What is the legal framework for setting up a foreign-invested enterprise in China?

The legal framework for setting up a foreign-invested enterprise (FIE) in China is set out in the 2012 China Business Ventures Law. This law is applicable to all foreign entities looking to invest in China, regardless of their home country or area of operation. The China Business Ventures Law allows foreign investors to set up companies in a variety of forms, including a joint venture, a wholly foreign-owned enterprise (WFOE), or a representative office. Investors can also take advantage of the government’s foreign investment preferential policies. Before setting up an FIE, investors must apply for and obtain business licenses from competent authorities in China. This involves submitting an application outlining the company’s nature, business scope, organizational structure, capital, and other relevant information. The China Business Ventures Law also sets out the rules for foreign entities or individuals to invest in the Chinese market through an overseas indirect investment. For foreign entities to set up a holding company in China, they must register with the relevant local administration for industry and commerce through an online application process. They must also provide detailed information regarding any related parties, the capital structure of the holding company, and their management objectives. In addition, investors should also consider the implications of the Corporate Income Tax Law of the People’s Republic of China and other relevant laws and regulations before setting up a company in China. Ultimately, the China Business Ventures Law provides the legal framework for setting up a foreign-invested enterprise in China. Investors should carefully read and understand the law before taking any action.

What is the legal framework for setting up a foreign-invested enterprise in China?

Related FAQs

Related Blog Posts