Foreign companies
come in contact with the Chinese legal system the moment they decide to enter
the Chinese market. Legal aspects must be considered in relation to enterprise
formation, investment approval, real estate, human resources, environmental
protection, Intellectual Property,and taxation.
International companies sometimes must resolve disputes with local companies or contractors. The Chinese legal system's structure might be perceived as an obstacle, Rapid changes in China's legal system require foreign companies operating in China to seek legal services of the highest quality.
International companies sometimes must resolve disputes with local companies or contractors. The Chinese legal system's structure might be perceived as an obstacle, Rapid changes in China's legal system require foreign companies operating in China to seek legal services of the highest quality.
Due
Diligence
We have ever handled so many fraudulent trading
or investment cases in which the foreign partners have all been defrauded or
scammed by their Chinese partners. The reason is all the same that the foreign
partners failed to conduct background check on reliabilities of their Chinese
partners, which could have been easily done before the transactions. We call
this background check “Due Diligence”.
If you want to do business in China or cooperate with a partner, due diligence is an essential step before you go further, and China Law Service (Chengdu ) Limited can offer professional due diligence report to you in accordance with your typical needs. We can deliver highly cost effective solution to the problems of getting behind glossy presentation and cultural confusion to see the real quality and position of the other party of your business or transaction. The staffs with China Law Service (Chengdu ) Limited have more than 20 years’ experience in China company research, investigation and commercial analysis sector. They bring experience and knowledge to the presentation of China company information.
China Law Service (Chengdu ) Limited can research and report on any company in China to the depth required. Information from which selection can be made includes: corporate details, including export license details, business operations, history, strategic or political factors, international connections, financial status, reputation, rating and overall assessment.
Our research facilities in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Chengdu and other major cities in China are well-established businesses. They combine an extensive and painstakingly constructed contact network across China with the China company registration authorities, with good experience in “live” company research through identifying and interviewing knowledgeable individuals concerning any company. This latter capacity is essential in an environment where even data formally collected by the local authorities may not always be entirely trustworthy.
If you want to do business in China or cooperate with a partner, due diligence is an essential step before you go further, and China Law Service (Chengdu ) Limited can offer professional due diligence report to you in accordance with your typical needs. We can deliver highly cost effective solution to the problems of getting behind glossy presentation and cultural confusion to see the real quality and position of the other party of your business or transaction. The staffs with China Law Service (Chengdu ) Limited have more than 20 years’ experience in China company research, investigation and commercial analysis sector. They bring experience and knowledge to the presentation of China company information.
China Law Service (Chengdu ) Limited can research and report on any company in China to the depth required. Information from which selection can be made includes: corporate details, including export license details, business operations, history, strategic or political factors, international connections, financial status, reputation, rating and overall assessment.
Our research facilities in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Chengdu and other major cities in China are well-established businesses. They combine an extensive and painstakingly constructed contact network across China with the China company registration authorities, with good experience in “live” company research through identifying and interviewing knowledgeable individuals concerning any company. This latter capacity is essential in an environment where even data formally collected by the local authorities may not always be entirely trustworthy.
Contract
Review
In many business situations there comes a time
when a relationship or transaction needs to be set down in writing. Contracts
are an integral part of business relationships throughout the world. This is no
less true in China. Chinese contracts are drafted everyday for many different
purposes. A main hindrance to the foreigner doing business in China is the
inability to read a contract he is expected to sign. Even if a translation of a
Chinese contract is produced, the contract is sill written in legal terms. And
complex legal minutia can fill many of the pages of a China contract. For this
reason, it is often advisable to retain legal counsel that is fluent in
Chinese, English, and legal terminology in both languages.
At China Law Service (Chengdu ) Limited, we can produce a Chinese to English translation of a proposed contract. This translation will be carried out or modified by a China lawyer who is fluent at English. By doing this, the rights and interests of our clients will be best guarded. Possible issues that they would be on the lookout for in a contract between a Chinese and a foreigner would be conflicts of law issues between China and another jurisdiction, unequal rights between the two parties, and possible legal ambiguities that could lead to unnecessary litigation in the future. These are just a few of the issues to look out for regarding Chinese contracts.
