China

On 16 April 2004, the Ministry of Commerce (“MOC”) promulgated a new regulation, namely, The Administrative Measures Governing Foreign Investment in Commercial Sectors (“the Administrative Measures”). Foreign investor is permitted to set-up wholly owned enterprise engaging in commission agency, wholesaling or retailing businesses in China with a much lower threshold requirement effective from 11 December 2004. Furthermore, geographical restrictions on the locations for setting up the foreign-invested wholesaling and retailing enterprises will be abolished after 11 December 2004.   Definition of Foreign-Invested Commercial Enterprises (“FICE”) Article 3 of the Administrative Measures defines FICE as enterprises established by foreign investors to engage in commission agency services, wholesaling, retailing or franchising businesses. Please note that although franchising is included as one of the permitted scope of businesses for FICE, article 19 of the Administrative Measures requires foreign investors engaging in franchise licensing to comply with other related laws promulgated by the government. […]

(Adopted at the 20th Session of the Standing Committee of the 12th People’s Congress of Shanghai Municipality on 16 June 2005 and effective as of 1 September 2005.) Article 1 These Provisions have been formulated in accordance with the Administration of Registration of Enterprise Names Provisions and the relevant laws and regulations in light of the specific circumstances of Shanghai in order to standardize the administration of registration of enterprise names, protect the lawful rights and interests of owners of enterprise names and safeguard fair competition.   Article 2 These Provisions apply to the registration of enterprise names and the relevant administration activities within the administrative area of the Municipality . Article 3 The Shanghai Administration for Industry and Commerce shall be responsible for verifying and approving enterprise names that commence with the name of the municipal level administrative division; each county branch of the industry and commerce administration shall […]

According to Article 2 of the PRC Regulations on Administration of Registration of Representative Office of Foreign Enterprise, representative offices of foreign enterprise (hereinafter referred to as “representative office / RO” refers to the offices established by foreign (region) enterprises in accordance with the Regulations within China engaging in non-profit activities that are related to their business. A representative office / RO is not a separate legal entity. It can only engage in non-profit activities within the scope of business specified in its registration certificate.   1. Activities Prohibited Article 13 of Regulations on Administration of Registration of Representative Office of Foreign Enterprise clearly stipulates that a representative office / RO cannot engage in profit-making activities. That means a representative office / RO is not allowed to enter into any contract or agreement that may generate revenue in its own name. It cannot place order to suppliers, receive and deliver […]

China’s new Individual Income Tax law (“IIT”) law came into effect on January 1, 2019. According to the new IIT law, income from wages and salaries shall be subject to the seven-bracket progressive tax rates and shall be combined on an annual basis for computation of individual income tax. Individual income tax shall be calculated based on the cumulative withholding method, withheld and prepaid on a monthly basis, and annual tax clearance shall be arranged as per the actual income during the period from March 1 to June 30 of the following year.   From January 1, 2019, individual residents can enjoy six special additional deductions, including children’s education costs, continuing education costs, critical illness medical expenses, housing mortgage interest or housing rent, and elderly care expenditures, when calculating comprehensive taxable income.   Since the end of year 2018, the tax authorities have made a series of publicity and interpretation […]