Sometimes when doing business in China, what you think you see may not always be what you get, Numbers can be misleading and many times western businesses can be lead astray by some very adept Chinese pied pipers. The watchwords of ‘due diligence” and “verify”, “verify”, “verify” are often relegated to the bottom of a …
Article 63 Paragraph 2 of PRC Employment Contract Law(“ECL”) give rise to the confusion of whether a company may return the dispatched employee to temp agency relying on the ground that the objective circumstances relied on at the time of the conclusion of the engagement contract(please note that is not employment contract) between the company …
This entry is dedicated to the description of the procedures to open a travel agency, in fact it seems that an increasing number of foreign operators are interested in entering this market. The Travel Agency Regulations and the China National Tourism Administration The State Council of the People’s Republic of China and the China National …
Today I am introducing a new theme, namely “electronic-discovery,” this, not only because every day we are using electronic means and documents doing our work, end we need to become more familiar with those means, but also because in determined circumstances there the necessity to prepare and gathering information in an electronic format to be …
Electronic discovery (or e-discovery) and its usage in China Read More »
Today I would like to address the procedures regarding the establishment of a foreign-invested enterprise ( the “FIE”) in China. In order to set up a FIE, a foreign investor should follow the general steps as follows: First, the foreign investor should make application with the Administration for Industry and Commerce (AIC) to reserve a …
General Procedure for the establishment of a FIE in China Read More »
Today I am going to spend a few words about “delisting of listed companies” and possible reforms for the financial markets, in fact this topic is closely related to the ones we have examined in the last entries. In a move to set up sound, fair market for investors, the top securities regulator is studying …
In the past, many technology companies in China have done business through Variable Interest Entities (VIE) in order to gain access to foreign capital and to help expand their business. A few months ago, the dispute over the ownership of Alipay, a leading on-line payment service provider in China that decided to cancel all of …
Today I would like to address the documents required when setting up a FIE in China regarding the establishment of a foreign-invested enterprise ( the “FIE”) in China. Generally speaking, a foreign investor should prepare the following documents when applying to set up a FIE in China: – An original application for local counterpart of …
What Documents should be prepared when setting up a FIE in China Read More »
Having explained “takeover defenses,” today is the turn of “prohibited trading activities” when acquiring a listed company. This entry completes the series about takeovers of listed companies. In bringing about a takeover of a listed company, a party cannot engage in “prohibited trading activities” as defined in the Securities Law 2006 (http://www.csrc.gov.cn/pub/csrc_en/laws/rfdm/statelaws/200904/t20090429_102757.htm). Section IV of …
Prohibited Trading Activities When Acquiring a Listed Company Read More »
As we all know, PRC government allow a foreign investor to make capital contribution to the registered capital of a foreign invested enterprise (“FIE”) by installment; however, there are discrepancy existing in rules regarding requirement on the amount of initial payment to the registered capital. The PRC Wholly Foreign Owned Enterprise Law Implementing Rules (revised …
How Much the Initial Payment for the Registered Capital of a FIE should be? Read More »
