By popular demand we are reprising our “Ten Things To Consider” series, starting anew with forming a China WFOE. Here goes. Make Sure Your Business Scope is Legal. Too many WFOEs never get past the starting line. A number of industries are restricted to foreign-invested companies, so before you sign a lease in Shanghai or
China has become adept at spotting and hunting down foreign companies doing business in China without a required Chinese entity. What exactly constitutes doing business in China at a level requiring a Chinese corporate entity ? That is far too complicated to answer in a blog post, but suffice it to say that the Chinese
On March 10, 2016, the PRC government will impose new rules to govern online publishing in China. Under these new rules, all entities that intend to publish online in China must first obtain an Online Publishing Service Permit from SAPPRFT. The OPS Rules set out the conditions for obtaining the required permit. The Chinese government strictly
A China-centric written contract is an effective tool for doing business in or with China. A first step in creating this effective tool is to carefully follow the rules for execution. Chinese courts are bureaucratic and formalistic. Make use of that tendency so you can prevail. Don’t blunt the edge of your instrument with sloppy
Our China employment lawyers constantly hear misinformation about China employment contracts and double wage claims. In this post, I will try to set the record straight. China’s employment laws require full-time employees be employed pursuant to a written employment contract. But what happens with employees without a written employment contract? As with pretty much everything
Contracting in China: The Old and the New It used to be common for OEM manufacturing in China to be done on a purchase order basis, with no underlying contract. Much service work done by foreigners for Chinese clients was based on an exchange of emails. Today, however, to be able to bring a plausible
China Contract Formalities Contracts with Chinese companies often generate a unique set of legal and procedural intricacies. China’s legal landscape differs significantly from that of American, European, or Australian jurisdictions, primarily due to its distinct regulatory frameworks and business culture. These differences require a China-centric approach to both the drafting of China contracts and to
Most of our clients know little about China employment law, but most know well that China has high expectations on how China employers must treat pregnant and nursing employees. Our clients know this because they all seem to know of a foreign company that had to pay a lot of money for not knowing this.
China has liberalized its minimum capital requirements for WFOEa and the amounts required have been reduced in many Chinese cities. But even if the Chinese government is going to let you get away with very little registered capital, you may want to pay more. You should think about the registered capital you should be paying
China’s labor law provides for a 44-hour work week, but its regulations provide for a 40 hour work week and most municipalities enforce the 40-hour work week, but recognize that this workweek may not be practical for certain employees. A “flexible” working hours system is thus permitted for “senior management” as an exception to this
