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Tag Archives: China WFOE

China WFOE Formation. The “New” Rules on Minimum Capital.

Posted in Basics of China Business Law, Legal News

In the bad old days (last year), every company in China was required to have a stated registered capital. This amount is provided in the Articles of Association of the company and is also noted on the company register. The registered capital includes all of the components of the initial investment in the company, including… Continue Reading

Hiring A China Employee Through A Dispatch Company. Don’t Forget About Your IP.

Posted in Legal News

Despite the increasing restrictions on using employee dispatch companies for hiring of “your” China employees, our China lawyers have seen very little by way of a slowdown in smaller companies choosing to go that route, especially if doing so will allow them to delay having to form a China WFOE that much longer. The legal… Continue Reading

Paying Your Non-Chinese Employees In Your China WFOE: Splitting The Salary, Part 1

Posted in Legal News

This post is by Grace Yang, one of our China lawyers resident in Beijing. Grace has her B.A. from Beijing University and her J.D. (law degree) from the University of Washington. Grace is licensed to practice law in Washington and New York States and she will be sitting for the China bar exam this fall…. Continue Reading

Buying A China WFOE. Difficult But Not Impossible.

Posted in China Business, Legal News

The other day we did a post on how to shut down a China WFOE, entitled, How To Shut Down Your China Operations. In that post, we mentioned the possibility of selling your China WFOE to an employee or employees or selling it to another foreign company looking to go into China. We got the following… Continue Reading

How To Shut Down Your China Operations

Posted in China Business, Legal News

Our China lawyers have been seeing a massive increase in inquiries from American companies looking to close down their operations in China. On top of that, I shared an early morning taxi today from my airport hotel to O’Hare with a guy who was heading to China to aid in shutting down his company’s China… Continue Reading

Doing Business In China. Get Your Legal Act Together Or Get Out.

Posted in China Business, Legal News

Just sent an email to an American company setting out the basics of what it should be looking for in the initial stages of determining whether it wants to invest in another American company that has a WFOE in China. The list included that the American company make sure that the China WFOE is properly… Continue Reading

Forming A China WFOE: Watching The Sausage Get Made.

Posted in Legal News

One of the most frustrating things about doing business in China is the paper work. The seemingly endless paper work…. I was cc’ed on an email the other day from one of our China lawyers to one of our clients.  The client had signed the documents required for a WFOE using the wrong ink.  The… Continue Reading

Where To Form Your China WFOE? What’s Law Got To Do With It?

Posted in Legal News

Twice in the last couple of months while working on registering WFOEs for clients, clients have come to us and asked our thoughts about switching their WFOE formation cities.  In both cases, their basis for questioning came from having heard that some nearby city was easier for a China WFOE formation and had better labor… Continue Reading

How To Start A Business In China. The Minimum Capital Requirements For A WFOE, Part II — The Goldilocks Rule

Posted in Basics of China Business Law, Legal News

Companies seeking to form a WFOE in China are often confused about Chinese law regarding the minimum registered capital requirements for forming a WFOE.  Part of the confusion stems from disreputable entity formation companies that encourage their hiring by claiming they know exactly how much will be required and that they have the ability to… Continue Reading

FICE — A China WFOE Or Joint Venture By Any Other Name.

Posted in Legal News

A couple of years ago, we did a post on FICEs, entitled, The China FICE — Foreign Invested Commercial Enterprise.  The reason we did that post then (and the reason we are doing this post now) was to clear up common confusions regarding FICEs, which really are nothing more than a subset of Wholly Foreign Owned… Continue Reading

Buying And Selling China WFOE Shell Companies. Not In My Lifetime?

Posted in Legal News

Every few months or so (including this morning) I get an email or a call from someone who wants to know if my law firm has any clients that might be interested in buying a shell China WFOE.  And every few months or so (including this morning), I say “no.” Let me explain. The people… Continue Reading

How To Form A China Company (WFOE or JV). Hong Kong Entities. They’re Baaaaack. Part II.

