47th Floor, Hong Kong New World Tower No. 300, Huaihai Zhong Road Puxi, Shanghai, 200021 People’s Republic of China Tel: (86) 21 5116 2869 Fax: (86) 21 5116 2882 Fifth Floor, St George’s Building 2 Ice House Street Central, Hong Kong Tel: (852) 2868 0696 Fax: (852) 2810 6796 (852) 2845 6671 E-mail:info@oln-law.com

OLN China Desk Know-how – Doing Business in China

China: A World Apart
Few people visit China today without experiencing a sense of awe at the magnitude and scope of the country’s current economic boom. At times, China can also seem a world apart from the conventional wisdom and rules applicable to business in most other countries. For many outsiders, the opportunity to trade with and invest in China is both exciting and daunting. While the risks of setting up in China are significant, there are substantial risks in failing to do so!

Though many well-known multi-nationals have already established their presence in China, many small businesses are now following suit.

This is where we can help.

Who We Are
We are a Hong Kong-based commercial law firm focused on meeting the practical business needs of the clients we serve. Our niche is serving overseas clients who require a combination of international skills, sound local knowledge and a results-oriented approach to the legal and business challenges that typically arise when doing business in China today. Our ability to help with strategizing and trouble-shooting at the local level can lend considerable value to our clients’ China operations.

Most trade and investment situations in China do not lend themselves to standard ‘one-size-fits-all’ solutions or to law firms organized and managed according to traditional specializations. At OLN, we take a multidisciplinary approach to all of our clients’ projects and actually listen to what our clients have to say about their goals and expectations concerning the opportunity at hand. We then use our experience and innovation to craft an effective solution which is suitable to our client’s needs, budgets and time table.

What to Expect
In China’s competitive and fast-changing business environment, an understanding of local factors, including one’s competitors and China’s patchwork of legal and regulatory requirements, is crucial for success. Nearly all foreign investment and related trading activities are more restricted and more heavily regulated in China than elsewhere.

However, thanks largely to China’s membership in the WTO, China offers a more stable, transparent and less restricted business arena than ever before. Most investors are free to choose how to structure and carry on their business dealings within China and beyond, and restrictions on repatriation of profits are generally no more restrictive than in other countries.

In addition to understanding the local business environment, newcomers also need to consider and prepare for the following issues:

• Choice of business vehicle
• Carrying on business without a local presence
• Choosing a suitable market/locality to conduct business
• Effective due diligence on local strategic partners, suppliers & key personnel
• Negotiating arrangements with Chinese strategic partners and government departments
• Protection of trademarks and other intellectual property, especially proprietary technology
• Realistic evaluation of the local market(s)
• Import duties & permits for raw materials, equipment & technology
• Distribution in China
• Approvals for sale of goods/services with China
• Appropriate documentation for transactions
• Work permits for overseas personnel and their family members
• Real estate issues
• Labour issues
• Practical arrangements for collecting receivables within China
• China tax issues
• Home country tax issues
• Annual government inspections and dealing with Chinese officials generally
• China banking & foreign exchange issues
• Enforcement of local contracts & dispute-handling contingencies
• Effective exit strategies

How We Can Help
We find that for a great many businesses seeking to enter the China market or set up operations there, it is often rather late by the time they learn the basic rules and strategies that apply in China. They may be well into negotiations or have already made substantial commitments.

We can guide you through your options, help you avoid costly mistakes and make the most of your China venture.

If the time has come to enter the China market or if your company’s existing arrangements have outgrown their usefulness, give us a call to discuss. We offer first-class legal services, delivered on time and within clients’ budgets.

For more information, please call:
Mr Richard Grams +(852) 3526 7830

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