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Tag Archives: Wholly Foreign Owned Entity

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

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

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

How To Form A Company In China. The Basics.

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

Though we often talk generally about what it takes to form a company in China, a reader recently pointed out to me that we have never set out the basic steps one must take to do so. The following sets out the basic steps a foreigner usually must take to form a Wholly Foreign Owned… Continue Reading

Moving On Out To China’s Interior. Why Things Go Slowly.

Posted in China Business, Legal News

A few months ago I was talking with a Korean lawyer friend of mine about where Korean companies are locating in China. He talked of how Qingdao and Dalian were still really popular with his Korean clients, but that some of them were looking at Chengdu and a few other places “more inland.” They were… Continue Reading

The China FICE — Foreign Invested Commercial Enterprise

Posted in Basics of China Business Law, Legal News

Got the following question regarding FICE (Foreign Invested Commercial Enterprise) today that I thought worth answering via a post: As a company we have been planning how we step things up in China for several years and your comments have had a major influence on our thinking. I do have a question. I have heard… 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

The Tangled China Immigration Web Some Weave

Posted in Legal News

A reader sent me a link to a post from the very controversial blog, Atlas Shrugged. The post is entitled, “A Case of Perjury: Mohamed Bary’s Vast Web of Lies.” The gist of the story is that the Sri Lankan parents of a 17 year old Rifqa Bary are being denied the return of their… Continue Reading

China — Damn The Joint Venture

Posted in Legal News

China Business Services Blog just did a short post on joint ventures (JV), entitled, “Don’t Quote Me (on Joint Ventures).”  Regular readers know we are generally not fans of joint ventures.  Yes, they are sometimes necessary for doing business in China, but when they are not, they are usually to be avoided.  What you can… Continue Reading

The Motley Fool Is Foolish On China

Posted in 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

When in China, Don’t Get Screwed — The Movie

Posted in China Business

The Sydney Morning Herald ran a story today called, “Like a Bull in a China Shop,” discussing an award winning Australian documentary on China Business, called “The Men Who Would Conquer China.” This article sums up the movie as follows:  “Rule No. 1: you need a Chinese partner with connections. Rule No. 2: don’t get… Continue Reading

China WFOE v. JV

Posted in Legal News

One of my best friends from childhood, who is now a senior executive at Miniature Precision Components, Inc (an auto parts supplier) sent me an Automotive News article today, entitled China’s Easy-Money Era is Over.  This article details the advice given by the Executive Director of Magna International’s China operations, Keith Lomason, during his speech… Continue Reading