What is Foreign Investment Companies Limited by Shares (FICLBS)?

A FICLBS refers to an enterprise legal person established in accordance with the Tentative Provisions Concerning Several Issues Regarding the Establishment of Foreign Investment Companies Limited by Shares. The total capital of a FICLBS should be divided into shares of equal amount. The shareholders of a FICLBS should bear liabilities to the FICLBS to the extent of the capital they subscribed. A FICLBS shall bear liability for the debts of the FICLBS within the limit of their assets. The shares purchased and held by foreign shareholders should account for over 25% of the capital of the FICLBS.