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Key question: will Chinese startups be required to register as US companies :)
by echan00 8y ago
Key question: will Chinese startups be required to register as US companies :)
- seanmcdirmid 8y agoI'm betting that they will be using Chinese capital for Chinese start-ups, so there won't be any weird foreign registration requirement. It makes more sense because China still has a lot of money sloshing around looking for something to do, and YC China will look appealing in that regard, so no FDI will be needed. But that is just a guess by an amateur, we have to wait to see how this turns out.
- echevil 8y agoNope. There’re tons of Chinese startups already with or without YC. Would US startups be required to register as Chinese companies if they receive Chinese VC money?
- seanmcdirmid 8y agoThe US is open to arbitrary FDI so it doesn't matter. China's laws are more...complicated. For example, you can't give stock options to non-Chinese employees if your company is Chinese and not already listed, see https://www.chinalawblog.com/2018/03/china-scam-week-part-4-the-china-stock-option-scam.html https://www.chinalawblog.com/2018/03/china-scam-week-part-4-.... I'm not aware of any foreign funded startups in China currently. I mean, there must be some small players with private foreign funding, but it is so easy to get Chinese funding I'm not sure why anyone would even bother.
- bgee 8y agoMost big tech companies (Baidu, Tencent, Alibaba) in China has received foreign funding when they were "startups". See VIE Structure [0] (in Chinese). [0]: https://www.zhihu.com/question/19634851/answer/13095653 https://www.zhihu.com/question/19634851/answer/13095653