Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 58

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 58
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 in the future, we may have to make more contributions to such plans for our
employees.

We intend to comply with the new regulations and
policies applicable to employee benefit plans set forth through time. As of the date of this report, we have signed written employment
contracts with all of our employees and paid all the benefits package as required by law. In addition, the PRC Individual Income Tax Law
requires companies operating in China to withhold individual income tax on employees’ salaries based on the actual salary of each
employee upon payment.

C. Organizational structure

Below is the Company’s corporate structure
chart as of the date of this report.

Variable Interest Entity Arrangements

In establishing our business, we have used a VIE
structure. In the PRC, investment activities by foreign investors are principally governed by the Guidance Catalog of Industries for Foreign
Investment, which was promulgated and is amended from time to time by the PRC Ministry of Commerce, or MOFCOM, and the PRC National Development
and Reform Commission, or NDRC. In June 2020, the MOFCOM and the NDRC promulgated the Special Administrative Measures (Negative List)
for Foreign Investment Access (2020 Version), or the Negative List, which became effective on July 23, 2020. In September 2024, MOFCOM
and NDRC promulgated the Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Version), or the Negative
List, which became effective on November 1, 2024. Industries not listed in the Negative List are generally open to foreign investment unless
specifically restricted by other PRC regulations. Our Company and WFOE are considered as foreign investors or foreign invested enterprises
under PRC law.

The business we conduct through the VIE is within
the category for which foreign investment is currently restricted under the Negative List or other PRC Laws. In addition, we intend to
centralize our management and operation in the PRC without being restricted to conducting certain business activities which are important
for our current or future business but are restricted or might be restricted in the future. As such, we believe the agreements between
the WFOE and the VIE are necessary and essential to our business operations. These contractual arrangements with the VIE and its shareholders
enable us to consolidate financial results of the VIE.

WFOE effectively assumed management of the business
activities of the VIE through a series of agreements which are referred