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

The legal framework for setting up a foreign invested enterprise in China is governed by the China Business Ventures Law (CBVL). This law is in place to regulate economic activities between China and foreign entities, including foreign invested enterprises (FIEs). Under this law, foreign investors are allowed to create FIEs in China in seven different types of legal framework; foreign-invested partnership enterprise, foreign-invested holding enterprise, foreign-invested joint-stock enterprise, foreign-invested enterprises limited by shares, foreign-invested enterprise, foreign-invested cooperative enterprise, and foreign-invested production-operation enterprise. The registration process for setting up a FIE varies depending on each type, but generally requires approval from China’s State Administration of Industry and Commerce (SAIC). After the FIE is registered, it must follow certain criteria and pay particular taxes and fees in order to operate legally in China. In addition to the legal framework of CBVL, FIEs must also abide by other laws and regulations specified by China’s Legal System, which includes the Constitution, Civil Code, Contract Law, Foreign Investment Law, and the Labor Law, among others. In North Dakota, potential foreign investors can find resources on the legal setup for FIEs in China at the China-United States Exchange Foundation’s website. This website provides comprehensive information on China’s legal framework, procedures, investment incentives, and other necessary documents for setting up a FIE in China.

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

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