Institute for China Studies

eBook: Accelerating Business Expansion In China Via Branch Offices

Tags: Publications, eBook, China, Foreign Investment, Branch Office

  • Author: Dr. R.A. van Ostende
  • Title: Accelerating Business Expansion in China via Branch Offices
  • Language: English
  • Format: PDF
  • Version: 2021
  • Pages: 49
  • Price: EUR 29,95

Under China’s Foreign Investment Law and Company Law, organizations have multiple options to expand their business operations within China. When the expansion requires a formal presence in a new location, organizations have the possibility to enter these local markets via either the establishment of a new legal entity or via the establishment of a branch office.

Companies consider branch offices as are a popular investment vehicle for fast expansion of their business operations throughout China. A formal representation will be established, in combination with comparable low incorporation requirements easy maintenance.

In this publication the main characteristics of the types of branch offices are introduced, followed by an explanatory of the establishment process including indicative timeline and documentation requirements.

Conditions and considerations related to the formulation of the business scope of both the China-based parent company and the branch offices are discussed, as well as considerations regarding subscribed capital requirements of the parent company. Further attention goes out to the considerations of localization of the branch office.

Regarding operational management of the organization, focus goes out to the roles and responsibilities representatives at both the parent company and the branch office fulfil, management of the company seals and the accounting and tax setup of the different types of branch offices.

From a commercial perspective the roles the types of branch offices are allowed to fulfil in the process of conclusion of commercial contracts is discussed.

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