Selling stock/assets of our firm to Chinese company.

[Tardon]

Can I sell a company that was formed in the USA to a firm in China. Just transfer all the stock to them? Are there any restrictions with it being China.
Is it best to sell the assets or do a simple stock sale/transfer.
Mostly its the software and employees they want to buy.

We formed the firm 4 yrs ago, and a Chinese group, that has been a customer for us, has made an offer that we find interesting.

We are a small firm just 16 employees. Barely profitable currently.

[AFFA]

Re: Selling stock/assets of our firm to Chinese company.

I wish to inform you that if you are a registered corporate then you may sell your shares and with the change of shares, ownership in the corporation will change simultaneously. If you are not a registered corporation then your business firm is like sole proprietorship and you may sell your business after making an agreement and mentioning terms of sale. Generally there is no restriction on sale of a business to a foreigner.

AFF

[Wally]

Re: Selling stock/assets of our firm to Chinese company.

When you sell you will normally also have a tax advisor review the proposal and that will often generate how you further structure the final sale. Tax considerations can play a big role.

[TomH]

Re: Selling stock/assets of our firm to Chinese company.

No matter what the selling price you will also HAVE to have a lawyer that has done sales of companies before. There are many issues you have even thought about that will be dumped into the sale agreement.

[bowlen]

Re: Selling stock/assets of our firm to Chinese company.

Saw this in Google. I assume the same is basically true if we sell half to a foreign firm in Singapore?
There are no national security issues are there?

[olive]

Re: Selling stock/assets of our firm to Chinese company.

Yes same analysis.
Unless you are working with national defense or classified type products, there are no restrictions and tax issues will drive a lot of the structuring.