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China’s New VAT Law: A major shift towards a clearer and more predictable tax system

On January 1, 2026, China will implement its new Value-Added Tax (VAT) Law, replacing the existing “Interim VAT Regulations on Value-Added Tax.” This marks a significant transition from administrative regulations to national legislation, bringing about more consistency, legal authority, and predictability in the country’s tax system.

China: Reform of Arbitration Law – Need for Action for German Companies?

On March 1, 2026, the comprehensive reform of Chinese arbitration law will come into force. Many of the new provisions codify practices that were already established (e.g., inclusion of international arbitrators, online proceedings). For German companies, this does not create an immediate need for change, as existing arbitration clauses remain valid. The reforms, however, bring […]

AI in the Supervisory Board – Opportunities, Duties and Risks from a Corporate Law Perspective

The use of Artificial Intelligence (AI) is becoming increasingly important in companies. In the realm of corporate governance, particularly at the supervisory board level, new possibilities are emerging: AI can support decision-making processes, identify risks, or monitor ESG criteria.

AI in Employment Law – Opportunities, Risks, and Legal Challenges

Artificial Intelligence (AI) is increasingly finding its way into various areas of working life, from automated recruitment processes and performance tracking to digital time recording. For employers, AI offers tremendous potential to increase efficiency.

AI in International Corporations – Opportunities, Risks, and Compliance Challenges between the EU and China

The introduction of Artificial Intelligence (AI) in international corporations promises efficiency gains, scalability, and innovation advantages. At the same time, companies face a fragmented regulatory landscape, particularly between the EU and China. Fundamentally different legal cultures, data protection concepts, and risk assessments collide.

The main annual obligations for companies in Germany

German companies must fulfil a variety of obligations under the German Commercial Code (Handelsgesetzbuch – HGB) and the Limited Liability Companies Act (GmbH-Gesetz). The Ecovis consultants explain these in detail.

Risk-free Litigation – Achieve justice with a success-based fee

Those who decide to assert their legal rights in court often face a major obstacle: financial risk. Court fees, attorney fees, and the potential cost of losing a case discourage many from even consulting a lawyer. But what if this risk could be significantly reduced? The answer lies in the success-based fee. This modern compensation […]

No Trace Left: China Cleans Up Business Credit Records

The State Administration for Market Regulation recently issued a notice regarding the implementation of the Measures for the Administration of the List of Enterprises with Abnormal Operations. According to the notice, once a business entity is removed from the abnormal operations list, the related information will no longer be publicly displayed—achieving a “no trace” policy […]

China’s New Facial Recognition Regulations: What Every Business Leader Needs to Know

Starting June 1, 2025, China enforced a far-reaching regulatory framework governing the use of facial recognition technology. Jointly issued by the Cyberspace Administration of China and the Ministry of Public Security, these new rules, officially titled the Security Management Measures for the Application of Facial Recognition Technology, are among the most stringent of their kind […]

How to Appoint a Process Agent in Germany – Step-by-Step Guide for International Businesses

When dealing with international finance, commercial real estate, or cross-border transactions governed by German law, one often-overlooked but crucial step is appointing a Process Agent in Germany. This ensures legal certainty, avoids delays in legal proceedings, and protects your interests if you lack a physical presence in Germany.

FAQ: GmbH or UG Liquidation in Germany

Deciding to close a GmbH or UG is an important step that involves more than just stopping business activity. It requires thoughtful planning across legal, financial, and administrative areas. Common reasons for closure include a shift in business goals, declining profitability, limited market potential, or personal circumstances such as health or retirement. In some cases, […]

Dissolving a GmbH in Germany: Important Tips for Managing Directors

The dissolution of a GmbH is for many entrepreneurs the final major step in their business career – whether due to age, changing market conditions, or a professional realignment. The path to remove the GmbH from the commercial register is clearly regulated by law, but not without pitfalls. A GmbH liquidation requires legal expertise and […]

