Legal & Regulatory

Tax inspection on offices premises in Shanghai

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Earlier this year, a new policy of conducting an on-sight tax inspection for any new representative office (RO) or wholly foreign owned enterprise (WFOE) has come into practice in Shanghai. Under this current practice, the tax inspection on the office premises will have to be conducted before tax registration can begin. Because the tax officer […]

Overseas bourses now allowed representative offices on mainland

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Aug. 31 – As the China Securities Regulatory Commission announced earlier this year, foreign stock exchanges are now able set up representative offices to promote their organizations and conduct research on the mainland. The Measures for the Administration of Foreign Stock Exchanges’ Representative Office in China, which came into effect July 1, permits overseas bourses […]

New restrictions on processing trade come into effect

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China announced a new policy restricting processing trade in an effort to reduce a growing trade surplus. As approved by the State Council, the Ministry of Commerce and the General Administration of Customs jointly issued Announcement No. 44 introducing a new catalogue of restricted commodities on July 23. The new policy, which took effect August […]

China looks to deal with rising number of labor disputes

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State media announced today that China’s top legislature started to read the draft law on labor dispute mediation and arbitration on Sunday amid an increasing number of labor disputes that emerged in the country. “The draft bill has summed up the experience in solving labor disputes, which also takes new situation and problems into account. […]

Additional post-establishment requirements for companies leasing properties in Shenyang

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Shenyang is currently a hotbed for foreign investment, particularly in the high-end retail, real estate and manufacturing sectors. When establishing a company or a branch office the State Tax Bureau requires a Certificate of Tenancy to be issued by the Housing Management Bureau. This sounds straightforward enough, however in order to obtain this document a […]

China’s insurance watchdog issues draft ruling on FDI in sector

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China issued a draft ruling yesterday, clarifying the criteria for foreign investors seeking to buy stakes under 25 percent in domestic insurance companies. According to an announcement on the China Insurance Regulatory Commission’s website, overseas investors in Chinese insurance companies must have more than US$2 billion in assets and have made profits for three consecutive years. […]

Sarbanes-Oxley: Five years on

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By Andy Scott Aug. 2 – Monday was the fifth anniversary of the signing of the Sarbanes Oxley Act, a law that has had a huge impact on business and accounting practices both in the United States, and overseas. One will remember that as a result of the financial scandals in the United States like […]

China announces new restrictions on processing trade

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China announced a new policy on Monday seeking to curb the growth of processing trade in labor-intensive sectors, Beijing’s latest attempt to reduce the country’s soaring trade surplus. Set to take effect August 23, 2007, the new regulations will restrict processing trade of 1,853 products in plastics, furniture and textiles and other labor-intensive industries. According to a […]

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