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Tag Archives: WFOE formation

China WFOE Formation And Minimum Capital Requirements

Posted in Basics of China Business Law

China has liberalized its minimum capital requirements for a WFOE and the amounts required have been reduced in many Chinese cities/districts. But even if the Chinese government is going to let you get away with a very small amount of registered capital, you may want to pay more. You should think about the registered capital… Continue Reading

China’s New WFOE Minimum Capital Requirements. Waiting For The Dust To Settle.

Posted in Legal News

China (nationally) recently changed its minimum capital requirements to zero. Many commentators have written on this change but none as far as I can tell have written on what it really means in concrete terms for foreign companies seeking to form a WFOE in China. We have received a number of reader emails asking us… Continue Reading

How To Shut Down Or Sell Your China WFOE

Posted in China Business, Legal News

As China’s economy continues to contract, our China lawyers are getting an increasing number of inquiries from companies seeking to sell their China WFOEs. In fact, we are aware of the following currently on the market: A Shanghai consulting WFOE A Beijing consulting WFOE A Dalian manufacturing WFOE Back in May, in Buying And Selling China… Continue Reading

Hiring “Independent Contractors” In China. Don’t Do It.

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

We spoke with a software company the other day that has nearly fifteen “independent contractors” in China, who it views as “part of the corporate family.”  This company was contacting us to see about forming a WFOE in China.  They told me that they were not in any rush. The first thing I did was… Continue Reading

China WFOE Formation. The Minimum Capital Requirements.

Posted in Legal News

A quasi-fascinating email just crossed my desk regarding the minimum capital requirements required for WFOE formation in China. I was cc’ed on this email from one of my firm’s lawyers to another, musing about the minimum capital required for a company that would be profitable from day one, based on payments from its parent company:… Continue Reading

Forming A China WFOE. How Long Will That Be Going On?

Posted in China Business, Legal News

More from the Doing Business in China Seminar I co-moderated last week. My law firm does a considerable business in forming China WFOEs.  Unlike forming a company in the United States, which costs very little in out of pocket costs (always less than USD$1000) and takes almost no time at all (a few days at… Continue Reading

China Movie Co-Productions. They’re Tightening In A Sign Of Things That Have Come

Posted in China Film Industry

One of the things we are always writing about and always trying to get a handle on is what the attitude is in China towards foreign investment.  That attitude is never static for long, always shifting with the economy and sometimes shifting due to other factors such as politics. We are in the midst of… Continue Reading

How To Hire A China Employee Before Your WFOE Is Registered. It’s Difficult.

Posted in Legal News

Many a time a company has come to us wanting a Wholly Foreign Owned Entity (WFOE) formed “right away” so that they can “immediately” bring on a China-based employee or employees. It’s not that easy.  Not at all. First off, no matter what anyone may tell you, it is the very rare WFOE that can… Continue Reading

China WFOE Formation And China’s Minimum Registered Capital. How Low Can You Go?

Posted in Legal News

Forming a company in China. It makes my blood boil because, quite frankly, there are a number of consultants out there who are essentially lying to their clients about what it takes to form a company in China. They make it sound easy and cheap and so when one of my law firm’s China lawyers… Continue Reading

Foreign Investors In China Need To Go Slow

Posted in Legal News

When setting up a business in China, speed kills. Things take longer to accomplish in China than in the West, particularly during the start up phase. U.S. companies are notoriously impatient and will often attempt to speed up the process, which generally leads to disaster. To succeed in China, you need to expect everything will… Continue Reading