23.11.20 Corporate Services
1 min to read

Setting up a new business in China

This Handbook aims to provide foreign investors with an overall picture of processes and key considerations for incorporating FIEs in China, under the newly enacted Foreign Investment Law.

A. Which sector to invest?

  • What is the “Encouraged Catalogue” and “Negative List”?
  • What is included in the Negative List?
  • What is encouraged by the Encouraged Catalogue?

B. Reserving the company name

  • What is the purpose of reserving the company name?
  • Is it mandatory to reserve a company name in Chinese?
  • How to form a Chinese company name?
  • What is the procedure for reserving the company name?
  • Is it possible to have a company name in English or other languages?

C. Defining the business scope

  • What is the business scope?
  • How to draft the business scope for a company?
  • What will happen if an FIE carries out activities exceed its business scope?
  • What is the procedure to change the business scope?

D. Procedure for establishment of FIE

  • The incorporation procedure for foreign investment
  • Incorporation documents
  • Issuance of the business license
  • Post-incorporation approval (e.g. Environmental)

E. Financing the structure

  • Equity financing
  • Debt financing
  • Financing for Reinvestment
  • Foreign exchange control

To know more, download our legal handbook related to Foreign Investment Law in China.: