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Power of Attorney in China

Power of Attorney in China

Updated on Tuesday 08th January 2019

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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 needs to offer information about the scope of authorization and it can comprise authorizations to handle the sale, transfer, gifting, mortgaging, leasing or division of the subject lands/buildings, re-issuance of land/building deeds, tax payments, and other aspects which are connected to the management, proceeds, and disposals of the subject lands and/or 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 is the power of attorney 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 an extremely important three-stage procedure, the power of attorney is usually issued in little time. Our team of local lawyers in China are able to offer information about how the power of attorney can be granted and used.
 

The need for a power of attorney in litigation cases

 
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.
 

The authentication of the power of attorney

 
The power of attorney which is used outside China’s borders needs to be authenticated with the public notary in order to attest the identity of the person for which the document is issued. Our lawyers in China can draft the power of attorney on your behalf which is then legalized by the Consulate or Embassy in China. Moreover, the Department of Foreign Affairs and Trade in China is in charge of authenticating the notarized power of attorney. Regardless of the country of origin, if you need a power of attorney for a specific period of time and for matters like real estate transactions, we invite you to get in touch with our team of advisors and find out more about such an important document.
 

Do I need a POA for real estate transfers?

 
Yes, if you would like to buy or sell a property in China and you live in another country, you can solicit the power of attorney for such real estate transactions. Our Chinese lawyers can act on your behalf with a power of attorney if you need to make several real estate transactions in China. We are at your disposal with complete legal support and information regarding the power of attorney used in the real estate sector.
 

The validity of a POA in China

 
The limited, the general and the temporary power of attorney are the main types of documents issued in accordance with the necessity and the needed durability. For example, a limited POA is issued for certain operations, compared to the temporary one which is issued for a specific period of time. As for the general power of attorney, this is normally necessary for all kinds of operations and/or purposes. There are cases in which a POA becomes ineffective, especially in situations in which the grantor suffers an injury or dies. Healthcare decisions for the grantor can also be established with the power of attorney if a person wants to. The grantor is the only one in charge of deciding for specific powers related to healthcare matters. You may request legal assistance if you are interested in the power of attorney for healthcare purposes. 
 

Choosing the agent to represent you with a POA

 
The legal and financial matters can be handled by an experienced agent and a power of attorney who must act in compliance with your conditions and decisions. A fair-minded and trustworthy agent who understands his/her responsibilities with commitment and seriousness is the one who can be in charge of your financial matters like investments, credit loans, bank accounts or insurance policies. A person who has the power of attorney can be in charge of the financial matters and assets of an individual living in China or of a foreign investor looking to set up a business in this country without having to participate physically for the procedures. We invite you to address to our Chinese team of lawyers and find out more details about how we can act on your behalf with a power of attorney in China.
 

Conclusions about the power of attorney in China

 
Even though our lawyers can entirely explain the concept of the POA in China, we invite you to read a few important facts about such an important document, with the mention that you can receive legal assistance at any time:
 
  • the power of attorney needs to be issued in the English and Chinese languages;
  • all the business activities can be performed in the name of the grantor with the help of a POA;
  • a power of attorney can authorize a person to deal with real estate transactions;
  • for tax payments, disposals, sales or transfers in China, a power of attorney can be issued;
  • a POA can be necessary for arbitration or litigation cases in China;
  • you can entrust our attorneys in China with a power of attorney in any of the above-mentioned cases;
  • the Department of Foreign Affairs and Trade in China is in charge of the authorization of POA;
  • the Chinese Consulate or Embassy is in charge of validating the power of attorney;
  • a revocable power of attorney can be concluded at any time;
  • a lawyer with the power of attorney can be in charge of your financial aspects related to your company but not limited to this.
 
It is good to know that a power of attorney in China can be issued in a short period of time, regardless of the purpose of such a document. We invite you to get in touch with our team of lawyers in China who can represent your interests with the help of the power of attorney. This important document is at the disposal of any foreigner who would like to operate in China without having to travel in this country. Let our professional team handle all of your request in matters of POA.
 
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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