Compliance in China. Challenges of Transparency, Interpretation & Enforcement.

Compliance is one of the biggest challenges facing foreign companies operating in China. While there is a law/policy/regulation/suggested standard promulgated by Beijing for almost every aspect of doing business, for the typical Western owned company operating in China, the problem is two-fold: Interpretation and enforcement of the law varies greatly not only from province to…

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When does it make sense to process Chinese VAT rebates in-house?

A European friend of mine is based on China and runs a sourcing agency. The following are excerpts from our discussion on the pros and cons of setting up in-house VAT rebate facilities in China.  I’ve been reading your article “What is VAT and why should I worry about it” on your blog, and it…

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Choosing Your Business Vehicle: Wholly Foreign Owned Enterprises

WFOEs usually take the form of limited liability companies and the liability of the foreign investor in respect of the WFOE is limited to the amount of capital it agrees to contribute.  The risk of proceeding with a WFOE structure is that a foreign investor will not have the assistance of a domestic partner when…

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Experienced or Not. Setting Up in China. Part 1 of 5

Transcript below: Are rep offices in China redundant? Most likely, the answer is NO, since redundant is too strong a word. But the Government made rules stricter and stepped up the enforcement of the rules because many ROs were used outside their business scope; As an example, RO have to be reregistered once a year…

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