The regulatory regime governing foreign invested enterprises (FIEs) in China (more precisely, the People’s Republic of China, the PRC) has been changing rapidly in recent years. Legislative changes have been endeavouring to simplify the procedures for foreign investors in relation to most of their investment activities in China. However, in practice setting up an FIE in China is still a demanding process, as the legal requirements and administrative conditions are numerous and complex.
This Guideline aims to provide SMEs with a complete picture of the formation process for incorporating FIEs in China. It features checklists of documents needed to establish a FIE, details the approval and record filing requirements administered by governmental authorities, and provides illustrative case studies. There is also a commentary on the important issues facing foreign investors in China, including the legal liabilities of the statutory bodies of FIEs, national security review, taxation, as well as the implications of the Foreign Investment Law (Draft).
Please note that this guideline is based on the 2015 Catalogue Guiding Foreign Investment. For updated information on the 2017 Catalogue, please check our Law Database.
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