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The three principles of foreign investments in Chinese real estate Market
In 2006, the Ministry of Commerce and other departments have issued a series of documents to limit foreign investments in domestic real estate market. Under the terms of these documents, foreign investments in domestic real estate market shall adhere to the following principles:
The Practical Operation of Increasing Registered Capital by Exclusively Foreign-owned Enterprises
The process for an exclusively foreign-owned enterprise increasing its registered capital seems various and many. Actually, it only needs to do as following three steps. Firstly, prepare application materials. Secondly, apply to the Commerce Commission approving to establish the enterprise, submit application materials, await the approval and acquire corresponding approval documents. Thirdly, take approval documents and application materials to handle commerce register in corresponding Commerce and Industry Bureau.
Analysis on Tax Involved in Stock Equity Transfer
Stock equity transfer is civil legal acts that a shareholder in a company transfers its equities according to law to transferee and makes transferee enjoy the equities of these stocks. Stock equity transfer, a kind of real right change act, must be registered before taking legal effect of rights transfer in China. In market economy, during stock equity transfer, transferer usually pays certain consideration to transferee, that is to say transferee gain concrete benefits through stock equity transfer. During stock equity transfer, signing a Stock Equity Transfer Agreement is needed, which makes clear regulations on the rights and obligations of transferer and transferee and of which the regulations on transfer price is the basis of paying taxes. Now, as far as the compensated transferring of stock equity is concerned, we will brief the tax involved in stock equity transfer.
Law Issues of the Establishment of Resident Offices of Foreign Enterprises
The Regulations on Administration of Registration of Resident Offices of Foreign Enterprises (hereinafter referred to as Regulations on Administration of Registration), which was adopted at the 132nd executive meeting of the State Council on November 10, 2010, and entered into effect as of March 1, 2011. When the new regulations entered into effect, the Measures for the Administration of Resident Offices of Foreign Enterprises (hereinafter referred to as Measures for Administration of Registration in 1983) issued in 1983 was simultaneously annulled. The major difference between the two is that the new regulations accurately defines resident offices of foreign enterprises are non-profit agencies and can not engage in any profit-making operations, except as otherwise provided by international treaty signed by China. However, in accordance with the Measures for Administration of Registration in 1983, resident offices of foreign enterprises shall be understood as those engaging in non-direct- profit-making operations. In other words, in accordance with the Measures for Administration of Registration in 1983, resident offices of foreign enterprises can engage in profit-making operations indirectly. Besides, compared with the Measures for Administration of Registration in 1983, Regulations on Administration of Registration has clear regulations on registration, registration of establishment, registration of alteration, registration of annulment, legal liability, etc..
Analysis of the Issues Involved the Non-resident Enterprise Income Tax
Non-resident enterprises shall refer to Enterprises that are set up in accordance with the law of the foreign country (region) whose actual administration institution is outside China, but they have set up institutions or establishments in China or they have income originating from China without setting up institutions or establishments in China.
Discussion on the Legal Problems of Foreign Exchange Control
Nowadays, in the sluggish global economic situation, China is an ideal place for investment. Hence, the foreign operators of hot money rack their brains to invest hot money into China, and then reap the benefits. The repatriation of hot money, on the one hand, leads to the high pressure of the rise of RMB, on the other hand, disturbs the order of Chinese financial market. In order to evade various maladies of the repatriation of hot money, Chinese state department has established series of rules and try hard to curb foreign hot money. The Foreign Exchange Control Regulations of the People’s Republic of China, which has been amended and passed by the State Council on August 1, 2008, is the typical representative.
The Conditions and Procedures for Increasing and Reducing Investment by Foreign-capital Enterprises
In accordance with Chinese law, a foreign-capital enterprise within its term of business operations, having proper reasons, shall apply for downsizing production scale and adjusting the total amount of investment and registered capital to original examining and approving authority at the premise of not affecting the normal management and not encroaching the interests of creditors. After approval by original examining and approving authority and verification by the original registration authority, the foreign-capital enterprise can handle the registration of alteration, and submit to State Administration for Industry and Commerce for record.
The Procedures and Documents for the Alteration of Investors’Equities in Foreign-funded Enterprises
The procedure for the alteration of investors’ equities in foreign-funded enterprises mainly includes two steps: 1) Be approved by examination and approval departments. 2) Submit for alteration registration with registration departments. However, in case of alteration of the equities of a Chinese investor that has invested with State-owned assets, another procedure is necessary. Relevant departments in charge of valuation of State-owned assets shall evaluate the equities to be altered before being approved by examination and approval departments. Such evaluation shall also be verified by departments in charge of management of State-owned assets.
 Description of the Issues Involving the Land Use Fees by a Foreign-capital Enterprise
With the speeding up of inviting business and attracting foreign investment throughout the country, a growing number of foreign investors invest and build factories in China. How to use lands legally has become the focus when foreign investors invest in China. Now, this paper will discuss the ways of obtaining land for enterprise and land use fees on foreign-capital enterprise in Beijing area.
 The Alteration of Investors' Equities in Foreign-funded Enterprises
Alteration of investors' equities in foreign-funded enterprises refers to alteration of investors of Sino-foreign equity joint ventures, Sino-foreign contractual joint ventures, foreign-funded enterprises set up in the territory of the People's Republic of China or their shares (equities) of investment in the enterprise (including terms of cooperation they provide).
 The Examine Flow of Foreign Investments in Construction Project
The Examine Flow of Foreign Investments in Construction Project
 Individual Income Tax of Foreign Nationals in China
With the accelerating step of economic globalization and the expansion of Multinational Corporation, foreign nationals in growing numbers come to work in China. The issue on the individual income tax of foreign nationals in China is paid more and more attention. Now, combining the Chinese tax policy, we will briefly analyze the issue on the individual income tax of foreign nationals in China.