People in or out of China may sign property leases, vehicle and equipment leases, advertising agreements, web site development and maintenance agreements, banking documents and numerous other contracts in the usual course of business. Retaining a China lawyer can make these contracts simple and easily understandable. The China lawyer may help you with the clauses like negotiating the terms, identifying the parties, completing all blanks, allocating risk, indemnification provisions, warranties, representations, events of default, rights and responsibilities, remedies provisions and so on.
It is always wise to have a competent legal professional review any document before signature. This is true especially in China where a Chinese contract is written in Chinese script. Failure to retain competent legal advice before signing a Chinese contract could lead to unforeseen legal consequences befalling the foreign businessman in China. Please contact China Law Service (Chengdu ) Limited for more information about Chinese contract review
At China Law Service (Chengdu ) Limited, we can produce a Chinese to English translation of a proposed contract. This translation will be carried out or modified by a China lawyer who is fluent at English. By doing this, the rights and interests of our clients will be best guarded. Possible issues that they would be on the lookout for in a contract between a Chinese and a foreigner would be conflicts of law issues between China and another jurisdiction, unequal rights between the two parties, and possible legal ambiguities that could lead to unnecessary litigation in the future. These are just a few of the issues to look out for regarding Chinese contracts.
People in or out of China may sign property leases, vehicle and equipment leases, advertising agreements, web site development and maintenance agreements, banking documents and numerous other contracts in the usual course of business. Retaining a China lawyer can make these contracts simple and easily understandable. The China lawyer may help you with the clauses like negotiating the terms, identifying the parties, completing all blanks, allocating risk, indemnification provisions, warranties, representations, events of default, rights and responsibilities, remedies provisions and so on.
It is always wise to have a competent legal professional review any document before signature. This is true especially in China where a Chinese contract is written in Chinese script. Failure to retain competent legal advice before signing a Chinese contract could lead to unforeseen legal consequences befalling the foreign businessman in China. Please contact China Law Service (Chengdu ) Limited for more information about Chinese contract review
Merger
& Acquisition
On a global basis, mergers and acquisitions
(M&A) were the prevalent method through which multinationals conducted
foreign investment, while “green field” investments were virtually the only
option available to foreign investors in China in the past. However, the
environment for M&A in China has fundamentally changed in recent years,
affected in party by the global economic trend and with the intention of
stimulating M&A related activity, Chinese Government have introduced and
consolidated various laws and regulations since 2002.
The robust growth of China’s economy and its further liberalization of the domestic market after its accession to the World Trade Organization have worked together to fuel the accelerated pace of M&A activity in recent years. It is foreseeable that M&A activity, which offers foreign investors a more immediate method of entering the China market as opposed to “green field” investment, will continue to boom in China in the years to come.
Suppose a US-based company “ABC Co.” has preliminarily identified an ideal target company in China, which it intends to acquire. Before proceeding to conduct an in-depth financial assessment and structure the prospective acquisition, it is advisable to take the following into consideration: 1. M&A transactions in China require examination and approval by Chinese government agencies. 2. The sectoral restrictions applicable to “green field” investment in China are also applicable to foreign-related M&A transactions. 3. Ascertaining the nature and desirable businesses of the target is essential to structuring the M&A transaction.
Due to the general lack of transparency or proper regulations in China, many Chinese companies may have certain irregularities incurred somewhere or sometime in the course of its business. It is imperative that a foreign investor resolve any irregularities before entering into the transaction. Therefore, conducting a legal due diligence exercise is often just as important as conducting a financial due diligence to determine the viability of the target company in a merger and acquisition deal.
The robust growth of China’s economy and its further liberalization of the domestic market after its accession to the World Trade Organization have worked together to fuel the accelerated pace of M&A activity in recent years. It is foreseeable that M&A activity, which offers foreign investors a more immediate method of entering the China market as opposed to “green field” investment, will continue to boom in China in the years to come.
Suppose a US-based company “ABC Co.” has preliminarily identified an ideal target company in China, which it intends to acquire. Before proceeding to conduct an in-depth financial assessment and structure the prospective acquisition, it is advisable to take the following into consideration: 1. M&A transactions in China require examination and approval by Chinese government agencies. 2. The sectoral restrictions applicable to “green field” investment in China are also applicable to foreign-related M&A transactions. 3. Ascertaining the nature and desirable businesses of the target is essential to structuring the M&A transaction.
