19.07.23 Commercial Law

Contractual Options to do Business in China

China offline distribution

Contractual arrangements appoint Chinese partners as distributors, or trading or sourcing agents. It is an appropriate option for foreign investors who do not want to set up permanently in China, but who are still looking to manufacture, sell and distribute their products in China, while monitoring the operations from abroad. Moreover, those arrangements do not require approved/license except otherwise required by competent authorities.

1. Distribution Arrangements

  • Exclusive distribution
  • Essential contract stipulations
  • Intellectual property

2. Manufacturing Arrangements

  • Intellectual property
  • Product quality control
  • Other issues

3. Variable Interest Entities (VIE)

  • Characteristics
  • Main risks and how to limit them?

4. Franchise

  • Characteristics
  • Disclosing obligation
  • How to set a Deposit/Guarantee?
  • Securing a franchising agreement and protecting your business
  • Competition Issues

To know more, download our legal handbook related to Contractual Options.: