Chinese Commercial Code
Chinese Commercial CodeUpdated on Sunday 02nd February 2020
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The Chinese Commercial Law includes many national laws, administrative regulations and local rules. As a part of the Civil Law, it contains both private laws and public laws related to business entities, commercial contracts, merchants, trade and economic activities in China.
Our law firm in China can guide local and foreign investors through the provisions of the Commercial Code, available for doing business in China. Our lawyers can provide the necessary legal information regarding commercial activities in China.
Legislative requirements for doing business in China
The Commercial Code defines the types of companies that can be incorporated in China and the general provisions applicable to corporations. A limited liability company can be fully owned by a foreign investor in China and, in this case, it is called a wholly foreign owned enterprise (WFOE). Other business types include the representative office, the foreign invested partnership enterprise, the joint venture or the Hong Kong company.
The liquidation of a company is also defined by the Code, as well as the legal procedures which have to be enforced in this case. At the same time, the ways in which mergers and acquisitions are carried out in China are prescribed by the Commercial Code. A major part of any business is represented by the contracts signed by companies with third parties, providing a legal instrument through which businesses can quantify and protect their activities. The main rules related to a commercial contract are also prescribed by the Code.
Doing business in China
The Commercial Code lays out the most important ways of doing business in China, but it also refers to resolving disputes with Chinese companies. Our Chinese lawyers can provide detailed information about specific articles included in the Chinese Commercial Law. With the assistance of our representatives, investors will able to avoid criminal liabilities while performing their business activities in China.
Our Chinese law firm can offer legal counseling and advice, regardless of the business activity carried out in China. China’s commercial laws have been adapted to attract more foreign investments and the country modernized its legal practices to align with the international standards. Lawyers play an important role in the business environment and in assisting individuals and businesses in China. They can also help you obtain the EORI number.
Commercial contract in China
Businesses in China are regulated by a set or rules that prescribes the way in which companies have to comply with the various aspects of the corporate domain. All businesses are carried out through commercial contracts, which stipulate specific provisions, stating the rights and obligations of both parties who have signed the document. In order for a contract to be fully complete, the parties should mention how various situations can be resolved. As such, a contract should stipulate the following:
• in specific situations in which the company will have to address to the litigation procedure, the parties involved will have to resolve the case through the Chinese court system;
• the governing rule of a Chinese contract is the Chinese legislation;
• a Chinese contract will be drafted in the local language.
Businessmen who want to open a company in China can contact our Chinese law firm for various legal services.