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Q: Can foreigners own a purely private company in China?
Hi All,
I have just begun a new enterprise with a foreign business partner here in Shenzhen and would like to know what the laws are concerning foreign-owned private companies in China. I know that many foreign enterprises have come abroad and directly invested subsidiaries in China, but I am currently building an enterprise from the bottom-up inside China.
My questions are:
1) What are the laws concerning foreign-owned enterprises in China and how much freedom do private entities have in China without having any connections or ties to the government.
2) Are there any upper limits as to how much revenue private enterprises can generate and still be fully, privately, and foreign owned.
3) Does the government support and promote private enterprises as much as they say they do or is it just in name?
Thanks again!
Best,
Phoenix11
10 years 19 weeks ago in Business & Jobs - China
Did you not research the laws before you set up the company?
Strange question. If I wanted to set up a company in South Africa, for example, I would not be asking questions on SAcities.com after the fact.
Should we expect an answer from a qualified Shenzhen based corporate lawyer soon?
You'd better seek such information from a reliable consultancy agency. There are several thrust worthy in China.
First to understand how it works, second to take care of the registration processes, which despite being quite straightforward, require to follow the steps in the proper order and time to go through a bit of bureaucracy,
first it depends what kind of business you want to set up.
if it is food or export/import you have to invest at least 500k RMB to get a business license
btw if you have no connection to governments and offices then you should hire some chinese that have otherwise they will fuck you up permanently
You best educate yourself right quick mate. You are walking through a bloody minefield if you have not a clue of what you are doing, and I promise you regrets are costly in China.
Seriously, how have you not already figured these answers out?