Posted in Uncategorized

Less than a month ago, we wrote a post, entitled, How To Form A China Company (WFOE or JV). Hong Kong Entities. They’re Baaaaack. The gist of that post was that my law firm was now favoring the forming of Special Purpose Entities in Hong Kong to hold the soon to be formed Mainland China Wholly Foreign… Continue Reading

Suing A China WFOE’s Parent In A U.S. Court, Part II.

Posted in Legal News

I Suing A China WFOE’s Parent In A U.S. Court. That’s A Tough One, we recently wrote on the ConocoPhillips case, in which a group of Shandong fisherman are suing ConocoPhillips in the Southern District Court of Texas for compensation arising from a couple of oil spills in Bohai Bay.  We wrote of how we… Continue Reading

Suing A China WFOE’s Parent In A U.S. Court. That’s A Tough One.

Posted in Legal News

Just read a China Daily article on how a group of Shandong fisherman are suing ConocoPhillips in the Southern District Court of Texas for compensation arising from a couple of oil spills in Bohai Bay. Three U.S. law firms are handling the case: Bilek Law Firm LLP in Houston, Smith Stag LLC in New Orleans,… Continue Reading

China Employee Contracts And Employee Manuals. Not Optional.

Posted in Legal News

Co-blogger Steve Dickinson wrote an email to a client the other day that nicely sets forth much of what is involved with China employment agreements and with China employee manuals.  Steve sent this email after having completed the first draft of the client’s employment contracts and its employee manual, both of which documents are absolutely… Continue Reading

It’s Your Business. Not Your Chinese Partner’s.

Posted in China Business, Legal News

If you are a foreign business, it will not be easy or cheap for you to set up a business to operate legally in China. The following is just the most basic of lists of what you need to do to set up and operate legally in China: Register your legal entity in China. This… Continue Reading

How To Form a China WFOE. Scope Really Really Matters.

Posted in China Business, Legal News

Pretty much every week my law firm gets contacted by an American or European company with big plans for China. Almost invariably (and this is a good thing), this company has spent tens of thousands of dollars in researching China for their business and in travelling back and forth to China to scope things out…. Continue Reading

Doing Business In Or With China. Ask Yourself These Questions.

Posted in Basics of China Business Law, Legal News

A consultant friend of mine is leading a very large group of American businesses to China for a big exhibition. He is putting together a short manual for these businesses and he asked me to help put the bug into the ear of these businesses that they should not be ignoring China legal issues.  … Continue Reading

China Law. Do Not Try This At Home. Please.

Posted in Basics of China Business Law, Legal News

A reader sent me an email today with a link to a discussion on a LinkedIn group regarding the cost of setting up and doing business in China. The discussion began with someone seeking information regarding the best way to set up a business in China and information about what that will cost. I am… Continue Reading

Minimum Capital Requirements. Good News For Small Companies Looking At Shanghai.

Posted in Legal News

By: Steve Dickinson Shanghai has recently loosened its minimum capital requirements for WFOEs (Wholly Foreign Owned Enterprises), making location of service businesses in Shanghai far more attractive. Chinese company law mandates all one shareholder corporations have a minimum registered capital of at least RMB100,000. The WFOE formation regulations provide for no specific amount for registered… Continue Reading

China Business. China Jails. China Hostages.

Posted in Legal News

Nearly every time I write on this topic, I get at least one email from someone accusing me of fear mongering. I used to dispute that accusation, now I heartily embrace it. I embrace it because the overwhelming majority of foreign companies doing business in China make no allowance even for the possibility of one… Continue Reading

Forming A Chinese Company. Do It Right Or Do It ALL Wrong, But Don’t Do A Rep Office.

Posted in Basics of China Business Law

Every couple of weeks my firm gets an email or a phone call from a small business that is seeking to justify forming a Rep Office in China instead of a Wholly Foreign Owned Enterprise (WFOE). These small businesses typically go into advocacy mode explaining why their business can and should be a Rep Office… Continue Reading