risk of loss of freedom for serving as legal representative of a company in China

I have written a quite comprehensive post explaining the concept of legal representative of a Chinese company (click here for details).

Just recently, a new instance of foreigners being banned from leaving China prompted me to remind expat employees in China of the risk of loss of freedom for serving as legal representative of a company in China.

It is a simple…

China poised to end the exemption of individual income tax on dividends received by foreign individual investors

From early nineteen nineties, China has kept the favourable tax treatment for foreign individual investors pursuant to which dividends received by such individual foreign investors is exempted from paying China’s individual income tax, a strong incentive to encourage foreigner to invest in China.

On February 3, China cabinet announced its plan…

Using rural lands for industrial activities in Shanghai,China

A client came to me with a question regarding the use of a rural land in the suburbs of Shanghai.

The client has set up a wholly foreign-owned company in the outskirts of Shanghai back in 2001, engaged in industrial manufacturing activities. Instead of obtaining the state-owned land use right, the WFOE ventured to take up a site with existing building and facilities.…