Signing Contracts with a Company in China

Signing Contracts with a Company in China

Updated on Tuesday 19th April 2016

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Signing- Contracts-with-a-Company-in-China.jpgSigning a business contract with a Chinese company is a common practice for many investors in the country. Business agreements in China are formal and they usually mark the beginning of the relationship between parties (and they can still be amended as needed), as opposed to the European model that will often times mark the conclusion of an arrangement. 
When doing business with a Chinese company it is advisable to conclude the needed arrangements according to the Chinese law. Our lawyers in China can advise you upon the clauses that you can include in the contract and the best ways to begin your new business relationship in the country.

Formalities for signing contracts in China

When signing contracts with a company in China, you should try to visit the company if possible. This will give you a real image about your business partner and will help you validate information, like the business address. Alternatively, you could obtain a copy of the company’s business license and a previously concluded contract to verify the seal of the company. If the information included in the contract is inconsistent with the information gathered after performing a simple verification, you should postpone the execution of the contract.
A company due diligence can be performed before signing an agreement with a Chinese company. One of our lawyers in China can help you with this process that includes a detailed verification of the company so that you can be sure that you will sign a valid contract.

Advice for foreign investors in China

Foreign investors doing business for the first time in China should make sure that the contract signed with a Chinese company includes detailed information about the business requirements and the legal implications for breaching the contract. When the contract is concluded for small amounts, the signing requirements are usually less rigorous but in order to make sure that the contract is enforceable, it should be signed by the company’s legal representative.
Our law firm in China can provide assistance for you and your company whenever doing business with a Chinese counterpart. Our lawyers will verify the business and its legal representative.
For more information about doing business in China, including opening a company, you can contact our Chinese attorneys.


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