China Foreign Direct Investment ( FDI ) legal framework

The Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, was promulgated by the National People's Congress in 1979, then the work of utilizing foreign capital as an important content of opening up to the outside world initiated as China's fundamental principle. After twenty years of great efforts, the scale of absorbing foreign capital increasingly expanded as well as the level was increasingly upgraded when China's law and managerial system on foreign investment have been gradually perfected. The achievements won the whole world's attention, which effectively promoted the continuous, fast and healthy development of national economy.

As for the legal framework, the main laws and regulations for foreign investments in China include:

Major Foreign Investment Laws and Regulations

* The law of P.R.C. on Chinese-Foreign Equity Joint Ventures and its implementation regulations;

* The law of P.R.C. on Chinese-Foreign Contractual Joint Ventures and its implementation regulations;

* The law of P.R.C. on Wholly Foreign-Owned Enterprise and its implementation regulations;

* The law of P.R.C. on Foreign-invested enterprises, the income tax and its implementation regulations;

* Provisions on Guiding Foreign Investment Direction; Industrial Catalogue for Foreign Investment; Catalogue of Advantageous Sectors for Foreign Investment in Central and Western Regions;

* The law of P.R.C on the Protection Taiwan Compatriots' Investment.

(Note: the related laws and regulations also apply to the investments from Hong Kong, Macao and Taiwan in China mainland.)

General Laws and Regulations

* The Company Law of the People's Republic of China;

* The Contract Law of the People's Republic of China;

* The Insurance Law of the People's Republic of China;

* The Arbitration Law of the People's Republic of China;

* The Labor Law of the People's Republic of China;

* Provisional Regulations of the People's Republic of China on value-added Tax;

* Provisional Regulations of the People's Republic of China on Consumption Tax;

* Provisional Regulations of the People's Republic of China on Business Tax.

International Treaties

* Bilateral Investment Treaties;

* Bilateral Agreement on the Avoidance of Double Taxation.

As a preeminent PRC China Business Consultant in the field of foreign direct investment (FDI), Tommy China Business Consulting has over the years successfully advised a significant number of foreign clients with their FDI projects in a wide range of industries across China advise clients on Chinese laws and regulations governing foreign direct investment in China; assist clients in feasibility studies of investment projects; assist clients in negotiating joint venture projects and franchising; assist clients in setting up representative offices and wholly-owned enterprises; assist in the preparation of a complete set of investment documents (including joint venture contracts, articles of association, land use right contracts, intellectual property rights, know-how licensing agreements, and transfer agreements); we draft, review and comment on transactional documents, negotiate all terms of these documents on our client’s behalf, and monitor the complete investment or divestment process for our clients in order to safeguard against possible pitfalls. assist and represent clients in communication and coordination with business partners and/or governmental authorities; and advise on equity or share transfers and assignment transactions, mergers and acquisitions and split transactions, liquidations, dissolutions, winding-up, and franchising. The team of lawyer and attorney is organized and managed by Tommy China Business Consulting, with offices in Beijing, Shanghai, Shenzhen, GuangZhou, HangZhou, XiaMen,NanJing,NingBo, Xi'an,ChongQing, Wuhan, Changsha and ChengDu