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Chinese Legislation Related to Foreign Investments

Chinese Legislation Related to Foreign Investments

China is a major and respected economic force which continues to strengthen its position of world’s leading destination for foreign investments. The legislation in this sense has to keep up with the amount of investments which enter China each day. It is good to know that the Chinese legislation related to foreign investments is less restrictive and offers solutions to business persons interested in establishing their operations in this country. As for the company formation in China, we mention that our team of specialists in company incorporation in China can provide complete support for foreigners in this sense.

What are the investment laws in China?

The People’s Republic of China on WFOE (wholly foreign-owned enterprise) and Foreign Invested Enterprises in China is the main set of laws observing the foreign investments in this country. Moreover, the applicable laws for nationals, such as the Companies Act, the Commercial Code, or the Competition Law are also available for foreigners willing to open a WFOE in China.

What types of companies can foreigners open in China?

Foreign investors in China can set up WFOEs, joint ventures with Chinese partners, or foreign contractual joint-ventures, in respect with the above-mentioned law and with the improvements which might intervene in the Chinese legislation related to foreign investments. We remind that if you are interested in registering a company in China as an entrepreneur from abroad, our company incorporation agents in China are ready to offer complete information and help, regardless of the business you wish to introduce on the Chinese market. You can also ask for support in registering the company for VAT in China.

New provisions of the Foreign Investment Law in China

In order to eliminate business barriers for foreigners interested in accessing certain industries in China, and to ease the registration process of a firm, the authorities continue to improve the legislation related to foreign investments. In this sense, entrepreneurs won’t need the business approval issued by the Ministry of Commerce, as they can simply register the company. Likewise, even though state-owned companies cannot be sustained by foreign investments, the Chinese authorities want to benefit from the innovative technologies offered by foreigners. 

If you want to know more about the investment field in China and the business opportunities in this state, we invite you to contact our team of company incorporation representatives in China.