Kaizen - National and Local Laws, Regulations and Rules Governing Foreign Direct Investments

A Wholly Foreign Owned Enterprise (WFOE) is a Limited Liability Company established in China by foreign investor(s). A WFOE is very much like a LLC in the USA that it requires one member only.
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The registration procedures of a Wholly Foreign Owned Enterprise (WFOE) could be divided into 3 phases: aproval phase, registration phase and post-establishment phase.
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A Wholly Foreign Owned Enterprise (WFOE) could be terminated by way of liquidation or deregistration by its investor(s) or when the conditions of termination in its Articles of Association occurs.
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China Taxation

Under the current tax system in China, there are 25 types of taxes which could be divided into 8 categories. The major ones are Business Tax, Value Added Tax and Enterprise Income Tax. More

Representative Offices are also liable for Business Tax and Enterprise Income Tax. However, a RO could be exempted if its parent company is in the manufacturing business.
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Any individual who has domicile in China or who has no domicile in China but has resided in China for one year or more shall pay Individual Income Tax on his world-wide income.
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LAWS, RULES AND REGULATIONS OF FOREIGN DIRECT INVESTMENTS IN CHINA

National Laws, Regulations and Rules Governing Foreign Direct Investments

	Company Law of the People's Republic of China (revised 2005)
	Chapter I General Provisions
	Chapter II Establishment and Organizational Structure of a Limited Liability Company
	Chapter III Transfer of Stock Rights of a Limited Liability Company
	Chapter IV Establishment and Organizational Structure of a Joint Stock Limited Company
	Chapter V Issuance and Transfer of Shares of a Joint Stock Limited Company
	Chapter VI Qualifications and Obligations of the Directors, Supervisors and Senior Managers of a Company
	Chapter VII Corporate Bonds
	Chapter VIII Financial Affairs and Accounting of a Company
	Chapter IX Merger and Split-up of Company, Increase and Deduction of Registered Capital
	Chapter X Dissolution and Liquidation of a Company
	Chapter XI Branches of Foreign Companies
	Chapter XII Legal Liabilities
	Chapter XIII Supplementary Provisions

	Company Law of the People's Republic of China (1993)
	Provisions on Guiding Foreign Investment Direction
	Administrative Measures Governing Foreign Investment in Commercial Sectors
	Detailed Implementing Rules for the Law of the People's Republic of China on Wholly Foreign-Owned Enterprises
	Revised law on Wholly Foreign Owned Enterprises
	Law of the People's Republic of China on Wholly Foreign-Owned Enterprises
	Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures
	Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures
	Detailed Rules of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) on the Approval and Control of Resident Representative Offices of Foreign Enterprises
	Regulations on the Labor Management of the Foreign-Funded Enterprises
	Provisions on the Establishment of Investment Companies by Foreign Investors
	Interim Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors
	Regulations Governing Construction and Engineering Design Enterprises with Foreign Investment
	Law of the People's Republic of China on Enterprise Bankruptcy (For Trial Implementation)
	Provisions on Administration of Enterprise Name Registration

Labour Laws and Regulations

	Labour Law of the People's Republic of China
	Provisions on Administration of Employment of Foreigners in China
	Regulations on the Labor Management of the Foreign-Funded Enterprises

Local Laws, Regulations and Rules Governing Foreign Direct Investments

Shanghai City
	Regulations of Shanghai Municipality on Examination and Approval of Foreign-Invested Enterprises
	Regulations of Shanghai on the Economic and Technological Development Zones
	Regulations of Shanghai Municipality Concerning The Control of Resident Representative Offices of Foreign Enterprises
	Industries Layout Guide for Foreign Investment in Shanghai
	Priority Industries Content for Foreign Investment in Shanghai
	Suggestions of Shanghai Municipality on Implementation of "Interim Regulations on the Establishment of and Administration over Sino-foreign Equity Joint, Sino-foreign Cooperative Occupation Introduction Organization"




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