funds use the non-legal person, cooperative joint venture form, which enjoy more flexibility and favorable tax rules.