September 2016
Starting a China Company is About to Get a Whole Lot Easier
As of October 1, 2016, a new item will be added to China’s “WFOE Law” which will simplify formalities for establishing a foreign owned company in China. Other major changes such as dissolution, merger and extension of the operating period will also be made easier. The simplifier procedures mainly focus on the examination and approval …
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The Conflict of Laws of the People’s Republic of China
Before the Law of the People’s Republic of China on Application of Law in Foreign-related Civil Relations was promulgated on Oct. 28 th , 2010, there wasn’t a special law regulating the conflict of laws in mainland China. Back then, the conflict of laws was dispersed in different laws, such as Marriage Law, Contract Law, …
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Being Smart About Choosing Applicable Law
As a foreign business entity or individual, when entering into an agreement with a Chinese business entity or individual, the first choice to be made should be choosing the applicable law for the pending agreement. In accordance with the Contract Law of the People’s Republic of China, the parties of an agreement involving foreign factors …
Special Protections for Female Employees in China
Foreign companies doing business in China are often confronted with issues in connection with special protections provided for women employees under Chinese laws and regulations. Chinese laws outline special rights for women during pregnancy and for a time after birth. Major laws and regulations which address these issues include: The Labor Contract Law of the …
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Tips for Importing Infant Milk Powder
China’s government and public pay more and more attention to food security these years, especially to the food for infants and children. Therefore, if a trade company wants to import infant milk powder into China, it needs go through more strict inspection procedures and more complicated register or record proceedings. Recently, a client of us …
Shareholders Only Have Limited Liability? Not Always True
That shareholders only bear limited liability within the scope of their investment into the company is an essential idea of modern corporation system. However we have seen more and more cases in mainland China’s legal practice in “piercing the corporate veil”. If the creditors of a limited liability company can prove that there is no …
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Go for litigations with less cost and less burden
On September 12, 2016, the Supreme People’s Court promulgated its Several Opinions on Further Promoting the Separation of Complicated Cases from Simple Ones and Optimizing the Allocation of Judicial Resources. By virtue of these opinions, the Supreme Court calls for the establishment of the speedy trial in administrative litigations as well as utilizing and developing …
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4 Major Considerations before Establishing a Direct Sales Operation in China
We’ve been getting a lot of inquiries recently from foreign companies seeking to break into the Direct Sales market in China. The Direct Sales license is one of the most challenging operational licenses to obtain in China in term of requirements for the investor, products and capital input. Based on past experience, the following is …
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Chinese Companies Go Abroad
I had a meeting not long ago with the CEO of a European company, the largest consumer electronics distributor in the company’s home country. In this meeting the CEO advised me that they already had a contract with a major Chinese electronics company for distribution in Europe, and they just wanted to confirm a few …