An Austrian limited liability company: Gesellschaft mit beschränkter Haftung (GmbH).
Alternatively, but less frequently used, an Austrian branch of the overseas company.
Wholly foreign-owned enterprises (WFOE) and Sino-foreign equity joint venture (EJV). WFOEs are currently chosen in more than 80% of cases.
Starting from January 1, 2020, the new Foreign Investment Law abolishes and unifies laws and regulations applicable to foreign investment companies, leading to significant legal changes. It is foreseeable that the general investment environment of China will become more business friendly with less restriction in future. But the change of law also brings some legal problems (eg existing EJV deals are required to be re-negotiated by following the same corporate governance structure of domestic companies for which a five-year grandfathering period is given).
Most commonly, foreign companies set up a limited liability company (s.r.o.) or a joint-stock company (a.s.) to manage their Czech operations.
Alternatively, a Czech branch of a foreign company may be established.
England & Wales
Private limited company (Limited).
Branch (formally known as a UK Establishment) of the overseas company (Used much less frequently than a Limited company).
Wholly owned simplified joint stock company (Société par Actions Simplifiée or SAS).
A limited liability company (Société à Responsabilité Limitée or SARL).
- Limited liability company – Gesellschaft mit beschränkter Haftung (GmbH).
- Branch of the overseas company (used much less frequently than a GmbH since this usually constitutes a permanent establishment of the overseas company in Germany, for which the overseas company is taxable and because liabilities incurred by activities of the branch will directly attribute to the overseas company.)
Private limited company.
Branch of the overseas company (used much less frequently than a limited company).
The most common company form among foreign investors is the limited liability company (in Hungarian: 'Korlátolt Felelősségű Társaság', in short: Kft).
Establishing a branch office (in Hungarian: 'Fióktelep') is the second most common form of entering the Hungarian market.
- Private limited company (Limited).
- Branch (external company) of the overseas company (used much less frequently than a Limited).
Private limited liability company - Besloten Vennootschap (B.V.)
Branch of the overseas company. Used much less frequently than a Besloten Vennootschap (B.V.)
The most preferred type of entity is a limited liability company – spółka z ograniczoną odpowiedzialnością (sp. z o.o.)
Also, but less frequently, a joint stock company – spółka akcyjna (S.A.) is chosen.
Private limited company
- Most common and preferred type
- Shareholders must not be more than 50
- Suffix of the entities are usually “Private Limited” or “Pte Ltd”
- Usually a temporary extension to carry out market exploratory activities
- Prohibited from carrying out any commercial or revenue making activities
- An extension of the foreign company and lacks legal identity of its own
- Can engage in commercial or revenue making activities
- Less common than private limited company
A Slovak limited liability company – spoločnosť s ručením obmedzeným (“s.r.o.”) (LLC) or a Slovak joint-stock company (“akciová spoločnosť”, “a.s.”) (JSC).
Used less frequently is a Slovak branch office of a foreign legal entity – organizačná zložka (Branch).
Since 2017 – a simple joint-stock company – (“jednoduchá spoločnosť na akcie”, “j.s.a.”) (JSA) - a new type of a company with purely electronic registration of all shares to which different rights may be attached (there is no explicit limit on these rights) and their transfers and with possibility of statutory drag-along, tag-along and shoot-out agreements.
United Arab Emirates
The preferred type of legal entity for most foreign investors in the UAE is the limited liability company in the mainland or in one of the international tax-free zones (LLC).
A common alternative is establishing a branch office of the foreign company, and some professional service providers can register a so-called 'civil company' in the UAE mainland.