On December 29, 2007, the China’s parliament, the standing committee of the National People’s Congress, has just enacted an amendment to the Individual Income Tax Law, raising the threshold of the amount of taxable income from RMB 1,600 to RMB 2,000, a move aimed to alleviate the embarrassment of the pockets of the low income earners against the backdrop…
Very often in a contract or a legal opinion, it is critical to distinguish what kind of laws and regulations are applicable or concerned. Most countries have more than one legislature bodies and legislation at different levels is given different legal force. China has enacted its legislation law in the year of 2000, namely, the Law of Legislation of China (“Legislation…
News in the media has been divided in guesstimating where the house prices are going. Very often, good news and bad news appear on the same webpage, leaving readers in sway.
Confusion is thick especially in the residential property markets with transaction volume being reported to go down sharply in May which used to be a “red month†meaning golden time for…
Though in a foreign investment context, we often use the foreign invested enterprise to refer to the entities foreign investors may set up in China, nowadays most entities established by foreign investors are companies under the company law of China rather than an enterprise. In the Chinese legal jargon, a company is for sure regarded as an enterprise but an…
Enterprise Bankruptcy Law of the People’s Republic of China
　　（Adopted at the 23rd Meeting of the Standing Committee of the Tenth National People’s Congress on August 27, 2006）
　　
Chapter I　　General Provisions
　　Article 1 This Law is enacted with a view to regulating the procedure for enterprise bankruptcy, fairly settling…
The China State Administration of Taxation issued on May 26, 2008 the Circular on Deed Policy relating to Assignment of Assets to Wholly Owned Subsidiary from Parent Company, clarifying a situation where deed tax is exempted.
The circular is to the effect that, where a company increases the registered capital of its wholly owned subsidiary through contributing…
Chinese foreign investment regulation originated earlier than the enactment of the first Company Law of China (1994) and this together with other reasons gave rise to the irregular corporate governance structure of foreign invested enterprises (which term generally excludes foreign invested companies limited by shares) where there was generally no …
On June 16, 2008, the People’s Supreme Court of China published the Interpretation on Several Issues regarding Application of Law in Trial of Cases Involving Condominium Ownership (the “Condo Interpretationâ€) and asked for public comments thereof. The original Chinese text of the draft Condo Interpretation is on the following website:
http://www.chinacourt.org/html/article/200806/16/307335.shtml…
Laws and Regulations
At present, the major regulations governing Chinese practicing lawyers’ practice in Foreign Law Firm Representative Office (“R.O.â€). are as follows:
• Regulations on the Administration of Foreign Law Firms’ Representative Offices in China (“Regulationsâ€)
• Provisions of the Ministry of Justice on the Execution…
Since many documents especially the articles of association involved in setting up a foreign invested company have to be approved by foreign investment department (“Approving Authorityâ€) beforehand prior to registering the company with the company registration agent, the State Administration of Industry and Commerce and its local counterparts…
A court in Minhang District in Shanghai delivered a judgment that aroused interests among the public, in which the court held the two babies, one of 5 years old and the other of 6 years old, were entitled to be registered as shareholders of a company. While the copy of the judgment is not available, the information from the Internet suggested that the company is …
Yesterday, China state cabinet issued the Several Opinions on Boosting Healthy Development of the Property Market (the “Opinionsâ€), in a bid to boost the bearish property market which had been the engine industry for the Chinese economy.
The key point in the Opinions that grabs common homeowners’ attention is the change in policy regarding the time…
On November 19, 2008, four Chinese ministries, namely, Ministry of Commerce, Ministry of Foreign Affairs and Ministry of Justice jointly issued a circular, Guidelines for Cross-border Pursuit and Litigation by Chinese Parties in respect of Abnormal Capital Withdrawal by Foreign Investors (“Guidelinesâ€), an attempt to curb deviant withdrawal of…
State Council has published the newly revised Regulations of the People’s Republic of China on Foreign Exchange (the “Regulations”) on August 5, 2008, which immediately attracted attentions from around the world and on August 8, 2008, Financial Times ran two commentaries relating to the revision on its Chinese version website.
It is…
On July 8, 2008 the State Development and Reform Commission issued a circular, namely, Circular on Further Strengthening and Regulating Foreign Invested Project Management (“Circularâ€), in a bid to rein in the flood of speculative hot money into China by means of fake joint venture, submission of false total investment amount or setting up shell companies…
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…