WFOE Setup: 10 Common Mistakes

Setting up a WFOE (Wholly Foreign-Owned Enterprise) in China requires a thorough and well-thought-out approach in order to avoid complications down the road. A single oversight during the planning phase can impact multiple subsequent steps, potentially derailing an otherwise well-prepared process. In this article, we present 10 common mistakes to avoid: 1. Insufficient Registered Capital […]

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How to Set Up a WFOE in China: The 6 Key Steps to Start a Foreign-Owned Company

Setting up a company in China can be a challenging yet rewarding process. For foreign investors, the Wholly Foreign-Owned Enterprise (WFOE) remains one of the most popular and flexible business structures. It allows 100% foreign ownership and full operational control — without the need for a Chinese partner. In this article, we’ll guide you through […]

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Understanding China’s Tax Reporting Requirements for Overseas Payments

Transferring funds out of China is far from a simple push of a button. Whether you’re a multinational corporation engaged in cross-border transactions or a domestic enterprise paying for services abroad, China’s strict tax regulations and foreign exchange controls can significantly impact your payments. With regulators closely monitoring cross-border fund flows, understanding the required tax […]

Who’s in Charge? China’s New Beneficial Ownership Filing Rules Explained

As of November 1, 2024, China has officially introduced the Beneficial Owner Information (BOI) filing requirements for all business entities operating within the country. This regulation mandates that all existing entities, including companies, partnerships, and branches of foreign firms (collectively referred to as “Reporting Entities”), submit their beneficial ownership details by November 1, 2025.

Becoming a Minority Shareholder in a Chinese Company – Opportunity or Risk?

Imagine you and your friends jointly purchase a car, but you only contribute 10% of the purchase price. Meaning, you own a part of the car and are entitled to 10% of the rental income. However, unless there is a clear agreement protecting your rights, you have little say in major decisions, such as repairs […]

Two-in-One: China Integrates Work Permits and Social Security Cards

Starting December 1, 2024, China will officially merge work permits for foreigners with social security cards into an integrated digital solution. This new system aims to simplify access to essential services for foreign workers while optimizing administrative processes. The reform reflects China’s commitment to modernizing its talent management and creating a more seamless experience for […]

The “Director Contract” in a GmbH

A director is appointed. But what does that actually mean? If the company is a German GmbH, this generally refers to the position of the Geschäftsführer (managing director). If this is the case, a management contract is required. This in turn is subject to the provisions of the service contract. Our article provides a comprehensive […]

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Process-Agent for Companies: A Must-Have for International Contracts

The world is becoming more connected. As such, international transactions appear more common too. Not only big companies, but also individuals are engaging with international partners. Therefore, every legal ambiguity about the contract is becoming more important than ever. In such cases a fast and reliable communication is indispensable. This is where the process-agent comes […]

Essential Liability Updates: China’s 2024 Company Law for Foreign Investors

On December 29, 2023, the National People’s Congress of the People’s Republic of China adopted a new, revised version of the previous Chinese Company Law. It is expected to come into effect on July 1, 2024. It will result in many important changes that foreign investors operating in China should be aware of. The following […]

Opportunity in times of crisis? China’s new economic landscape

China, renowned for the last decades for its economic ability, currently confronts a multitude of challenges within a context of slow economic growth. The ongoing structural transformation of China’s economy, imperative for its long-term sustainability, has engendered short-term turbulence. The nation’s shift from an export-driven paradigm to one centered on domestic consumption and innovation has […]

Navigating China’s Cashless Revolution: A Guide to New Payment Options

In recent years, China has undergone a remarkable transformation in its payment landscape, evolving into an almost cashless society driven by mobile payments. For residents, this transition has undoubtedly enhanced convenience in everyday transactions. However, for foreign visitors, navigating this digital payment ecosystem has presented its own set of challenges. Alipay, a leading mobile payment […]

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Guarding Data: German GDPR Tactics for Safe Passage to China

In an increasingly interconnected digital landscape, the need for robust data protection strategies has become paramount. For German businesses eyeing expansion into China or engaging in cross-border data transfers, navigating the intricate web of regulations, particularly under the GDPR (General Data Protection Regulation), poses both challenges and opportunities. Let’s delve into the key considerations and […]