The Cost Of Setting Up A Wfoe In China By: Chris Devonshire-Ellis | - Our firm, Dezan Shira & Associates, has been involved with legal establishment and tax work in China for nearly 20 years. In fact, the practices 20th birthday is November next year, so well be having some parties to celebrate. Over the years, we have constantly been engaged in setting up wholly foreign owned enterprises (WFOEs) for our clients and, during that time, weve seen considerable changes to how WFOEs can operate, and what they can do. Weve also written about WFOEs many times ... Tags:WFOE, China, investment, business
When Chief Representatives Can Be Barred From Office By: Chris Devonshire-Ellis | - An interesting legal point cropped up as a result of our recent commentary concerning chief representatives in China. The chief rep is of course the person who is legally responsible for the activities of a China representative office (RO), and the piece outlined the various roles and responsibilities the chief rep has to undertake, as well as the qualifications for doing so. Its a position I am very familiar with, having been chief rep of our firm (and subsequently the legally responsible pe ... Tags:China, business, FDI, China market research
What It Takes To Set Up A Company In China By: Barker Hicks | - When foreign investors want to set up company in China it is advisable for them to review their investment plans and ideas to ensure that the business entity they choose will be in accordance with the China investment regulations and World Trade Organization market access regulations. This can be achieved with the assistance of Chinese consultancy firms who are familiar with the local market. These firms will break the language barrier and make you understand the business culture, the government ... Tags:Set Up Company in China
Important Points To Remember When Registering A Company In China By: Barker Hicks | - As a foreign investor there are China Company registration guidelines that are provided by Chinese consultancy firms to assist you register a business entity in China. These regulations vary from city to city but there are those that are common in China.
In China company registration it is important to note that only Chinese names are used and that English names are used for reference purposes only. The registered capital for a business is related to the business sector. This means ... Tags:China Company Registration
Business Setup In China "" Shanghai Wfoe Setup By: capitaltaxltd | - Business setup in China is a very popular these days with the growing economy in this country. Shanghai WFOE setup is something that hundreds of people are considering. If you are not sure how to do things like this it can be quite frustrating. Lets talk a little bit about why some people may choose Shanghai WFOE setup when they are interested in business setup in China.
The population in Shanghai is 19,213,200 and is the most populous city in China. This city has experienced fas ... Tags:Tax Consultants china, Tax advice china
"what Can I Do With An Offshore Company?" By: Lawrence Smith | - Many people have asked our firm: What can I do with an offshore company?
The question they should really be asking is: What can I do with my own company?
Setting up an offshore company is nothing more than incorporating your own company outside of the country where you currently reside. The only difference between your own company onshore and your own company offshore, is one must follow the laws of the land in which the company was incorporated. This can sometimes caus ... Tags:offshore company registration, offshore company formation
When To Upgrade Your China Ro To A China Wfoe By: Chris Devonshire-Ellis | - As we approach the end of 2010, annual audits loom for all foreign invested enterprises in China. The State Administration of Taxation employs a fiscal year to denote reporting requirements, and this then makes it an excellent time to consider the future of your business if still using a representative office in China.
Chinas State Council recently issued new regulations to strengthen the administration of resident representative offices (ROs) of foreign enterprises in Chin ... Tags:China, WFOE, business,
Avoiding Post Incorporation Problem's With China Wfoe's By: Chris Devonshire-Ellis | - One of the frustrating issues about advising corporate clients in China is how many of them, prior to seeing our firm, are so often badly advised on the China establishment procedures. Far too often, assumptions are taken that setting up a wholly foreign-owned enterprise (WFOE), for example, is a standard application procedure. Weve even seen cookie-cutter models used both by lower end firms and even China government investment departments keen on making it as easy as possible (for them ... Tags:business, China, China WFOE, investment, Asia
Analysis And Suggestions On Legal Procedures For Foreign Capital M&a By: Sino-Link Consulting | - Company AAB was registered in the United States. With the business development, AAB wants to enter the Chinese market. After exploration in China, AAB wants to merge Company BBC which was registered in Beijing. AAB has three merging plans at the moment: 1. Purchase BBCs total Stock Equity directly. 2. Establish a foreign-invested enterprise (WFOE) and purchase BBC's total Stock Equity through the WFOE. 3. Establish a foreign-invested enterprise (WFOE) and then use the WFOE to merge BBC. ... Tags:Foreign Capital M&A foreign-invested
A Wholly Foreign-Owned Entreprise (WFOE) refers to businesses in China which are 100% foreign-owned, as opposed to joint ventures which involve at least one domestic (mainland Chinese) partner.
WFOEs were previously subjected to strict restrictions, such as the capital requirements which were set at levels within the resources of only large multinational and medium-sized firms. However, the positive effects of Foreign Di ... Tags:China WFOE, China WOFE, China Wholly Owned Foreign Enterprise
Triggering Permanent Establishment In China By: Hank Bourg | - China has many foreign companies operating within its borders. Some of these enterprises have permanent establishment in China while others do not. In either case, these enterprises are taxed on their China source income.
