Corporate Seal Fraud in China: the lesson learned from Tencent and Lao Gan Ma brawl

Just recently a piece of news has spiraled quickly among netizens in China. It is an interesting story between two most well-known Chinese companies: Tencent and Lao Gan Ma.

Tencent launches new social media apps for countering competition ...
WeChat is dominating every smart phone in China.
联名口红,魔性广告,老干妈为何在做辣酱的路上越走越偏?-看点快报
Lao Gan Ma Chili Oil, dominating Every China Family Tables

I. What Happened

On June 29, a court decision showed that Tencent had applied to…

China New Regulation on Cosmetics (I): Rules on New Raw Materials

Top 5 Application to Sell Beauty Products in China - Update 2020

On June 29, 2020, China officially published its long-awaited regulation on cosmetic industry, titled as “Regulation on Supervision and Administration of Cosmetics” (hereinafter “New Regulation“).

It is kind of a surprise to see how many changes have been made in contrast to the draft that was said to be passed at the meeting of…

Cross-border Estate Planning: China Round-Trip Investment Rules

To many, estate planning is just a part of family law practice having little involvement of corporate and investment laws. It is no longer true in today’s world when clients often have their major assets in the form of ongoing businesses, i.e., companies or corporations.

I. Why Round-Trip Investment Is Relevant

There has been growing demand among Chinese…

Update on Shareholder Liability in Regard of Subscribed Capital in a China Company

We should have written this post earlier.

On this blog, in old posts, we mentioned the shareholder liability in regard of their subscribed capital contribution:

Can company’s creditors go after shareholders who have not paid up subscribed capital?

Registered capital, the greater, the better? Not really!

The main point is that a creditor of a company may go…

My YouTube Channel (China Family and Business Laws) Came Online Today

I know I should have done this much earlier, as part of my digital marketing efforts. However, to launch a YouTube channel posting videos is so much different from just writing posts esp when I have to speak English in the video.

But I understand a live person in the video will present a much better impression on audience. People who may need our help may have serious…

Export Non-Special Purpose Cosmetics into China

Cosmetics are big business in China. There are quite a few aspiring fortune stories in cosmetic industry. One is about a celebrity couple launching a new facial masks business that garnered billions of RMB in a couple of years. Recently, a young man that wears makeups makes a big fame on online video platforms among girls and women.

January beauty launches new make-up, skincare, fragrance reviews
China non-special purpose

Selling Products Online in China? License Requirements

China markets are magnets to world business owners who want to sell their products to 1.4 billion Chinese consumers.

With China e-commerce developing so fast and pervasively that it has almost changed the mainstream shopping habits of Chinese society from bricks and mortars to online shops, to ride the tide, foreign businesses are looking into tapping that…

China to Overhaul Regulation on its Cosmetics Industry

Cosmetics are big businesses.

Image result for cosmetics

With China society getting more and more affluent, cosmetics consumption has been on steady rise over years, and all major brands in the worlds are now in China market. However, China’s regulation on cosmetics industry has been lagging far behind reality, indeed a drag on this industrial innovation and progress. Most …

China’s New Foreign Investment Law and its Implementation Regulation Taking Effect

China enacted its new overhauled Foreign Investment Law in March of 2019 amid trade war with USA, which has taken effect as of January 1, 2020, the day of yesterday.

As expected, China State Council shall step up the implementing rules to execute the Law passed by China Parliament or the People’s Congress. The Implementation Regulation was published …

China Foreign Investment Law and Cross-Border Inheritance and Estate Planning

China has enacted its long-awaited Foreign Investment Law this March but will only come into effect as of January 1, 2020. So far this law is warmly welcomed and hailed at large by the international communities.


Well, there are a lot of comments on the Law and its impact and implications on existing and future foreign investment in China. But hardly is there any…

Happy New Year of Pig from Landing Law Offices in Shanghai

In China, today is the first day of China lunar new year of pig.

The whole country is in a happy mood. A 7-day holiday has started from yesterday. A lot of celebration activities are going on in all parts of the country, from Beijing China Central Television to local TV stations, from big cities to small towns.

China Lunar New Year or Spring Festival is a time for family…

Inheritance of Corporate Shares of a China Company (IV)

We have already written a few articles regarding inheritance by foreigners of corporate shares (a stock company limited by share) or equity interests (a general limited liability company) in a China company, where typically the deceased is a Chinese citizen being a shareholder in a China domestic company and the heirs (often spouse and children) have already…

Case Report: new factual situation for lifting corporate veil under China laws

Limited liability has been recognized as one of the fundamental features of companies and corporations throughout world, which was heralded as great an invention as the steam engine.

Under Chinese laws and in Chinese judicial practice, it has proven that it is difficult to get the court to pierce the corporate veil, a metaphor referring to the limited liability…

China Land VAT: how to avoid or defer payment of land value added tax

Land value added tax is a big cut of profits from property owners in China.

Land VAT is applicable basically in two scenario: (1) corporate property owners that sell properties, including foreign entities that hold China properties,and (2) individual owners of non-residential properties.

If the owner simply sells in the market for cash, then the land VAT …

Inheritance of Corporate Shares in a China Company (III)

This is the third post regarding inheritance of corporate shares in a China company. Again it is about a special situation that may become more and more in reality with more and more Chinese riches migrating to foreign countries.

I. Facts of the Case

In 2002, a Chinese husband set up a trading company with a third party, and business went well. In 2006, the…

Nominee Shareholder Agreement under Current Chinese Laws

 

A nominee shareholder agreement (the “Agreement“) used herein refers to the agreement or contract concluded between two persons (individual or body corporate) whereby A wants to invest in a certain company but for various reason he is hidden from public disclosure and instead, his investment is made and registered in the name of B who …

Overview of China Cyber Security Law and Implications on Foreign Companies

China Cyber Security Law (“CCSL“) has been enacted and took effect (since June 1, 2017) for some time prompting many multinational companies to review and revise their internet policies and take actions to comply with the new law which has profound and far-reaching impact on their business operation in China.

I.   Overview of China Cyber Security

Inheritance of Corporate Shares in a China Company (II)

In the first post regarding inheritance of corporate shares or equity interests in a China company, we have discussed the general procedures of completing such an inheritance.

In this second post, I will specifically address the issue of inheriting the corporate share estate left by a foreign national who is a foreign investor in a foreign invested company…

Inheritance of Corporate Shares in a China company (I)

Readers may notice that most posts I wrote about inheritance of estates in China is related to inheritance of real properties in China. Indeed, there are more inquiries about inheritance of real estate than those about corporate shares or corporate equity interests from visitors.

With more and more people now holding corporate shares, the demand from…

Happy New Year to you all!

Welcome to the new year of 2018. Wish you all have a prosperous and healthy year ahead.

I hope you have been enjoying and you are enjoying the posts on this blog.  I have tried my best to keep this blog informative and helpful to visitors that stumbled hereon.

In the new year of 2018, as always i will try to write about Chinese laws in respect of civil and commercial …