Establishing a company in China-Full-process legal support
A foreign enterprise intending to establish a wholly-owned subsidiary in China hired our law firm to provide specialized legal services, aiming to comprehensively assess the Chinese market environment, regulatory framework, and policy support to inform strategic decision-making. The scope of services included two core deliverables: a due diligence report analyzing PRC foreign investment laws, industry-specific regulations, local incentive measures, and cross-border tax arrangements; and a feasibility study report tailored to the enterprise’s business philosophy, operational scope, and investment scale to assist them to set up a company in China.
The legal team communicated fully with the foreign enterprise to understand its business philosophy, business scope, investment scale and other information.Subsequently, the team conducted systematic research on PRC legal frameworks while evaluating market competition dynamics, consumer behavior patterns, and regional industrial policies. The due diligence report identified potential legal risks, including foreign ownership restrictions, senior management nationality requirements, environmental compliance obligations, and data security regulations, proposing mitigation strategies such as adopting a Variable Interest Entity (VIE) structure to bypass sectoral prohibitions and securing local tax incentives. At the same time, according to the market situation and the advantages of the enterprise itself, the law firm issued a feasibility study report, which analyzed and suggested the establishment plan, business model and profit forecast of the company.Leveraging these reports, the enterprise successfully navigated business registration, foreign exchange filing, tax compliance, and industry-specific licensing procedures, culminating in the lawful establishment of its wholly-owned subsidiary in China.

The operation of foreign enterprises in China-Corporate legal advisory services (including labor law of PRC, company law of PRC, etc.)
There is a wholly owned German company in China faced a labor dispute arising from non-compliance with PRC labor laws. The company, unfamiliar with statutory obligations, had failed to contribute to employees’ housing provident fund accounts. Following market downturns, the company initiated layoffs. The laid-off workers were dissatisfied with the situation, and they collectively reported to the provident fund center and demanded compensation for the layoffs.In December 2024, the German company commissioned Chinese lawyers to deal with it.
Upon acceptance of the mandate, the legal team advised a coordinated strategy to resolve both the housing provident fund arrears and severance compensation claims simultaneously. Through negotiated settlements with 20 affected employees, the lawyers secured withdrawal of administrative complaints and executed individual agreements aligning with PRC’s statutory severance standards. This approach not only resolved regulatory risks linked to non-payment of housing provident funds but also saved the company more than 1 million yuan in compensation losses, achieving full compliance while mitigating financial exposure.