To describe employer and employee taxes in China as complicated is an understatement. My law firm usually advices our clients to secure bookkeeping/accounting assistance for this and we do not get much involved with calculating these figures. However, a client of ours for whom we are handling a number of China employment law matters requested
Our China company formation lawyers spoke with a software company the other day with fifteen “independent contractors” in China they view as “part of the corporate family.” This company was looking to form a WFOE in China, but they said they were in no rush. The first thing we did was tell them that what
English Translations of Chinese Laws Every couple of weeks, someone asks one of our China lawyers for an English translation of a Chinese law or cites one of our blog posts as an explanation for a decision they made or are contemplating making. The Pitfalls of Using Translated Chinese Laws for Decision Making China’s laws
Companies seeking to form a China WFOE are often confused about WFOE minimum registered capital requirements. Part of the confusion stems from disreputable entity formation companies that claim to know exactly how much will be required and boast of their ability to get the Chinese government to agree to a low amount. Under Chinese law,
Silly Rabbit, the Chinese Language Contract is What Matters One of my favorite trix” employed against American companies doing business in China is the dual language contract, where the English language version is silent on which language controls. We often see this from companies that come to us for the first time with a contractual
I was recently emailing with a reporter regarding how Memoranda of Understanding, (MOU) and Letters of Intent (LOIs) are so different in China than in the United States/Britain and how that difference often causes early discord between Chinese and American companies. We started the discussion by talking about the differences in the meaning of Memoranda
Got a call the other day from a Chicago lawyer with a Chinese client who wanted to buy an expensive house in a Chicago suburb. The lawyer’s Chinese client had said Chinese law limited him to taking out only $50,000 from China and this lawyer was calling to see how his client might take out
China Distributor Relationships Make Sense, Especially Now My law firm’s China lawyers have written more product distribution agreements in the last three years than in the ten years prior. This is happening because foreign companies want to profit from China’s consumer and industrial markets, but they are wary of going into the country in a
Virtually every Non Disclosure Agreement (NDA) our China lawyers see is defective. One of the things that most frequently makes them defective is that they call for disputes to be resolved in a U.S. court. The problem is that Chinese courts do not enforce US court judgments and so even if the American company prevails
One of the most common calls our China lawyers get is the one from someone saying they want to “start a business in China.” The first thing we do with that sort of caller is to seek to ascertain whether a China business is actually necessary. Forming and then operating a business entity in China
