A
holding company is incorporated with the main purpose of
controlling the assets of another/other one/s. It is set up as a
parent company which owns sufficient
voting rights in another business to such an extent that it can have a
direct effect on the company’s policies and management. The
Chinese legislation allows the
incorporation of a holding company, which can provide many advantages for its investors. One of the main aspects relate to the
ease of registering a holding company and
our team of lawyers in China can assist investors with more details on the procedure.
Chinese holding companies
Foreign investors can become partners in a
Chinese holding company, which can be incorporated under one of the
legal entities available here.
Holding companies in China are also referred to as
investment-type companies, due to their sole purpose of
creating investment strategies for other
smaller companies.
A
Chinese holding company is registered following the approval of the
State Administration for Industry and Commerce (SAIC). The procedure will also include an explanation on the
business scope for which the company is set up. Under the
circular Shangzihan, issued in 2011 by the
Ministry of Commerce and
State Administration of Foreign Exchange,
holding companies in China which have at least one
Chinese subsidiary are allowed to share the services and products amongst the companies, without the need of further
establishing new legal entities for each business scope of the company. Investors can find out more details on the regulations from
our team of attorneys in China.
Regional headquarters in China
Businessmen involved in a multinational company that will set up a holding company in China are allowed to register a regional headquarters in this country, under the Holding Company Regulations.
The Supplementary Regulations stipulates the rights given to a regional headquarters, which are mentioned below:
• establish operational and financial leasing services;
•
provide the products and services produced by the company to other
companies in China, which can sell them within the local territory or in other jurisdictions.
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