In general, only their China source income is taxable in China, with one notable exception. If the foreign source income is effectively connected with the permanent establishment (PE), the income is taxable in China. Effectively connected means that the ... Tags:China, business, accounting, tax, investment, Asia
Establishment Of Wholly Foreign-owned Enterprise In China By: Sino-Link Consulting | - Due to the reform and opening up, foreign direct investments in China are mainly as follows: setting up wholly foreign-owned enterprises, Sino-foreign equity joint ventures and cooperative development, etc. In recent years, the legal system in China and the business climate are changing in favor of the WFOE, especially after China joined WTO. WFOE is a limited liability company wholly owned by foreign investors.
Joint Venture Contracts In China By: Gregory Sy | - As other world markets decline, China has become relatively safe destination for FDI. Statistics show that from their high point in the late 80's, Joint Ventures have declined in popularity in favor of the Wholly Foreign Owned Enterprise (WFOE) structure. This is a result of both freer markets, as well as a general preference for companies to wholly own and control their operations in China.
The new policy outlines that only Chinese products and services may be used for government procurement except when certain products or services are not available within the country or could not be bought on reasonable commercial or legal terms, reports the Financial Times.
The move is in response to reports from local industry associations c ... Tags:China, trade, business
Global Manufacturing In China Changes Tune As Exports Slow And India Rises By: Chris Devonshire-Ellis | - Subtle changes are occurring in the global and domestic perception of China as a viable cheap manufacturing source as the country grapples with the imbalances caused by its export driven economy. While much of Chinas foreign direct investment over the past twenty years has come from initially one source the development of foreign invested manufacturing businesses taking advantage of Chinas cheap labor, land and infrastructure costs to then sell on to international markets this ... Tags:China, business,
The Foreign Corrupt Practices Act: Implications For U.s. Businesses In China By: Hank Bourg | - The 1988 Trade Act by the Congress of the United States directed the U.S. Attorney General to provide guidance to potential exporters and small business regarding the Foreign Corrupt Practices Act of 1977, an act all U.S. businesses operating in China need to be familiar with.
The FCPA prohibits the corrupt payment of money or bribes to foreign officials for the purpose of keeping or maintaining business. The FCPA also links in with several other U.S. acts, providing for fe ... Tags:China, business, corruption,
An Uncertain China By: Chris Devonshire-Ellis | - As the world shifts its political positions and emerging countries flex new found muscles in the aftermath of the global financial crisis, how has China reacted to the situation? As always when it comes to this enigmatic nation, the signs are mixed, and are not consistent. It is also becoming apparent, at least, that U.S.-China comparisons are not really valid. Should a comparison be made with any country, surely it would have to be with India. Not only are the two nations neighbors, they also h ... Tags:China, India
China Relaxes Rules For Overseas Investment By: Dezan Shira & Associates | - The Ministry of Commerce (MOC) released its first guidelines for overseas investment by Chinese companies on Friday. The document, encompassing some twenty countries approved by the central government to receive Chinese investment, are part of the ministrys strategy to assist Chinese companies abroad and come on the heels of last months relaxing of government requirements to invest abroad.
In March, the central government reduced the approvals process to provincial ... Tags:China, investment,
2009 Chinese Tax Regulations For Non-resident Enterprises By: Dezan Shira & Associates | - Tax registration and filing for non-resident enterprises in China is set to begin from March 1, 2009 while 2008 corporate income tax filing should be done by May 31, 2009.
Under SATs Decree 19 on Provisional Administrative Measures Governing Tax Collection on Contracted Projects and Provision of Services by Non-resident Enterprises, companies that contract in projects or provide services in China should register with the tax bureau where the project is located within 30 da ... Tags:China tax, China business, China law, China WFOE,
A Guide To Doing Business In China 2 - How To Set Up Your Office By: Kimberlie Hutson | - So you've realized how profitable it can be for your operation to set up business in China, you've done your research and you now have a list of contacts and practical locations. Now you need to set your office up and you've got a choice of three corporate structures to do this.
Un Initiative In Greater Tumen Region To Boost Northeast China By: Chris Devonshire-Ellis | - The Greater Tumen area the land mass that covers Northeast China, the Asian part of Russia, Mongolia, and North and South Korea has been earmarked for special development and investment incentive status by the United Nations.
China has already made commitments to this by hosting its own Heilongjiang International Investment Fair in Harbin last week, in which priority to developing eight key economic areas was confirmed. These included the Hadaqi Industrial Corridor, Eastern Coal ... Tags:China WFOE, China investment, China business, China legal
The measures will also include a series of tax and fiscal policies and intellectual property rights protection, reports Xinhua. Businesses dealing with information technology, training, production materials procurement, logistics, and advertising are qualified to be service outsource providers.
China S 2009 Anniversaries To Produce A Cautious Environment By: Chris Devonshire-Ellis | - With so much talk of the impact of the global financial crisis on China during 2009, and many predictions being made about it (one of the best being Jack Perkowskis), not much is being said about the impact that three anniversaries ,two of them unwanted, that China will have to cope with during the coming year.
