What is required to open a foreign invested enterprise in China?

Opening a foreign invested enterprise in China requires a few steps. First, potential investors must evaluate the investment environment in China, assess the potential risks and develop their own strategies. Then, they must consider the type of business they would like to establish, as foreign investment laws differ depending on the industry. After ascertaining the type of business, investors must consider the type of legal entity they want to set up. Options include a Wholly Foreign-Owned Enterprise (WFOE), Joint Venture, or a Representative Office. Investors will then need to register with the appropriate authorities in China, and the process will vary according to the type of legal entity chosen. This includes submitting an application with relevant documents such as articles of association, a business plan and proof of capital (if investing more than 500,000 USD). Investors should also seek out the services of a tax professional who can oversee the registration process. Finally, investors will need to obtain appropriate business licenses from the relevant governing bodies in China. These licenses must be specific to the type of business, and investors will also need to comply with China’s labor law, as well as environmental and safety regulations. Once all these steps have been completed, the foreign invested enterprise can begin business operations in China.

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What is required to open a foreign invested enterprise in China?

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