Starting my Business in China

From a legal perspective, investing in the People’s Republic of China (“PRC” or “China”) implies getting familiar with Chinese specific regulatory framework. This should be done early enough in the investment process, since limitations arise at different stages, and pre-requisite approvals can take time to obtain. Despite a progressive relaxation of the legal environment, foreign investments are still subject to several limitations. Main restrictions originate from the Catalogue of Industries for Guiding Foreign Investment (which latest version was published on March 13th, 2015), which classifies investments in different categories depending on industries. In addition, foreign investors shall comply with competition rules, national security requirements and foreign exchange policies.
Legal constraints shall however be balanced. Provided they are considered early enough, they are quite manageable and most projects can be achieved with an adequate level of legal certainty. Foreign investors shall bear in mind that there is no standard schemes when investing in China. Each project is unique and requires a tailor made contractual framework.

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