Practical tips about setting up a foreign invested travel agency in Shanghai China

Since China relaxed its rules about setting up foreign-invested travel agency by enacting the Regulation on Travel Agency (the “Regulation”) in February of 2009, there have been a flurry of interests aroused thereby and we have been approached frequently by potential foreign clients inquiring about how to set up their own travel agency in China.…

Setting up a foreign invested travel agency in China

To meet its undertakings upon the entry into the WTO, China has promulgated the Regulation on Travel Agency (“Regulations”), effective as from May 1, 2009, which also incorporates rules for setting up foreign invested travel agencies (“FITA”). Previous regulations issued by Ministry of Tourism (“MOT”) and Ministry…

Trial Measures for the Investment in and Establishment of Sino-Foreign Equity Joint Venture Enterprises and Sino-foreign Cooperative Joint Venture Enterprises by Domestic Natural Persons in Pudong New Area

Trial Measures for the Investment in and Establishment of Sino-Foreign Equity Joint Venture Enterprises and Sino-foreign Cooperative Joint Venture Enterprises by Domestic Natural Persons in Pudong New Area

Promulgating Institution: Shanghai Administration of Industry and Commerce; Shanghai Pudong New Area People’s Government
Document Number:…

You may now set up a joint venture entity with a PRC citizen in Pudong, Shanghai

For many years, when a foreign natural person or entity wants to set up a joint venture in China, he can only find a Chinese entity as partner instead of a Chinese natural person. It is not clear why China has maintained this rule for so many years while in practice there are easy ways of circumventing this restriction.

However, with the adoption of PRC Foreign Invested…

Employment with a representative office in China

Frequently I was inquired by people working in a representative office (hereinafter “Rep Office”) of a foreign Company about labor & employment issues. Recently I have also represented a foreigner, a representative in a Rep Office of a foreign architecture firm, in a labor dispute. I feel it necessary to clarify some of the rules regarding…

China to expand work injury coverage to its workers

China state council is considering revising the current Work Injury Insurance Regulation, according to news.

The major focus is on whether injury happening on the way to office or home should be regarded as work injury. Currently, it is provided in the regulation that injury caused by road accident involving motor vehicle (on the way to office or home) shall…

New rules for setting up representative office in China

On November 19, 2010, China Cabinet, the State Council, promulgated a new piece of regulation, entitled “Regulation on the Administration of Registration of Representative Offices of Foreign Enterprises”, overhauling and replacing the old rules that have been in operation as from March 15, 1983.

There are a number of notable changes in these…

Tort liabilities relating to employment-take domestic workers as illustration

In Shanghai, there are basically two ways of hiring an Ayi from market. (1) you find the Ayi by yourself or through a friend and you pay her directly and thus establish an employment relationship with the Ayi; (2) you hire the housekeeping/babysitting service from a company or firm in the market and the company sends their staff to your house but you pay the company…

Time limit on capital contribution to foreign investment enterprises (companies)

In China, a company (in this article we take the limited liability company, the LLC, for illustration), either domestic or foreign-invested, has to have its own registered capital in order to be recognized as a legal entity at law. As to the timing of capital injection, Chinese laws have treated domestic firms and foreign invested firms differently. To set …

The Political Divisions in China

An investment in China is often subject to regulation of more than one level of the governments. However, it is very often confusing to a foreigner to understand the political divisions through reading some scattered information in that regard. I will try to make my introduction accurate and comprehensive to help you understand this issue.

Bear in mind before…

The basic steps for setting up a foreign invested enterprise in China

1. the Catalogue of Industries for Guiding Foreign Investment in China

China has put in place for long a Catalogue of Industries for Guiding Foreign Investment in China (the “Catalogue”) which may from time to time be amended to reflect economic changes in reality. In this Catalogue, industries are basically classified into four types: encouraged,…

taxation measure to curb real estate market

Though there is plenty of moaning and groaning in the real estate market in China, due to the central government’s tight monetary policy, it seems the tether is going to be further tightened. In a new effort stepped up by the central tax ministry, a new circular was issued on April 7, 2008 regarding the prepayment of income tax by property developers.

The…

Shifts in real estate taxation affecting your investment

Recently this year saw a string of shifts in tax policies that affect businesses in China, in particular, foreign invested enterprises.

â…  City and Township Land Use Tax

At the end of the year of 2006, the state cabinet revised the Interim Regulation of the People’s Republic of China on the City and Township Land Use Tax and the revised version came…

Representative Office’s Taxation Issues in China

Representative Office’s Taxation Issues in China

Written by Yang, Shujuan

The most direct way to indulge into the China market is to set up local presence. Various forms of foreign investment vehicles are available for different business objectives and operations, including, among other things, equity joint ventures, cooperative joint ventures…

Pre-registration system in Chinese property law

1. Provision in the law

On October 1, 2007, the Property Law of China comes into effect, a landmark event in China’s legislation history and in the cause of establishing rule of law in China.

Among those shining points in this new law, I single out and introduce the pre-registration system for your reference.

Article 20 of the Property Law provides:

“the…

Lease contract registration

Recently one of our clients complained to us that the real estate exchange center (an authority in charge of real estate registration, “Exchange Centre”) refused to accept their lender-approved lease contract designed for their service apartment project simply because their lease had not adopted the Shanghai model lease contract form. Without…

Land Regulation Framework in China

1. types of land
According to the Land Law of the People’s Republic of China, effective as from January 1, 1999 (the “1999 Land Law”), land in China is basically categorized into three kinds, namely, agricultural land, construction land and unutilized land. The agriculture land refers to those directly used for agricultural production,…