Foreign companies investing in China must navigate foreign investment review, China company registration, and ongoing corporate compliance under Chinese law. Zhang&Partners advises international investors on China investment law, WFOE and joint venture setup, company compliance in China, and day-to-day business legal services. Our China investment lawyers help you choose the right structure, complete regulatory steps, and operate in compliance with Chinese law.

Foreign Investment Review and Approval

China’s foreign investment regime is governed by the Foreign Investment Law and related rules. Depending on your industry and deal structure, you may need filing, approval, or security review. Getting this wrong can delay or block your China company setup. We advise on:

  • Market access negative list: whether your business is permitted, restricted, or prohibited for foreign investment, and any equity or approval requirements
  • MOFCOM (Ministry of Commerce) and NDRC filing or approval for foreign-invested enterprises (FIE) and for certain M&A transactions
  • National security review for sensitive sectors, acquisitions of Chinese companies, or other trigger events
  • Industry-specific rules (e.g. financial services, healthcare, education, culture) for investing in China

Our China investment lawyers help you structure transactions to meet regulatory requirements and avoid delays. We also advise on changes of scope or ownership after establishment (e.g. adding business lines or increasing foreign shareholding).

Entity Establishment: WFOE, Joint Venture, Representative Office

Choosing the right vehicle is critical for doing business in China. Each has different registration steps, permitted activities, and tax and liability implications. We assist with full China company registration and post-establishment changes.

Wholly Foreign-Owned Enterprise (WFOE)

A WFOE is a limited liability company in China wholly owned by foreign investors. We advise on WFOE formation: registered capital (or subscribed capital under the current regime), business scope, articles of association, and incorporation steps with the SAMR (State Administration for Market Regulation) and other authorities. WFOEs are common for manufacturing, trading, and services where the market access negative list allows 100% foreign ownership. We also advise on WFOE branch offices and on converting a representative office into a WFOE where permitted.

Joint Venture (JV)

Equity joint ventures (EJV) and cooperative joint ventures (CJV) involve a Chinese partner. We help with JV structuring, shareholder (or joint venture) agreements, governance, technology transfer and licensing, and exit options (transfer, liquidation). JVs are often used where local partnership is required by the negative list or is commercially preferred for market access, licences, or relationships. We advise both foreign investors and, in appropriate cases, Chinese partners on JV documentation and regulatory compliance.

Representative Office (RO)

A representative office in China can conduct liaison and marketing but generally cannot invoice or contract in China. We advise on RO registration, permitted activities, and when to upgrade to a WFOE or JV as your business grows. ROs remain useful for market research and non-revenue activities.

We support post-establishment changes such as scope amendments, capital increase or decrease, and M&A (e.g. acquisition of an existing FIE). For more on corporate and M&A work, see our Corporate & Commercial practice and contact us.

Licences, Permits, and Industry Regulation

Many activities in China require sector-specific licences or permits (e.g. ICP for certain online operations, manufacturing permits, distribution permits). We advise on:

  • Which licences your China business needs given your business scope and operations
  • Timing and sequencing of licence applications alongside company registration
  • Compliance with ongoing reporting and renewal requirements

Corporate Compliance in China

Once established, foreign-invested enterprises must comply with Chinese company law, labor law, tax, and industry regulations. Non-compliance can lead to fines, suspension, or personal liability. We assist with:

  • Corporate governance: board meetings, resolutions, and statutory filings (e.g. annual report, changes of directors or registered address)
  • Labor and employment compliance: contracts, handbooks, work permits for expatriates, and dispute prevention
  • Data protection and personal information (PIPL) compliance for data processed in China or transferred overseas
  • Anti-corruption, anti-money laundering, and internal compliance policies
  • Regulatory reporting and licence maintenance for your industry

Our China compliance support helps you avoid penalties and operate with confidence. We can also assist with internal audits and training for your China team.

Daily Business Legal Advisory

Ongoing legal advisory for business in China covers the full range of operational needs so you have a single point of contact for China legal advice:

  • Commercial contracts: procurement, sales, distribution, and service agreements with Chinese or international parties
  • IP protection: trademark and patent registration in China, licensing, and enforcement
  • Employment and HR: hiring, termination, non-compete, and labor dispute advice
  • Real estate and leasing for offices and facilities in China
  • Dispute prevention and early resolution; referral to litigation or arbitration when needed
  • Coordination with your overseas counsel on cross-border contracts or group policies

We act as China legal counsel for international companies with operations or investments in China, providing practical, business-oriented advice in English and Chinese.

M&A and Restructuring

For acquisitions of existing Chinese companies or FIEs, or for restructuring (e.g. merger, division, or asset transfer), we advise on due diligence, transaction structure, regulatory filings (including antitrust and foreign investment review where applicable), and documentation. We work alongside your financial and tax advisers as needed.

Why Choose Zhang&Partners for China Investment

We combine knowledge of China foreign investment law, company formation, and corporate compliance with experience advising international clients. Whether you are setting up a WFOE, entering a joint venture, or need ongoing legal support for your China business, we can help. Contact us for China investment legal advice, China company registration, or China compliance support.

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