On July 27, Llinks Law Offices ("Llinks") successfully held a seminar "Llinks x VIEOLS Insights: Establishment of Offshore Red Chip Structure" in Shanghai. The seminar was co-chaired by Vivian Hu, Senior Partner of VIEOLS Group, Ula Li, Business Development Manager of VIEOLS Group, and Zhang Chenjiao, Contractual Partner of Llinks Corporate Department. The seminar mainly focused on two topics: (1) the introduction of VIE structure and critical steps in forming a VIE; and (2) restructuring schemes of red-chip structure with existing domestic structure and practical cases sharing.
Ms. Ula Li, Business Development Manager of VIEOLS Group, mainly introduced (1) VIE structure types; (2) critical steps in forming VIE structures and the basis for developing respective schemes; (3) checklist for materials and expected time of each step of VIE structure creation. The three sections provided a detailed and in-depth introduction to the VIE structure and its practical implementation.
Leveraging on her extensive practical experience, Ms. Vivian Hu, Senior Partner of VIEOLS Group, elaborated on the forming steps of VIE structures and the basis and rationale for designing related schemes and shared her insights in the subtle differences among local policies gained from practical cases of creating such VIE structures in varying regions.
Ms. Zhang Chenjiao, Contractual Partner of the Llinks Corporate Department, mainly shared her deep understanding of red-chip restructuring schemes against the background of existing domestic structure, covering the routes enabling domestic natural persons and institutional investors to transfer their domestic rights and interests to offshore entities, related party M&A issues, share premium reduction and distribution to foreign shareholders, the alignment of rights vested in domestic and foreign entities, the assumption of restructuring costs, the restructuring arrangements from a tax perspective and other legal issues, and further introduced and shared relevant practical cases with participants.
After the sharing of the speakers, on-site and online participants and the presenters had a lively discussion on practical issues in the process of building a red-chip structure, and actively expressed their insights. The seminar played a positive role in providing lawyers and other peers with a deeper understanding of the hot issues and difficulties in setting up red-chip structure schemes and in exchanging valuable experience.
About Llinks
Founded in 1998, Llinks is a leading PRC law firm focusing on legal services in the commercial field and is characterized by its expertise and capability in providing one-stop services. Llinks has always been at the forefront of the equity investment business. We have a deep understanding of the legal requirements related to equity investment transactions pursuant to PRC laws, regulations, and regulatory authorities, as well as a comprehensive understanding of the prevailing practical requirements in the equity investment industry. For a variety of different projects, Llinks has made many breakthrough explorations and solutions under the existing framework of PRC law, and has always insisted on providing professional services tailored to the specific requirements of clients for equity investment in PRC. In the field of equity investment, Llinks advises domestic and foreign angel investors, venture capital funds, private equity funds, government guidance/industry funds, fund of funds, and strategic investors on all forms of fund formation and fundraising (including RMB funds, joint venture funds or offshore funds, etc.), and assists in the investment, management, and exit of their subsequent projects. Also, Llinks represents emerging and developing enterprises in their financing, as well as representing many domestic and foreign enterprises in various financing projects applying various structures. Llinks not only provides practical solutions to satisfy clients' legal needs, but regularly undertakes the leading and coordinating roles in PE projects to ensure smooth progress, which is highly recognized and appreciated by our clients.
About VIEOLS
Established nearly 10 years ago, VIEOLS is a brand specialized in the setting-up of various legal structures at home and abroad, registration of overseas companies, structure design of overseas trusts, domestic and foreign enterprise financing and listing. Headquartered in Shanghai, VIEOLS is equipped with a professional, responsive and efficient service team. The company has also launched its offices in Hong Kong and Beijing and has employees performing business duties in Shenzhen, Hangzhou and Singapore. With years of deep experience in the business service area and a keen sense of industry, VIEOLS has continuously improved its service quality and earned deep trust from customers. VIEOLS has maintained long-term cooperative relations with many domestic enterprises, investors, law firms, and accounting firms, and has provided full- services for the listing of a large number of enterprises. As a leading enterprise service provider in PRC, VIEOLS is committed to providing clients with diversified professional services and customized follow-up services.
