Holding Company in China
Holding Company in ChinaUpdated on Sunday 02nd February 2020
Rate this article
based on 2 reviews
based on 2 reviews
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. They can also help you obtain the EORI number.
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.
Businessmen interested in finding out more details referring to a holding company are invited to contact our law firm in China.