With all of them falling into one specific year, China is sure to see an increase in internal military operations, an increase in overall security concerns, and a continua ... Tags:china business foreign direct investment legal advice
Chinese Market Entry Strategy In China By: jeya | - Dynasty Resources is your Gateway to business in China. We provide a full range of business services that help you enter the most exciting market on earth. Dynasty Resources, Inc. helps American and European companies establish offices in Nanjing, one of Chinas most thriving cities.
Business Venture Regulations - China By: Sunil K Kumar | - China business ventures in joint holdings are permitted in manufacturing, import/export and global sourcing as well as sales operations in China. In addition, a joint China business venture is also allowed to market its products through own sales network in China apart from import and export while being free to conduct global sourcing.
-Regulations for China Business for Import/Export and Global Sourcing
Start-up Checklist - China Company By: Kulveer | - Please read "China Company Start-up Checklist" Parts I and II before reading this article.
The following activities should also be undertaken as soon as possible after receiving the Business License:
(1) Obtain any Necessary Construction Permits
Procedures will vary according to locality and type of construction, but required documentation will likely include an Environmental Impact Assessment. Details can be provided to you by your examination and ... Tags:Internet Marketing, Joint venture, website promotions, online business, marketing
Establishing A Business Presence - Invest In China By: julybhisham | - Three primary investment forms are commonly used by foreign companies to establish a permanent presence in China -- the Sino-foreign Joint Venture, the Wholly Foreign Owned Enterprise, and the Representative Office.
Sino-Foreign Joint Ventures
This investment form requires the foreign company to team up with a Chinese partner. As Chinese companies are typically short on money (particularly hard currency), the foreign partner usually provides the bulk of the fundin ... Tags:Internet Marketing, Joint venture, website promotions, online business, marketing
Establishing A Business Presence Invest In China By: Kamal Kaushal | - Three primary investment forms are commonly used by foreign companies to establish a permanent presence in China -- the Sino-foreign Joint Venture, the Wholly Foreign Owned Enterprise, and the Representative Office.
Sino-Foreign Joint Ventures
This investment form requires the foreign company to team up with a Chinese partner. As Chinese companies are typically short on money (particularly hard currency), the foreign partner usually provides the bulk of the fundin ... Tags:Internet Marketing, Joint venture, website promotions, online business, marketing
China Business Venture Regulations By: DYLAN SUN | - China business ventures in joint holdings are permitted in manufacturing, import/export and global sourcing as well as sales operations in China. In addition, a joint China business venture is also allowed to market its products through own sales network in China apart from import and export while being free to conduct global sourcing.
-Regulations for China Business for Import/Export and Global Sourcing
The establishment of a Foreign Invested Company Limited by Shares (also known as a joint stock company) was designed to accommodate investors seeking to issue shares to the public or to list on the Shanghai, Shenzhen or foreign stock exchanges (under Chinese foreign investment law nomenclature, the Hong Kong Stock Exchange qualifies as a foreign stock exchange. Consequently, the establishment of FICLS is subject to stricter ... Tags:China, company, start-up, joint venture, investment, WOFE, WFOE, FICLS, corporation, shares
The following activities should also be undertaken as soon as possible after receiving the Business License:
(1) Obtain any Necessary Construction Permits
Procedures will vary according to locality and type of construction, but required documentation will likely include an Environmental Impact Assessment. Details can be provided to you by your examination and ap ... Tags:China, company, start-up, joint venture, investment, WOFE, WFOE
The following activities must be taken within 30 days of the issuance of the Business License:
(1) Engrave the Enterprise's Official Seal
This requires advance approval from the municipal Public Security Bureau (the police). Documents include: the original business license and a copy, letter of introduction signed by the Chinese partner, and Power of Attorney in favor of the person ... Tags:China, company, start-up, joint venture, investment, WOFE, WFOE
Although this checklist is primarily geared toward the establishment of Joint Ventures, it can be easily adapted to the establishment of Wholly Foreign Owned Enterprises (see the final section of this article) Keep in mind that the following list of documentation and procedures is not necessarily exhaustive. Industry-specific regulations complicate matters in some industries (for example, securities and insurance), examination and approval authoriti ... Tags:China, investment, company, joint venture, WOFE, WFOE, checklist
Most Foreign Invested Enterprises (FIEs) are governed by a board of directors and senior management. An exception exists for Cooperative Joint Ventures that the parties have chosen not to incorporate (these are governed by a management committee).
Powers: The Chairman, as the legal representative of the enterprise, has the power to legally bind the enterprise and bears significant responsibility for its acts and
omissions. Most of the power ... Tags:China, investment, FIE, foreign, joint venture, WOFE, management, board of directors
Invest In China - Establishing A Business Presence By: David Carnes | - Three primary investment forms are commonly used by foreign companies to establish a permanent presence in China -- the Sino-foreign Joint Venture, the Wholly Foreign Owned Enterprise, and the Representative Office.
Sino-Foreign Joint Ventures
This investment form requires the foreign company to team up with a Chinese partner. As Chinese companies are typically short on money (particularly hard currency), the foreign partner usually provides the bulk of the funding ... Tags:invest, China, company, joint, venture, wholly, enterprise, represntative, office, WOFE, WFOE
