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Common Investment Vehicles in China
The most basic form of foreign business presence in China is the Resident Representative Office (RO). A China Representative Office provides a permanent base from which its resident personnel may conduct non-profit business activities related to foreign enterprises. As a practical matter, it is desirable, and in most cases necessary, to establish a formal Representative Office for a foreign company to do the following in China
Powers and Duties of the Key Roles in a China Company
According to the Company Law of the PRC, a limited liability company shall have at least one shareholder, one executive director, one supervisor, one general manager and one legal representative. The primary powers and duties of those key roles are set forth in the Company Law. The details are as follows:
China’s Registered Capital Registration System
According to the current Company Law of the PRC, the registered capital of a Chinese limited company is the capital or shares subscribed by all the shareholders. The liability of the shareholder of a limited liability company is limited to the amount of its subscribed capital contribution, while the liability of the shareholder of a joint‑stock limited company is limited to the nominal value of its subscribed shares.
Setting up Wholly Foreign Owned Enterprise in Shanghai
Wholly Foreign Owned Enterprise (WFOE), is a limited liability company, the establishment of which is governed both by the Company Law of PRC and Foreign Investment Law of the PRC. A WFOE can engage itself in approved business activities and issue tax invoices on its own. It is a corporation and a tax resident. All shareholders of WFOE should not be Chinese nationals.
China Beijing Deregistration of Resident Representative Offices of Foreign Enterprise
The Resident Representative Offices of Foreign Enterprise (hereinafter referred to as “RO”), which refer to an office established in China by a foreign enterprise to engage in non-profit activities related to the business of the foreign enterprise in accordance with relevant regulations. RO does not have legal personality.
How to Set up a Café in Beijing
First, investors need to lease café operating premises before starting the registration process. According to experience, the site selection should avoid the residential building area, and choose a place with water supply, power supply, ventilation, and smoke exhaust as sufficient as possible. In order to avoid being rejected when applying for business license or other special license
Exercise of the Right of First Refusal by Shareholders of a Limited Liability Company Incorporated in the PRC
The shareholder’s right of first refusal is established based on the attribute of combination of people of the limited liability companies, and the purpose is to maintain the trust relationship between the shareholders. The direct legal basis is Article 71 and Article 72 of the Company Law of the People’s Republic of China.
Termination of Foreign Invested Enterprises
When the conditions for the dissolution of foreign invested enterprises are met, an application for termination shall be submitted on its own and reported to the examination and approval authority for approval. A liquidation group shall be established within 15 days from the day when the cause of dissolution arises, and liquidation shall begin.
Enterprises will be Allowed to Apply for Dormancy in China
What is dormancy of enterprise? Dormancy of enterprise means that an enterprise is allowed to suspend its operation while still retaining its registration status with the registry office. Dormant companies are quite common in overseas countries or regions. For example, in Hong Kong, a private company may pass and deliver to the Registrar of Companies for registration a special resolution declaring
Shenzhen Commercial Entities May Apply for Business Suspension Now
According to the Company Law of the PRC, if a company voluntarily suspends operations for more than 6 consecutive months after opening, its business license will be revoked by the registration authority. Such provision is really unfriendly to companies that are temporarily in financial difficulties and unable to operate normally, but do not intend to close down. In this regard