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Foreign-owned corporations and their foundations

foreign owned corporation building

Definition of a foreign-owned corporation

A foreign-owned corporation or foreign-invested enterprise is a corporation that comes from a foreign country. So, if a company from France wants to participate in Germany, it will establish a company in Germany. This would fall under the appellation foreign-owned.

Behind the concept

For the most part, the states set up strong regulations on these companies. It can be difficult for them to fully benefit from the attractive features of the country that they are established in.

This method is mostly used in Asian countries. Especially in China, where it became a phenomenon. Those companies have an important role in the economy of this country.

How do they use foundations

A corporate foundation has many utilities for a company. For a foreign-owned corporation, creating a foundation can be more than just a moral incentive or brand identity reasons. Depending on the country, the regulations’ benefits of a foundation can be a real motivation for companies to have more rights.

Useful links

https://www.investopedia.com/terms/f/fie.asp