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.
Introduction
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!
We will introduce the main types of foreign investment set-up in our next post. Stay tuned!
===================================================================
No comments:
Post a Comment