Investment structuring and its risk assessment
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When a foreign Startup founds a business, it is crucial to know the local legal criteria of the involved industry. In case your intended business falls into the restricted industries under the Negative List for Foreign Investment, what could you do? The structure of Variable Interest Entities (VIEs) might be a popular vehicle by which the foreign entrepreneur may get access to Chinese market. The speaker will introduce the background and effects of VIEs and explain the shareholding structure and contractual arrangements. You will also learn about cash flows under VIEs and internal and external risks of VIE and give recommendations to Startups for risk control.
Ecovis has partnered with StartUp Grind in 2016 for the U-Start competition and has helped many start-ups to set up their businesses in China. Due to their experience Ecovis is very popular among founders who want to get started in China.
What you can take away from this Seminar
- What is the VIE structure?
- What kinds of contractual arrangements are needed in a VIE and how does the cash flow work?
- What should your Chinese partner do in a VIE? How can you manage the risks when you cooperate with the Chinese partner?
- What are the external risks for a VIE?