Many believe that forming a China WFOE consists mostly of filling in lines on an application and submitting it to a China government office and then sitting back and waiting. If you share this belief, you are, among other things, ignoring all that goes into deciding how to manage the WFOE once formed. I was
For the last few months, I alone have been averaging a call or email a day from someone inquiring about getting money out of China. Yesterday's calls were typical. One was from a realtor wanting to know how the Chinese buyer of a two-million-dollar house could get her money out of China to pay for it.
The PRC Ministry of Human Resources and Social Security recently released a set of rules regarding providing public notice of China employer labor violations (《重大劳动保障违法行为社会公布办法》). The goal of these new rules is to deter employers from violating China's labor and employment laws and regulations. These rules will take effect on January 1, 2017, and they
It is far cheaper to avoid China employment law problems than to deal with one that has arisen. If you follow the following eight rules, your chances of having a China employment problem will markedly decrease. 1. Use written employment contracts. China employers without a written employment contract are exposing themselves to penalties, administrative fines and the risk of
With the last quarter of the year approaching and with China increasing its scrutiny of foreign businesses operating in China, now seems like the right time to talk about what foreign businesses (WFOEs, joint ventures, representative offices) should be doing to protect themselves on the China compliance front. If you have familiarized yourself with applicable
Generally speaking, China employees must be employed under a written employment contract. Such a contract may be for a fixed or an indefinite term. When it comes to unilaterally terminating an employment contract, China employment law does not treat the employee and the employer as equal parties; the employee has much more power than the
It goes without saying you should choose good business partners abroad. The kind of partner that doesn't like getting sued ... and hence doesn't give you reason to sue them. Partners that won't steal your IP. But just how can you know a partner is reliable before you do business with them and put them to the acid test?
China permits only the following three categories of “dispatched” employees to be hired by a labor dispatch agency: Temporary employees with a term of no longer than 6 months. Auxiliary employees who provide supporting services that are not central to the employer’s core business. Substitute employees who perform tasks in replacement of permanent employees during
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
