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Establishment of a Foreign Invested Enterprise in China

By EU SME Centre | Guidelines      10.07.2012     Tags: Other

Investment is a common entry mode to the Chinese market. It requires the investor to be well aware of market opportunities for his/her business and to be no less familiar with legal, tax and administrative conditions. This guideline shall give an introduction and practical advice on the steps needed for the establishment of a foreign invested enterprise. It is necessary to bear in mind that although national legislation provides the legislative framework for foreign investment, provincial and local authorities may, within discretion given to them by the central authorities, adopt more detailed rules which may then vary locally. It is also necessary to take into account that different industries have different and/or additional rules. In addition to the investment vehicles discussed below, there are other available forms, e.g., partnerships or cooperative joint ventures. However, these are not commonly used at present. We suggest reading below guideline together with some of our other guidelines, e.g., on representative offices or the corporate income tax.

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