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China Briefing is a monthly magazine and daily news service about doing business in China. We cover topics relating to the Chinese economy, the market in China, foreign direct investment and Chinese law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates




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July / August 2006: Common Mistakes & Misperceptions When Investing In China - And How to Avoid Them

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In this issue we deal with the various structural issues that affect your manufacturing or service business in China, and how to maximize your return on investment by paying attention to detail in tax structuring, legal structuring issues, calculating registered capital amounts, VAT rebates and profits repatriation matters. We highlight common problems and mistakes made when processing approvals applications, how to avoid these and how to get the most from your China investment. It includes the following articles:

"Faulty & Inefficient China Business Applications"

By Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates.

This extensive and detailed piece covers common mistakes and problems that occur in China when investors are not sufficiently aware of Chinas foreign investment law, and what can be done to mitigate against these issues. The article explores issues affecting China Representative Offices, Foreign Invested Commercial Enterprises, Wholly Foreign Owned Enterprises as well as Joint Ventures, and examines subjects such as the dangers of undercapitalization, misunderstanding the complete financing aspects of registered capital, the variety of tax treatments that need to be considered when investing in China and the situations that affect these. In addition it examines IP problems, mergers & acquisitions in China, considerations when hiring Chinese staff, and other China operational pitfalls to be aware of.



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Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at china@dezshira.com, download our corporate brochure or visit at us www.dezshira.com


Dezan Shira & Associates, Twenty years of Excellence

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