Appendix 1. Definition and Classification of Enterprises by Registered Status

The registration status of enterprises is classified into three categories: domestic-funded enterprises, enterprises with investment from Hong Kong, China, Macau and Taipei,China, and enterprises with foreign investment, following the registration status of enterprises by industrial and commercial administration agencies. Domestic–funded enterprises include state-owned enterprises, collective enterprises, cooperative enterprises, joint ownership enterprises, limited liability corporations, share-holding corporations, private enterprises and other enterprises. Included in the enterprises with investment from Hong Kong, China, Macau and Taipei,China and enterprises with foreign investment are joint-venture enterprises, cooperative enterprises, sole investment enterprises and share-holding corporations. For government agencies, institutions and social organizations that are not requested to register in industrial and commercial administration agencies are classified mainly by sources of funds and management form.

1. State-owned enterprises refer to non-corporation economic units where all assets are owned by the state and which have registered in accordance with the Regulation of the People's Republic of China on the Management of Registration of Corporate Enterprises. Excluded from the category are sole state-funded corporations that are limited liability corporations.
2. Collective-owned enterprises refer to economic units where the assets are owned collectively and which have registered in accordance with the Regulation of the People's Republic of China on the Management of Registration of Corporate Enterprises.
3. Cooperative enterprises refer to collective economic units where the capital comes mainly from employees in the form of shares, with a certain proportion of capital from the outside, where production is organized on the basis of independent operations, independent accounting for profits and losses, joint work, democratic management, and a distribution system that integrates remuneration according to work and dividends according to capital share.
4. Joint-ownership enterprises refer to economic units established by two or more corporate enterprises or corporate institutions of the same or different ownership, through joint investment on the basis of equality, voluntary participation and mutual benefits. They include state joint ownership enterprises, collective joint ownership enterprises, joint state-collective enterprises, and other joint ownership enterprises.
5. Limited liability corporations refer to economic units established with investment from 2- 50 investors and registered in accordance with the Regulation of People's Republic of China on the Management of Registration of the Corporation, depending on its share of investment, and the corporation bearing liability to its debt to the maximum of its total assets. Limited liability corporations include exclusive state-funded limited liability corporations and other limited liability corporations.
6. Share-holding corporations refer to economic units registered in accordance with the Regulation of People's Republic of China on the Management of Registration of Corporations, with total registered capital divided into equal shares and raised by issuing stocks. Each investor bears limited liability to the corporation depending on shares held, and the corporation bears liability to its debt to the maximum of its total assets.
7. Private enterprises refer to profit-making economic units invested and established by natural persons, or controlled by natural persons using employed labor. Included in this category are private limited liability corporations, private share-holding corporations and private partnership enterprises and private-funded enterprises registered in accordance with the Corporation Law, Partnership Enterprises Law and other regulations on private enterprises.
8. Other domestic-funded enterprises refer to domestic-funded enterprises other than those mentioned above.
9. Cooperative Enterprises with Funds from Hong Kong, China Macau and Taipei,China are established by investors from Hong Kong, China, Macau and Taipei,China with enterprises in the mainland of China in accordance with the Law of the Peoples Republic of China on Sino-foreign Cooperative Enterprises and other relevant laws, where the investment or provision of facilities, and the share of profits and risks is stipulated in the cooperative contract.
10. Enterprises with Sole (exclusive) Investment from Hong Kong, China, Macau and Taipei,China refer to enterprises established in the mainland of China with exclusive investment from investors from Hong Kong, China, Macau and Taipei,China in accordance with the Law of the People's Republic of China on Foreign-Funded Enterprises and other relevant laws.
11. Share-holding Corporations Ltd. with Investment from Hong Kong, China, Macau and Tapei,China refer to share-holding corporations established with the approval from the Ministry of Foreign Trade and Economic Relations in line with relevant state regulations, where the share of investment from Hong Kong, China, Macau or Taipei,China business people exceeds 25% of the total registered capital of the corporation. If the share of investment from Hong Kong, China, Macau or Taipei,China is less than 25% of the total registered capital, the enterprise is classified as a domestic-funded share-holding corporation.
12. Joint-venture Enterprises with Foreign Investment refer to enterprises jointly established by foreign enterprises or foreigners with enterprises in the mainland of China in accordance with the Law of the People's Republic of China on Sino-foreign Joint Venture Enterprises and other relevant laws, where the share of investment, profits and risks is stipulated in the contract.
13. Cooperative Enterprises with Foreign Investment refer to enterprises jointly established by foreign enterprises or foreigners with enterprises in the mainland of China in accordance with the Law of the People's Republic of China on Sino-foreign Cooperative Enterprises and other relevant laws, where the investment or provision of facilities, and the share of profits and risks is stipulated in the cooperative contract.
14. Enterprises with Sole (exclusive) Foreign Investment refer to enterprises established in the mainland of China with exclusive investment from foreign investors in accordance with the Law of the People’s Republic of China on Foreign-Funded Enterprises and other relevant laws.
15. Share-holding Corporations with Foreign Investment refer to share-holding corporations established with the approval of the Ministry of Foreign Trade and Economic Relations in line with relevant state regulations, where the share of investment of foreign investors exceeds 25% of the total registered capital of the corporation. If the share of foreign investment is less than 25% of the total registered capital, the enterprise is classified as domestic-funded share-holding corporation.

The views expressed in this paper are the views of the author/s and do not necessarily reflect the views or policies of the Asian Development Bank Institute nor the Asian Development Bank. Names of countries or economies mentioned are chosen by the author/s, in the exercise of his/her/their academic freedom, and the Institute is in no way responsible for such usage.





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