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Streamlining of business registration in China

To lure more businesses to its country, China is planning on simplifying its business registration process concerning foreign-invested enterprises. It is known as the “One Window, One Form” policy. This process changing the business filing and registration process will take effect on June 30, 2018.

Rather than dealing with a number of different offices, foreign investors will now have one place to go concerning business registration requirements. Investors can then go online to access national, provincial and city level government services. There will no longer be requirements to appear in-person during the registration process.

Challenges in investing in businesses in China

Doing business in China is challenging. China has an extensively regulated economy. Doing business may necessitate sharing technology and trade secrets. It will mean securing Chinese partners. Of course, it is important to understand its culture.

This is also true when it comes to investing in other companies. Investors will still have to deal with a whole range of legal issues including:

  • Creation of companies
  • Dealing with issues concerning corporate structure
  • Locating joint venture partners
  • Preparing investment agreements
  • Assessing risks for investing in these companies

While the stated purpose for simplification of the business registration process is to make it easier to do business in China, not getting bogged down in red tape will be difficult. It is invaluable to have an attorney specifically representing you and who has extensive experience in Chinese investment, in helping set up businesses, and who understands the laws.

Without understanding what you are getting into ahead of time, you could spend a significant amount of money only to find out you are not in compliance with Chinese requirements.

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