How to build a VIE architecture，How many BVI companies and Cayman companies need to be registered?

How to build a VIE architecture，How many BVI companies and Cayman companies need to be registered? Why do large companies choose to register companies in Cayman? Based on past records，Asian tycoon Jiacheng reorganizes its group companies，And moved the reorganized company registration location from Hong Kong to the Cayman Islands。Country Garden、Shimao Real Estate、rather、Anta、Xtep，Baidu、Alibaba、focus media、Renren、Qihoo 360…these companies we are familiar with are all registered companies in Cayman。

The world's 25 largest banks have subsidiaries or branches in Cayman。over the past 20 years，Among the 50 mainland family companies listed in Hong Kong with the largest asset range，A total of 44 companies are registered in the Cayman Islands。20091,145 companies were listed in Hong Kong and 388 were registered in Cayman.。2010In the first eight months, 44 companies were listed in Hong Kong and 31 were registered in Cayman.。

(Cayman Company Registration、BVI company registration and construction of VIE structure) 1、What is VIE architecture VIE(VariableInterestEntity)，variable interest entity，Also known as "agreement control" refers to foreign investors controlling domestic operating entities through a series of agreement arrangements.，An investment structure that obtains economic benefits from domestic operating entities without acquiring equity interests in domestic operating entities。

The VIE structure is usually used by foreign investors to invest in operating entities in areas where foreign investment is restricted or prohibited in China.。At the same time, the VIE structure is also an investment structure commonly used by these domestic operating entities to achieve overseas listings.。

It is currently recognized that Sina first created the VIE model in 2000 when it went public in the United States.，This model has been recognized by the US GAPP，And specially created the "VIE Accounting Standards" for this purpose，This model has since been widely used by Chinese companies listed overseas.。two、Reasons for VIE structure to build VIE structure，主要是为了绕开三个限制。

1. 直接以注册在中国的公司去境外上市存在障碍这里存在两种原因，一种原因是境外交易所如纽交所、港交所等接受的注册地不包括中国;另一个种原因是，即使境外交易所接受注册在中国的公司，但中国公司赴境外上市必须得到中国证券监管部门的审批同意，而现实中除了H股外，此前赴境外上市获得中国监管部门审批同意的概率非常低。

为规避这一个限制，就需要上市主体公司在境外注册公司，通常会选择开曼(Cayman)等地，主要是因为这些地方是避税天堂且法律完善。

1. Mainland China’s restrictions on Internet communications(TMT)In theory, there are restrictions on the entry of foreign capital in some industries, including，After registering a company abroad，You can directly choose foreign investment to control operating entities in China.，That is, WFOE direct equity investment in domestic companies in mainland China，However, due to the restrictions on the entry of foreign capital in the industries in which domestic companies operate,，Therefore, a series of agreements were designed to lock in the control of WFOE and its overseas shareholders over the management rights of domestic companies.，And this design is in line with listing on overseas exchanges

Require

of。

1. "Order No. 10" has been restricted since 2006 when China's Ministry of Commerce and other six ministries and commissions jointly issued the "Regulations on the Mergers and Acquisitions of Domestic Enterprises by Foreign Investors" (referred to as "Order No. 10")，Provisions on “related mergers and acquisitions”，It is regarded by the industry as tightening the approval of indirect overseas listings of Chinese domestic companies (related mergers and acquisitions are a commonly used transaction structure for Chinese domestic companies to raise funds overseas)。

In view of the fact that after the promulgation of "Order No. 10"，Few companies have obtained approval from the Ministry of Commerce for “related-party mergers and acquisitions”，一些非外资投资限制的企业也开始尝试采用VIE方式搭建境外融资架构，以避免将其境外融资架构根据《10号令》报送中国商务部审批。

three、VIE架构的搭建VIE架构的搭建主要分为如下几个步骤：

1. 国内创始人股东设立离岸公司（例如BVI公司）。Generally speaking，每个股东都需要设立一个单独的离岸公司(Registration is simple，高度保密)，这样做将来取得的收益能更好的做税务安排、进行股权转让时也更加灵活。
2. 在开曼设立离岸公司作为上市主体(开曼公司免税，且具有英美法系

Advantages

，英美澳新(New Zealand)港都属英美法系)。

1. 开曼公司设立香港公司，香港公司能为税务筹划和未来资本重组提供便利。
2. Hong Kong companies set up domestic foreign-funded companies in the territory，i.e. WFOE company，The subject of the agreement to exercise control over mainland operating companies。
3. Domestic foreign-funded companies sign agreements with domestic-funded companies，These agreements mainly include："Equity Pledge Agreement"、"Business Operation Agreement"、"Exclusiveness and Service Agreement"、"Loan Agreement" and "Entrusted Management Agreement"、"Shareholder Voting Agency Agreement"、《独家选择权协议》等。

Four、VIE架构的拆除2014年暴风影音拆除VIE架构A股上市创造了市值神话，促使了一波中概股拆除VIE架构回归A股的热潮。

简单来说VIE架构的拆除大致可以分为以下四个步骤：

1. 内资对WFOE公司进行全资收购，使之变为内资企业；
2. 对外资拥有的股份进行回购；
3. 相关协议的解除；
4. 境外公司注销。one、注册开曼群岛公司

Advantages

：

1. Registration is simple,只需一位股东、一位董事，且股东和董事可是同一人。
2. 注册资本50000美金，且不需验资。
3. 公司业务经营地不在当地，可不用在当地交税，可用开曼公司投资国内。
4. 股东资料保密。
5. 公司名字选取自由。
6. 知名度高，大陆大型民营企业巨头或一些国企如阿里巴巴、Baidu、Jingdong、联通、新浪、联想等注册地也都在开曼群岛。
7. 开曼群岛离岸公司可选择发行记名或不记名股票，记名股票与不记名股票之间可以互相交换。
8. 用于公司架构搭建、重组，易于海外上市。

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