China Know-How

WFOE Setup: 10 Common Mistakes - Ecovis Heidelberg
China Know-How

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 […]
Understanding China’s Tax Reporting Requirements for Overseas Payments - Ecovis Heidelberg
China Know-How

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 […]
Unlocking Opportunities – Establishing a Chinese WFOE Step-by-Step - Ecovis Heidelberg
China Know-How

Unlocking Opportunities – Establishing a Chinese WFOE Step-by-Step

In the bustling landscape of China’s market economy, one legal entity stands out as a beacon for foreign investors seeking autonomy and profitability: the Wholly Foreign-Owned Enterprise (WFOE). A WFOE, as its name suggests, allows foreign investors, whether corporations or individuals, to establish a fully owned subsidiary within China’s borders. Unlike the restricted scope of […]
Chinas NEW Company Law! What you need to know! - Ecovis Heidelberg
China Know-How

Chinas NEW Company Law! What you need to know!

266 articles, this will be the lengths of the new Chinese company law. The current version with 218 articles in total will get a full make-over with over 70 articles being added or substantially revised. As this is the first ever major revision of the Company Law, there will be considerably large changes to China’s […]
Employer Gift-Giving in Germany and China Explained - Ecovis Heidelberg
China Know-How

Employer Gift-Giving in Germany and China Explained

Christmas season is around the corner, and many companies are gearing up to prepare Christmas presents for their employees. Before diving into the festive spirit, it’s crucial for a company to pay attention to certain aspects in advance to avoid potential tax issues. This text will delve into the tax benefits associated with Christmas gifts […]
Cross-border data transfer made easy now: The CAC Standard Contract - Ecovis Heidelberg
China Know-How

Cross-border data transfer made easy now: The CAC Standard Contract

Previously, the transfer of cross-border personal data was challenging, whether it was conducting a CAC security assessment or certifying personal data. Both processes involved high costs, significant administrative burden, and long waiting times. However, since June 1st, 2023, the transfer has been greatly simplified. The newly introduced CAC Standard Contract, together with the corresponding Standard […]
The Rise of SMEs in China - Ecovis Heidelberg
China Know-How

The Rise of SMEs in China

Small and medium enterprises (SMEs) are the driving force of China’s economic growth. Since the economic opening of China in the 1980s and the possibility for private enterprises to enter the market, they have continued to thrive, currently making up about 97% of all enterprises in China.   The Chinese market is also becoming increasingly […]
How to sue a company in China - Ecovis Heidelberg
China Know-How

How to sue a company in China

Due to the corona pandemic the demand for Chinese products especially in the medical sector has increased rapidly. That is why a growing number of companies do business with Chinese suppliers or firms. Unfortunately, the Cooperation with firms in China does not always work smoothly, but sometimes turns out to be very asymmetric: Maybe you […]
China’s New Foreign Investment Law - Ecovis Heidelberg
China Know-How

China’s New Foreign Investment Law

Draft implementation rules published – The Chinese Ministry of Justice (MOJ) released draft implementation regulations for the Foreign Investment Law on Nov 1st, 2019. The law itself was passed in March 2019 and will take effect on January 1st, 2020.
Getting your firm ready for 2020 - Ecovis Heidelberg
China Know-How

Getting your firm ready for 2020

What changes in China will affect your business in the new year?
The end of the year is a time to review the past year and plan ahead for the next 12 months. This is not about our typical well-intended good resolutions like eating healthier or finally giving up smoking in the new year
Roadshow January 2020 - Ecovis Heidelberg
China Know-How

Roadshow January 2020

Opportunities and Risks of the Chinese Social Credit System Recommended actions for German companies. January 16, 2020 in Cologne, January, 23 2020 in Stuttgart, January 30, 2020 in Munich
Profit repatriation – How to return assets to your home country? - Ecovis Heidelberg
China Know-How

Profit repatriation – How to return assets to your home country?

Returning assets abroad can be a complicated, time-consuming process, especially in the current economic climate of China in which capital control is getting stricter. It has always been an essential but challenging task for foreign investors to repatriate money. Foreign businesses located in China as representative offices or satellite operations encounter these difficulties every day. […]
Determining Your Individual Income Tax: What to keep in mind - Ecovis Heidelberg
China Know-How

Determining Your Individual Income Tax: What to keep in mind

In January 2019, the new Chinese Individual Income Tax Law took effect. Now, over 6 months into the year, a drop in tax revenue been reported. This is seen at least partially as result of the new law, specifically of the increase of the taxable threshold, and introduction of the deduction items into the taxable […]
Corporate Social Credit System - Ecovis Heidelberg
China Know-How

Corporate Social Credit System

While in recent times China’s trade conflict with the USA has been the main focus of attention, the ruling Communist Party’s domestic political plans have mostly receded into the background. But comprehensive change is also emerging within China. In 2014, the Chinese government published a plan to establish a comprehensive digital social credit system (SCS) […]
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