Be a bit adventurous when making investment in China

For any foreign investors initially making foreign direct investment in China, it must be a real adventure and challenge as China is a country with unique history, culture that are alien to any newcomers from outside of China.

As always till now, we as legal advisors for foreign clients, esp, those relatively big companies with serious commitment to Chinese…

China MOFCOM and SAFE issued new rules for foreign invested investment companies

On December 8, 2011, China Ministry of Commerce and Chins State Administration of Foreign Exchange jointly issued a new circular further regulating the business of foreign invested investment companies.

A foreign invested investment company refers to a foreign invested company that is engaged in direct equity investment acitivities in China, often employed…

Legal issues regarding dormant investment by foreign investors in China

Just came across an article on the Internet, entitled "Protection for the Rights & Interests of Dormant Shareholders" discussing the protection of legal interests of dormant shareholders. While this article cast some lights on the issue, but some of its points do not apply to foreign investors being a "dormant shareholder". For example, it claimed that…

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: …

Your alternative business presence in China: representative office and branch

While the establishment of foreign invested enterprises seems to be the mainstream option for most foreign investors to make business presence in China, there are actually two other options for that purpose, namely, the representative office and enterprise branch.

1. Representative Office

Dated back to year of 1980, the State Council of China promulgated…