The value of a shareholder’s stake in the company (their share) can rise and fall. For a quick example, John and Mary each own half of the shares of the Goodwill Company Ltd.; this company has shared capital of HK$500,000, divided into 50,000 shares of HK$10 each. The company therefore has a capital of $500,000 for trading and John and Mary …
Protect Yourself and Your Co-founders
Protect yourself and your co-founders with Shareholders’s Agreement Shareholder’s Agreement is: 1. A legal contact between shareholders 2. An exit strategy if any of the founders leaves the company TIPS: Best to settle the agreement during the initial startup stage of your business
Structure of a WFOE
Step 1. Restriction on Services: -A WFOE can only conduct its business within its approved Business Scope. Business Scope of a service orientated WFOE includes: a. investment consulting b. international economic consulting c. trade information consulting d. marketing and promotion consulting e. corporate management f. technology consulting Step 2. Name Approval Required -As the application of pre-approval takes time, it is …
Advantages of a WFOE
1. It is an independent legal personality 2. Offers additional protection to its property rights as opposed to that of a joint venture company 3. Able to receive and remit capital or profit without seeking approval from the authorities 4. Able to maintain the investor ‘s global strategy 5. Shareholder’s liability is limited to its registered and paid up capital …