ABOUT THE NATIONAL CONTEXT FOR OPENING UP SHOP
2018 marks the 40th anniversary of China’s reform and opening up. In the past four decades, China has been marching on its course to streamline administrative procedures and requirements for opening up shop in China. What highlighted the said legislative momentum is China’s new regulation on foreign-invested enterprise promulgated in October 2016. Under the said regulation, except certain specific industries, the establishment of a foreign invested enterprise is only subject to standard filing procedures instead of local authority’s discretionary approval.
However, although entries into China are expected to be less challenging for foreign investors, multinationals may still face unexpected twists and turns in practice and turn the whole compliance process into a costly and time-consuming project. The following information will allow your organization to understand some of the most important legal requirements for opening up shop and engaging in employment in China.
Zhong Lun Law Firm, with over 240 partners and over 1,200 professionals working in 15 different cities worldwide, is one of the largest law firms in China and provides a complete spectrum of legal services. Our labor and employment law practice group is highly experienced in advising multinationals in entering China and also mobilizing employees to China at the same time. In addition to assisting our clients with continuous compliance with national and local regulations, we also advise on establishment and enforcement of company policies, employee transition in M&A and restructurings, internal compliance investigation, employee compensation & benefits, application for expatriate’s work permits and labor dispute resolution. The information we summarized below reflects common compliance requirements of opening up shop and engaging in employment in China, and may need to be further slightly customized for any specific province or city in China.