China controls foreign investments
in the country through a series of laws and regulations concerning the types of companies that can be opened by foreigners, the areas in which they can invest and the benefits as a result of the international treaties between China and other countries.
Our Chinese law firm
provides assistance if you want to invest in China and help you throughout the company incorporation process.
Foreign investment laws in China
The legal framework concerning foreign investments in China consists of laws for the types of companies that can be established, such as the Law of the People’s Republic of China on Chinese-Foreign Equity/Contractual Joint Ventures or the Law of the People’s Republic of China on Wholly Foreign Owned Enterprises and Foreign Invested Enterprises.
Other general laws and regulations include provisions from the Company Law, the Contract Law, the Insurance Law or the Arbitration Law. Business owners who want to hire employees in China
must observe the Labor Law of the People’s Republic of China.
The main types of companies that can be opened by foreign entrepreneurs in China are:
- the foreign equity joint-venture,
- the foreign contractual joint-venture,
- the wholly foreign owned enterprise.
Other business options include the share company with foreign investment, the foreign invested holding company or the joint exploitation. Our Chinese lawyers
can help you with information about these types of companies. If you are interested in purchasing an already existing company, we can help you with company due diligence
Expected changes in the Chinese law for foreign investments
China has proposed a series of changes in the new Foreign Investment Law. While the new regulations are designed to reduce barriers in foreign investments, they will also be more drastic in terms of foreign investments in restricted industries. After the new law will be implemented, foreign-invested companies in China will receive the same legal treatment as domestic companies. Also, most foreign investments in the country will no longer need to obtain a pre-approval from the State Council.
Our Chinese lawyers
can help you set up a company and understand the latest legislative changes. We can also help you with taxation in China