Due to the general lack of transparency or proper regulations in China, many Chinese companies may have certain irregularities incurred somewhere or sometime in the course of its business. It is imperative that a foreign investor resolve any irregularities before entering into the transaction. Therefore, conducting a legal due diligence exercise is often just as important as conducting a financial due diligence to determine the viability of the target company in a merger and acquisition deal.
Business
Establishment
We have extensive experience with the entire spectrum of
business entities in China, from simple Representative Offices to more complex
Foreign Invested Enterprises such as Wholly Owned Foreign Enterprises (WOFEs)
and Joint Ventures (JVs). We have served hundreds of clients from more than 30
countries in virtually every industry sector. Our consultants have developed an
extensive network of local connections to expedite business registration
projects and to negotiate for favorable incentives for large Foreign Direct
Investment (FDI) projects.
We also provides a wide range of business support services tailored to the needs of Representative Offices and newly established foreign invested companies in China, including accounting services and regulatory compliance assistance.
Registering a foreign company in China is much easier than before as it doesn’t involve approval from multiple local authorities and bureaus if the perspective enterprise isn’t subject to the special administrative measures for permits stipulated by the government. However, the establishment of a foreign company is still a complicated process. Our extensive network of local government bureaus contacts, knowledge of local regulations and experience with hundreds of projects already executed can help you accelerate your entry and growth in China.
Foreign investment companies that engage in business operations in China are required to pay taxes according to China tax laws. The most commonly used forms of business for foreign investment companies are the Representative Office (Rep. Office) and the Limited Liability Company (LLC). The most important tax categories for these forms of businesses are corporate income tax and business tax, which is being transitioned to a new value-added tax (VAT) system, as well as the value-added tax (VAT) for manufacturing, wholesale, retail, and trade.
We assist our clients with their China projects regardless of which stage of development they are in, like researching the business environment, entering the market or already growing their business within China. We are committed to guiding our clients through the challenges of achieving their goals by not only keeping them abreast of current trends but also anticipating how those trends may impact the market they are in. We customize our approach according to our clients’ specific needs.
Our main priority is to provide high-quality services to maximize our clients’ potential for long-term success within China. Our mission is to provide the best solutions for our clients’ China market entry & growth needs and to become the partner of choice for companies and organizations doing business in China.
We also provides a wide range of business support services tailored to the needs of Representative Offices and newly established foreign invested companies in China, including accounting services and regulatory compliance assistance.
Registering a foreign company in China is much easier than before as it doesn’t involve approval from multiple local authorities and bureaus if the perspective enterprise isn’t subject to the special administrative measures for permits stipulated by the government. However, the establishment of a foreign company is still a complicated process. Our extensive network of local government bureaus contacts, knowledge of local regulations and experience with hundreds of projects already executed can help you accelerate your entry and growth in China.
Foreign investment companies that engage in business operations in China are required to pay taxes according to China tax laws. The most commonly used forms of business for foreign investment companies are the Representative Office (Rep. Office) and the Limited Liability Company (LLC). The most important tax categories for these forms of businesses are corporate income tax and business tax, which is being transitioned to a new value-added tax (VAT) system, as well as the value-added tax (VAT) for manufacturing, wholesale, retail, and trade.
We assist our clients with their China projects regardless of which stage of development they are in, like researching the business environment, entering the market or already growing their business within China. We are committed to guiding our clients through the challenges of achieving their goals by not only keeping them abreast of current trends but also anticipating how those trends may impact the market they are in. We customize our approach according to our clients’ specific needs.
Our main priority is to provide high-quality services to maximize our clients’ potential for long-term success within China. Our mission is to provide the best solutions for our clients’ China market entry & growth needs and to become the partner of choice for companies and organizations doing business in China.
Please visit: http://www.tommyconsulting.com/legal_introduction.html
We are interested in acquiring a company in Chengdu. We expect the trsnsaction to be for about £500,000 (pounds sterling). The business has three shareholders who help run the business. It has fewer than five employees. Please confirm you have experience with this level of transaction. If possible, please let me know an estimated cost and how long the DD would take. Thank you very much.
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