The most mature structure of overseas listing.
HAVE YOU EVER FACED THE FOLLOWING PROBLEMS?
VIE STRUCTURE HELPS YOU
VIE is an abbreviation for Variable Interest Entity. A variable interest entity (VIE), as reported by the U.S. Financial Accounting Standards Board (FASB interpretation No. 46) is an entity that an investor has a controlling interest in, but this controlling interest is not based on a majority of voting rights. VIEs are subject to consolidation under certain conditions.
If a company would like to achieve the domestic equity to be listed overseas, the consolidated statement is the prerequisite for auditors to conduct financial audit.
As VIE is a fully foreign-owned enterprise that achieves actual control over the domestic operating entity by signing a series of agreements with the domestic operating entity and its shareholders, the following agreements are generally required to ensure the effectiveness of the structure; the exclusive technical support and advisory services agreement; loan agreements or other financial support agreements; equity pledge agreements; management agreements; equity agreements and so on.
VIE structure procedures:
- Individual shareholders in China set up offshore holding company
- Set up overseas listed entities by Offshore holding companies established by individual shareholders in China and other investors.
- Overseas listed entities directly or indirectly set up wholly foreign-owned enterprises (WFOE) in China
The above-mentioned wholly foreign-owned enterprises and domestic operating entities sign a series of control agreements to achieve the actual control of domestic operating entities.