 The Basic Flow of External Guarantees by Wholly Foreign-owned Enterprises
During the former blog, we have briefly analyzed the legal issues on wholly foreign-owned enterprises in China providing guarantees to foreign institutions. In this article, taking that wholly foreign-owned enterprise intends to mortgage or guarantee its house property to a third party for instance, we want to introduce the basic operation process of external guarantees by wholly foreign-owned enterprises.
 The Legal Issues on the Registered Capital of Foreign Investment Enterprises
The regulations on the registered capital of foreign investment enterprises in China are different with domestic companies’. This article will brief the legal issues related with the foreign investment enterprises paying registered capital from the minimum amount of the registered capital, the proportion of registered capital and total amount of investment as well as the time limit for contributing investment.
 Legal Issues on External Guarantees by Exclusively Foreign-owned Enterprises
In nowadays business practices, that exclusively foreign-owned enterprises provide guarantees to foreign institutions happens all the time. The author briefly introduces and analyses these kinds of legal issues in this paper.
 The Financing Pattern of Foreign Investment Enterprises --Pledge of Stock Rights
The former blog talked about how foreign investment enterprises finance by borrowing. In this article, we shall discuss how foreign investment enterprises finance by pledging of stock rights.
 On Reinvestment within China by Foreign Investment Enterprises
The phrase "reinvestment within China by foreign investment enterprises" means an act whereby a Sino-foreign equity joint venture, a Sino-foreign cooperative joint venture or a wholly foreign-owned enterprise legally established in China in the form of a limited liability company, invests in and establishes an enterprise in China or purchases the equity of another enterprise (hereinafter refereed as "Investee Company") in China in its own name.
 The Financing Pattern of Foreign Investment Enterprises -- Loan
At present, there is a universal downturn in global economy, whereas Chinese economy is overflowing with vigor, thus no doubt Chinese market is attracting more foreign investors. Foreign investors in growing numbers begin to seek financing in China. This essay will brief on the operational approach when foreign investors can't get a local bank loan and then turn to finance from shareholders, so as to provide a reference for the other similar cases.
 The Legal Issues on Foreign-funded Advertising Enterprises
In recent years, the development of Chinese advertisement market has become the hot spot of the world market. Like the rapid growth of Chinese economy, China advertising market has furnished life and vigor to the worldwide market while the global economy is down. Data released by China Commodity Marketplace (China CCM.com) showed that the total expenditure of China’s advertising approximated USD40, 000,000,000, ranked fourth in the world in 2009, by 2010 it is estimated that it will surpass Germany to become the third; and the total expenditure of China’s advertising will surpass Japan to become the second great advertising country, next only to America by around 2014. At the same time, Chinese government has relaxed restriction on foreign-funded advertising enterprises, and foreign investors in growing numbers begin to march into Chinese advertisement market.
    Analysis the Litigant Strategies of Foreign Well-know Trademark infringement
Case: American Company A has started to register and use a trademark on the telephones it produced since the 80s of 20th century, but the trademark is not registered in China. An Chinese Company A established in April 2009 in Beijing, has business relations with aforementioned American company A and has gotten written authorization from it to use the trademark on the telephones it produced since its establishment. Company B of Beijing established in 1993 registered the same trademark in 2007. It has not yet used the trademark on the telephones it produced, but uses other registered trademark on the telephones. When it found that company A of Beijing uses the same trademark, company B of Beijing sued company A of Beijing for its infringement.
    Protection and Identification of Well-known Trademarks in China
Trademark protection has locality differences, China's trademark administration pursue a policy of the earlier application as distinguished from America's "prior right use" policy. Trademarks have to be registered before they get legal protection in China. But for unregistered well-known trademarks, Chinese laws have special regulations to protect and the protection is not less strong than the registered trademark. When protecting a well-known trademark in China, there must be legal reasons, such as infringing upon trademarks, and the trademark is officially recognized as a well-known trademark.
    Analysis and suggestions on legal procedures for Foreign Capital M&A--3
Company AAB was registered in the United States. With the business development, AAB wants to enter the Chinese market. After exploration in China, AAB wants to merge Company BBC which was registered in Beijing. AAB has three merging plans at the moment: 1. Purchase BBC’s total Stock Equity directly. 2. Establish a foreign-invested enterprise (WFOE) and purchase BBC’s total Stock Equity through the WFOE. 3. Establish a foreign-invested enterprise (WFOE) and then use the WFOE to merge BBC.
   Analysis and suggestions on legal procedures for Foreign Capital M&A--2
Company AAB was registered in the United States. With the business development, AAB wants to enter the Chinese market. After exploration in China, AAB wants to merge Company BBC which was registered in Beijing. AAB has three merging plans at the moment: 1. Purchase BBC’s total Stock Equity directly. 2. Establish a foreign-invested enterprise (WFOE) and purchase BBC’s total Stock Equity through the WFOE. 3. Establish a foreign-invested enterprise (WFOE) and then use the WFOE to merge BBC.
    Analysis and suggestions on legal procedures for Foreign Capital M&A --1
Company AAB was registered in the United States. With the business development, AAB wants to enter the Chinese market. After exploration in China, AAB wants to merge Company BBC which was registered in Beijing. AAB has three merging plans at the moment: 1. Purchase BBC’s total Stock Equity directly. 2. Establish a foreign-invested enterprise (WFOE) and purchase BBC’s total Stock Equity through the WFOE. 3. Establish a foreign-invested enterprise (WFOE) and then use the WFOE to merge BBC.

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