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

Setting up a foreign-invested enterprise (FIE) in China is a complex process with a number of legal requirements that must be fulfilled. The exact legal framework for setting up an FIE in China depends on the type of investment and the region in which the investment will take place, but some general steps must be taken. Firstly, the investor must obtain approval from the Chinese government in the form of a Foreign Investment Permit or a Foreign Investment License. This involves submitting detailed documentation regarding the investment to the relevant Department of Commerce. Once this documentation has been received and approved, the FIE must be registered with the local Administration for Industry and Commerce (AIC). This registration allows the FIE to be legally established and officially registered with the Chinese government. The FIE must then be registered as a company with the State Administration of Industry and Commerce. This includes registering the FIE’s name, legal address, and board of directors. This process must be completed before any business activities can commence. Finally, the FIE must obtain the necessary business licenses in order to operate legally in China. Depending on the type of business, this could include a business license, a China value-added tax (VAT) registration, and any other permits required by local or central government. In South Dakota, businesses must also adhere to applicable state and local business laws. The South Dakota Department of Revenue provides information and guidance regarding these laws, as well as other relevant regulations.

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

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