Corporate & FDI

Closing a China company requires tax, employee, bank, and liquidation workstreams to line up. Foreign investors should map exit risks before starting deregistration.

Foreign companies in China need clear chop custody, approval rules, emergency replacement plans, and contract controls to prevent seal misuse.

Foreign buyers in China M&A should test licenses, labor, tax, data, IP, and deal approvals before signing. A China deal often turns on operational risk, not just valuation.

Foreign companies can still register a representative office in China, but they should understand the document burden, non-profit activity limits, annual compliance, and why many businesses later move to a WFOE.

Choosing between a WFOE and a joint venture in China is not a branding exercise. Foreign companies should test market access, control, licensing, cash flow, governance and exit risk before they incorporate.

A practical, step-by-step guide to setting up a Wholly Foreign-Owned Enterprise (WFOE) in China — when it’s the right vehicle, the registration process, and the five pitfalls foreign founders underestimate.

Limited liability in China is easier to lose than most foreign investors realize. Address mingling, personnel overlap, financial commingling — any one can trigger personal liability. Real case: RMB 8 million in contingent exposure eliminated.

China’s Negative List for foreign investment is only 15 pages — but it defines your entire market entry strategy. A practical guide to prohibited vs. restricted sectors, the VIE question, FTZ exceptions, and the six most common mistakes foreign companies make.

Two common corporate structure traps for foreign-invested enterprises in China: unpaid registered capital under the 2024 Company Law and corporate veil piercing through address and personnel mingling. Plus an IP holding company strategy.