Wednesday, 10 June 2015

Major Issues in Doing Business in China

Primasia Corporate Services Limited and its WFOE (joint venture with CBC, a Swiss-listed group) will be pleased to advise on specific aspects of doing business in China.

Foreign companies should consider the following factors when determining their method and place of incorporation:
  • Their business needs, whether for trading, manufacturing, export or plain networking. It may not be    necessary to establish a legal presence in China, with all that entails;
  • The regional differences in incorporation requirements and tax systems;
  • Incentives from local governments;
  • Supply chains for specific industries in different regions.
Following a decision on the approach and location of set-up, foreign companies should apply due diligence and prepare for:
  • Adapting the procedures and requirements for company incorporation and licence applications applicable to their own business type and selected regions;
  • Complying with foreign currency controls on fund transfers in and out of China;
  • Meeting the requirements of various layers of tax systems and types;
  • Coping with cultural differences at the country and district levels in terms of commercial concepts as well as employer–employee and social relationships.

Foreign Investment Guidance
This is a PRC government publication which covers eligible and forbidden business natures and industries, as well as the respective capital and incorporation requirements for eligible businesses. It is subject to review from time to time.

The current version covers four categories, namely the “encouraged”, “permitted”, “restricted” and “prohibited” categories. Industries relating to environmental protection, improved extraction of natural resources, waste management, recycling energy efficiency, venture capital and IP are among the “encouraged” industries.

Anything not “encouraged”. “restricted” or “prohibited” is “permitted”.

We will introduce the main types of foreign investment set-up in our next post. Stay tuned!


Need more information?
Please contact:
John Barclay -Email
Teresa Tam - Email 
Follow us on:
LinkedIn: Primasia
Primasia Corporate Services Limited
Tel: +852 2882 2088
Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

No comments:

Post a Comment