The Choice of Organizational Forms for Commercial Investment in China: A Comparative Analysis Based on Different Types

Zhaorong Lyu ()
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Zhaorong Lyu: Qingdao Academy

A chapter in Proceedings of the 2024 2nd International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2024), 2025, pp 716-725 from Springer

Abstract: Abstract Comprehensive review of commercial and legislative practices across countries reveals a variety of enterprise types, including not only corporations but also sole proprietorships, partnerships, and others, available as choices for investors. China has developed systematic legislation regarding commercial organizations, providing regulatory guidance for the establishment of various types. The analysis shows that each enterprise type possesses distinct characteristics tailored to meet investors' customized needs. In conclusion, the selection of commercial organizations requires careful consideration of multiple factors, including but not limited to liability, entrepreneurial risk, industry sector, consumer market, management selection, capital requirements, and financing methods.

Keywords: Enterprise forms; partnerships; limited liability companies; joint-stock companies; tax considerations (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-706-9_64

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