If anyone of such enterprises wants to be qualified as a corporation in accordance with conditions for a corporation in the host country, it has to be capitalized enough to qualify for a corporation, and have its own name, organizational structure, regulations and a site for doing business, as well as to take responsibility for civil cases. For it to be qualified as a corporate body, it also has to be registered with the organizations concerned. In this respect, a foreign-owned enterprise is different from a foreign enterprise. Generally, a foreign enterprise is a business enterprise which is established in accordance with the law of a foreign country and manages business activities with approval by a host country. For this reason, not a few countries hold that the category of foreign enterprises includes foreign companies, trading corporations and other economic organizations which have branch offices, permanent representatives or business agents in their territories, foreign companies, trading corporations and other economic organizations which are engaged in production, marketing and development activities in collaboration with their domestic companies, in addition to foreign companies which are engaged in construction, assembling, installation and surveying.
Foreign enterprises have their foreign nationalities.
Therefore, their home countries have their jurisdiction over their personnel and capital importing countries have territorial jurisdiction. This means that capital importing countries have their jurisdiction over their personnel as well as territorial jurisdiction over foreign-owned enterprises. A Foreign-owned enterprise is a business enterprise in which foreign investors hold a full amount of capital necessary for the establishment of an enterprise. In general, it is said that a foreign-owned enterprise is a business enterprise which is established by foreign investors who own all or greater part of capital necessary for the establishment of the company. In the latter case, each country has the following regulations.