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
Tag Archives: representative office
Doing Business In China By Starting A Business In China. The Legal Basics.
Posted in Basics of China Business Law, Legal NewsOne 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 NewsI 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 NewsI 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 NewsThis 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 NewsPretty 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 LawI 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 NewsSpoke 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 NewsJust 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
Chinese Company Formation — Forming A Wholly Foreign Owned Entity (WFOE) In China
Posted in Basics of China Business Law, Legal NewsBy: Steve Dickinson 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… Continue Reading
The Motley Fool Is Foolish On China
Posted in Legal NewsThe 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
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