The Small-Medium Enterprise Bible

July / August 2004 China Briefing

In this popular and pragmatic issue we deal with the various structural issues that affect international small-medium enterprises when considering establishing an operation in China. It includes a main article by Chris Devonshire-Ellis, Senior Partner of Dezan Shira & Associates, “Setting Up In China – Business Registration Options and Basic Tax Issues” and deals with the establishment of Representative Offices, what you can and can’t do, Wholly Foreign Owned Enterprises, and establishing your manufacturing or service business in China, including maximizing 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. Chinas Free Trade and Development Zones are also covered, as are the establishing of joint ventures, and their pros and cons. Basic China due diligence you can conduct yourself is also described, including a copy of a Chinese domestic company business licence and it’s defining statements, as well as the now-famous and light hearted piece “The Ten Commandments of China Business”, which has now been reproduced elsewhere countless times. A second article, “Chinas New Regulations for Establishing Foreign Owned Trading Companies” by Sabrina Zhang, Regional Partner, Dezan Shira & Associates Beijing rounds off the issue which has become an industry standard as a starting point for new-to-China small-medium businessmen around the world.