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Tag Archives: representative office

China Rep Office Hiring Rules

Posted in Legal News

Just updated our research regarding China Representative Office rules relating to employees and note the following. Q.  How many foreigners can work for the Rep Office? What is the proper term for referring to these employees? A.  A Rep Office may hire no more than four foreign persons, each of whom is called a representative…. Continue Reading

Hiring A Chinese Employee Without A China Company. Good Luck With That. Part II.

Posted in Legal News

A couple of years ago, we did a post on the difficulties in using “independent contractors” in China, entitled, Hiring A Chinese Employee Without A Chinese Entity. Good Luck With That. We wrote that post (and this post too) because forming a WFOE in China can be so difficult, expensive, and time-consuming, and because so many companies are… Continue Reading

Doing Business In China By Starting A Business In China. The Legal Basics.

Posted in Basics of China Business Law, Internet, Legal News

One of the most common calls my law firm receives is the one from someone saying that they want to “start a business in China.” The first thing we do with that sort of caller is to seek to ascertain whether a China business is actually necessary.  Forming and then operating a business entity in… Continue Reading

China Rep Offices, Bankruptcies And The Perils Of Being Chief Representative

Posted in Legal News

I know I keep reading how China’s economy is just fine, but my firm just keeps getting more inquiries and more work relating to shutting down offices and companies in China.  Of those, the most heartbreaking are coming from Chief Representatives of China Representative Offices who are concerned about their own liabilities when their China… Continue Reading

Forming A Chinese Entity. What About The Fourth Way?

Posted in China Business, Legal News

I received the following email today (modified slightly to take out any possible identifiers): My name’s William and I am a Chinese. I am also an avid reader of China Law Blog. So when Frank, my American friend who owns a translation services company in America, asked me about how to set up a limited… Continue Reading

Quasi-Legal In China. Not The Place You Want To Be.

Posted in China Business, Legal News

This post is essentially a re-running of a post we did at the end of last year. We are re-running it because as China’s economy starts to waver, the Chinese government seems to have stepped up both its tax collection and its closing of illegal foreign businesses another notch. I received two calls just last… 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

How To Start A China Business — Representative Office

Posted in Basics of China Business Law

I am always saying that for every 100 China WFOEs and Joint Ventures my law firm helps set up in China, it does one representative office. Why so few, when it is generally agreed that representative offices are the easiest type of offices for foreign firms to set up in China? Because the inherent limitations… Continue Reading

The China Representative Office (RO). Got WFOE?

Posted in Legal News

Spoke with a China lawyer friend of mine today who told me his firm had not “done” a single China Rep Office for the last six months. Every time someone had contacted them with plans for a China Rep Office, it ended up as a WFOE. I told him the same thing had been happening… Continue Reading

China WFOE vs. JV. Make Mine A WFOE. I Just Call It Like I See It.

Posted in Legal News

Just got this comment (comment # 63 on our post, “China: First Let’s Clear Out The Long Time Foreigners,” posing some pretty important questions and also leaving hanging some very common misconceptions about doing business in China: So here’s my question albeit already bounced around but no solid answer given…. JV or WFOE for a… Continue Reading

A Legal Checklist For China Business

Posted in Legal News

Lawyers love checklist and China lawyers are, of course, no exception. Me, I love clients, not only because they are the lifeblood of my law firm and thus my livelihood, but also because they so often are the ones who stimulate the ideas for this blog. I just spoke with a client who asked me… Continue Reading

The Basics Of Getting Your Business Into China By WFOE/WOFE

Posted in Legal News

Great post over at DiligenceChina, entitled, “China Business Entry: Business Registration is a Group Project,” [link no longer exists]on how to get your business into China. I love the post because it is written from the perspective of a highly educated and knowledgeable businessperson (NYU MBA with substantial China business experience), rather than by a… Continue Reading

Foreign Ownership Of Real Estate In China/China’s New Forex Rules

Posted in Legal News

In July 2006, the Chinese government issued rules prohibiting foreign individuals and companies from directly owning commercial real estate in China. Just this month, China’s State Administration of Foreign Exchange (“SAFE”) issued new foreign exchange rules. In my experience dealing with real estate investors here in Shanghai and elsewhere in China, both of these rules… Continue Reading

China Procurement Centers Going WOFE Because It Makes Sense

Posted in Legal News

Because Chinese manufactured goods are so cheap, a huge number of foreign businesses have set up procurement centers in China to oversee their China purchasing. For many years, these China procurement centers were formed as Representative Offices because Chinese law did not allow such businesses to be Wholly Foreign Owned Entities (WFOE). That law recently… Continue Reading

Chinese Company Formation — Forming A Wholly Foreign Owned Entity (WFOE) In China

Posted in Basics of China Business Law, Legal News

This post focuses on how to form a Wholly Foreign Owned Entity (WFOE) in China. I am starting with this type of entity because it is the one we do most often. Subsequent posts will detail the steps required to register other forms of entities in China, such as a representative office (RO) or a… Continue Reading

The Motley Fool Is Foolish On China

Posted in Internet, Legal News

The Motley Fool, a hugely popular investment advice site, recently did an article on Home Depot’s planned expansion into China, entitled, “Home Depot Sells Fine China.”  The article talks about how Home Depot is looking to buy a 49% stake in Orient Home, a leading do-it-yourself China retailer. The article correctly notes that for big… Continue Reading