The latest issue of China Briefing Magazine, titled “New Considerations when Establishing a China WFOE in 2017“, is out now and currently available to subscribers as a complimentary download in the Asia Briefing Publication Store.
- Situating the WFOE Structure within China’s Changing Investment Landscape
- Pre-establishment Considerations for Setting Up a WFOE in 2017
- Setting Up a WFOE in China: A Step-by-Step Guide
- China’s FIE Registration and the New Actual Controlling Person Requirement
Foreign investors can use a range of investment models to enter the Chinese market. Experienced businesspeople in China note that, for first-time investors and SMEs, the representative office (RO) has traditionally served as the most popular investment structure, long making it the most commonly used model for foreign companies.
This, however, is beginning to change. As the Chinese economy continues to mature, Dezan Shira & Associates has assisted an increased number of foreign investors with the establishment of their wholly foreign-owned enterprise (WFOE) – an investment model with a far wider business scope than the RO.
The past year, in particular, has been a formative one for the China WFOE. In tandem with its rise in popularity, the Chinese government has implemented new regulations affecting the WFOE business structure and setup procedure, mostly by cutting red tape and streamlining the overall process.
In this edition of China Briefing, we guide readers through all these changes: from the reasons behind foreign investors’ preference for the WFOE as an investment model, to managing China’s new regulations. We discuss how economic transformations have favored the WFOE, as well as the investment model’s utility, and detail key requirements that businesspeople need to examine before initiating the WFOE setup process. We then walk investors through the WFOE establishment process, and, finally, explain the new and idiosyncratic “Actual Controlling Person” regulation.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
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Dezan Shira & Associates Brochure
Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.
An Introduction to Doing Business in China 2017
Doing Business in China 2017 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates in January 2017, this comprehensive guide is ideal not only for businesses looking to enter the Chinese market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.
Navigating HR Audits in China
Recent changes in China’s labor market have underscored the importance of having both an efficient HR system and a satisfied and reliable workforce, and the HR audit is a useful tool to ensure this. In this issue of China Briefing magazine, we provide a guide for conducting HR audits in China. We analyze why the HR audit is especially important for foreign companies operating in the country, and then detail the different HR audit models and procedures that are available to firms.