Power of Attorney in China

Power of Attorney in China

Updated on Monday 11th December 2017

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Companies with establishments in China, whether created by local investors or foreigners can appoint for representation a third party which can be an individual or another kind of entity. In this matter a power of attorney must be issued, a document through which the appointed person can act on behalf of the company, grantor, or other individuals on the Chinese territory. It is good to know that our lawyers in China can represent any person or company with a power of attorney (in English and Chinese), and can also guide you throughout the main steps of the preparation of the documents. Most often, there are cases related to business disputes where a suitable legal support and advice must be considered. Our advisors can provide such legal services on behalf of the owner or entity with the help of a power of attorney

Using a power of attorney in China

A power of attorney can be issued by a foreign business owner in China to his or her Chinese agent in order for the latter to be able to perform any needed business activities in the absence of the grantor.  A power of attorney can be a simple one, allowing for the performance of only one task or it can grant various duties and responsibilities to the appointed individual.
The document must describe the scope of authorization and it can include authorizations to handle the sale, transfer, gifting, mortgaging, leasing or dividing of the subject lands/buildings, re-issuance of land/building deeds, tax payments and other matters related to the management, proceeds, and disposals of the subject lands/buildings. A power of attorney can be used in any jurisdiction in China if one individual entrusts another to act in his or her name and protect their best interests. When a Chinese or foreign business owner wants to appoint a Chinese lawyer to perform various activities, like litigation or arbitration in his or her name, a power of attorney will be necessary.
Our Chinese lawyers can represent you and for this purpose, you may entrust one of our Chinese lawyers with a power of attorney.

Details about the power of attorney

A power of attorney may be defined according to the purpose it serves or according to its duration. A power of attorney in China can be revocable or irrevocable. As the names suggest, the revocable one can be terminated by the principal at any time, while the irrevocable one cannot be terminated by the principal. However, in this last case, it does not mean that the power of attorney survives all and any terms. Upon certain breaches and the statutory conditions for contract termination, according to the Chinese law, even an irrevocable power of attorney can be terminated.
Our legal advisors can help you draw up any necessary power of attorney. Depending on your specific business or personal purpose, our Chinese lawyers will advise you what rights and limitations are best to be used in a power of attorney.

How a power of attorney is issued in China

The validity of a power of attorney in China depends on an important step, and that is to sign the document at the public notary and then to be sent for authentication to the Department of Foreign Affairs and Trade in China. The next step is to send the document to the Chinese Embassy for validity. Even if it is a three-stage procedure extremely important, the power of attorney is usually issued in little time. Our team of local lawyers in China are able to offer information about how a power of attorney can be granted and used.

The need of power of attorney in cases of litigation in China

For varied reasons, companies or business owners, locals or from abroad, might deal with lawsuits or situations related. It is suggested to address to an attorney to legally represent you and your interests in front of the authorities. In many cases like the above-mentioned, a power of attorney must be issued before starting the legal procedures.
You can contact our law firm in China if you need additional details about the use of a power of attorney in China.


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