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Tag Archives: WFOE

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

Getting Your China Employee Into Your WFOE From A Third Party Agency

Posted in China Business, Legal News

As China inexorably continues increasing its restrictions on hiring personnel via third party employment agencies (sometimes referred to as FESCO companies or as staffing agencies), our China lawyers are more and more often being tasked with helping our clients move their personnel from the third party hiring company to a newly formed (0r even existing)… 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

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

Selling Products And Services Into China. The Tension Is Rising.

Posted in China Business, Legal News

Just got back from speaking at a truly excellent doing business in China seminar at the University of Toronto. I was on a panel where the question was asked whether the rising tensions (real or perceived) between foreign companies and China were due in large part to the changing nature of their relationship with China…. Continue Reading

Basic Protections When Using A China Employee Dispatch Company.

Posted in Legal News

Got an email the other day (probably the tenth such email I have received) from someone about to sign a contract with a Chinese employee dispatch company. The email asked that one of our China lawyers review the contract within the next two days to make sure there were no “hidden issues”.  I promptly wrote… Continue Reading

Everything You Always Wanted To Know About China Law. The Bibliography.

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

I am going to be speaking at USC this weekend and in poring over old PowerPoints (to create a new PowerPoint for my talk), I came across one with a fairly extensive China law bibliography of some of our most helpful posts.  This bibliography is definitely slanted towards the legal issues that confront foreign companies… Continue Reading

Doing Business In China Illegally. Calling A Table A Chair Does Not A Chair Make.

Posted in Legal News

The Compliance in China blog has a really interesting and informative post, entitled An Incriminating Board Decision of D&B in Violation of Chinese Privacy Law.  The post is on a recent China criminal case against Dun & Bradstreet China subsidiary (presumably a WFOE) Shanghai Roadway D&B Marketing Services and key personnel with that company.  The post… Continue Reading

Doing Business In China. Not So Bad After All?

Posted in China Business

Those of us who constantly deal with China have a tendency to complain about what it takes to get things done there.  We do that because in our minds, everything should happen pretty much instantaneously.  Certainly my law firm’s clients would prefer that and therefore so would I. But I read a Wall Street Journal… Continue Reading

How To Change Your WFOE Legal Representative. It Ain’t Easy….

Posted in Legal News

Over the years my law firm has been called in a number of times to try to get rid of an out of control Legal Representative of a WOFE.  Typically, the company calling us thinks that it ought to be able to rid itself of its WFOE Legal Representative simply by issuing a resolution making… Continue Reading

China Is Getting Tougher On Foreign Business. Stay Flexible And It Will Be Just Fine…

Posted in China Business

One of the themes of this blog for years has been that China is making things tougher for foreign businesses by increasing the strength of its business laws and by stepping up its enforcement of them against foreign companies.  We hear that the same thing is happening to Chinese domestic companies, but starting from a… Continue Reading

How To Terminate China Employees. Oh, And Be Sure To Pay Them.

Posted in Basics of China Business Law, Legal News

Though Western companies getting tripped up in China due to differences in legal systems makes for common fodder on this blog, in the employment law context the reverse often holds true.  Far too often my law firm gets contacted by companies in trouble for either assuming China’s labor laws are completely different from the West’s… 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

When In China …. China Labor Law Controls

Posted in Legal News

Just received an email from a friend stating/asking the following (note that I have changed some elements of the email to strip it of any even potentially identifying information): I am heading off again to work for a few years at our China Rep Office.  My new employment contract with the head office says that… Continue Reading

Five Things To Consider In Forming Your China Company. Plus The Most Important One Of All.

Posted in China Business

Very helpful post over at the always helpful International Business Law Advisor Blog.  The post is appropriately entitled, The 5 Key Factors You Must Consider When Establishing a Foreign Corporation and it lists out the following: Decide on Corporate Form:  The post talks of determining the right corporate form for the country in which you will be… Continue Reading

On Doing Investment Research In China As A WFOE. Not Legal.

Posted in Legal News

One of the things we are always preaching on this blog is the need to first ask whether what you are proposing to do in China is legal or not. I am always telling of how a company once contacted us, bragging about the huge amount it had spent on market research and proudly proclaiming… Continue Reading

Selling In And Into China. Four Good Tips And Mine.

Posted in China Business

The New York Times has an excellent article on doing business in China. The article is entitled, “New Path for Trade: Selling in China,” and it is replete with good advice.  Except mine. Let me explain. The article is on selling goods in or into China and it talks of the great opportunities there and… Continue Reading

Getting Your WFOE Approved In China. What It Really Takes.

Posted in Recommended Reading

The United States Chamber of Commerce recently came out with a report comprehensively detailing what it takes to get a foreign investment approved in China.  I started skimming it, but stopped becuase it caused a sinking feeling in my stomach as it hit too close to home. But for anyone wondering why it takes so damn much… Continue Reading

Doing Business With The New China Seminar. December 13, 2012. Seattle.

Posted in Events, Good People

On December 13, I will, along with Fraser Mendel, be co-chairing a seminar on “The China Market: Selling Products and Services in the New China.”  I promise you it will be an excellent seminar.  I can make this promise because I have known nearly all of the speakers for many years and I can vouch for… 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

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

Posted in Legal News

By: Steve Dickinson When making a WFOE (Wholly Foreign Owned Enterprise) or JV (Joint Venture) investment in China, the investor must consider: who will be the shareholder in the PRC entity? Will the investor invest directly, or will the investor create a special purpose subsidiary company  (an SPV or Special Purpose Vehicle/a/k/a SPE or Special… Continue Reading

Building And Operating A China Factory. Why Even Bother?

Posted in China Business

Client of mine emailed me a post on starting a factory in China and asked me if it was accurate.  I told him yes and, if anything, it had sugar-coated things.  The post was Creating a factory in China to replace your suppliers, on the Quality Inspection Tips Blog, and it essentially warned of the “huge”… Continue Reading

The Best Way To Do Business With China. Joint Venture, Rep Office, Licensing Agreement, Distributorship, Export Selling?

Posted in China Business

Richard Brubaker over at All Roads Lead to China just did an interesting post on the return of China Joint Ventures. The post is entitled “Who is up for another round of Joint Ventures,” and its thesis is that China is getting tougher on foreigners so foreigners are reconsidering the value of a Joint Venture… Continue Reading