Corporate Entities in the PRC

This article is intended to provide a general guide to the subject matter. Specific advice should be sought about individual circumstances. Further information or advice may be obtained from Linklaters & Paines, Hong Kong office, 14th Floor, Alexandra House, Chater Road, Hong Kong; telephone: (852) 2842 4888; fax: (852) 2810 8133; contact David Mullarkey or Jeremy Parr.

Concept of a corporation and legal person

The concept of a corporation in common law countries is mirrored by the concept of a legal person under PRC law. Under PRC civil law, the subjects of civil law incurring civil rights and liabilities can either be individuals or legal persons.

There are a number of types of legal persons that can exist under PRC law. The most unusual feature of the law in this respect is that generally, each type of legal person structure is governed by a different regulatory regime, which would depend on who the owners of such legal persons were, whether they be the state,