Top Five Chinese Business Law Everyone Should Know – IPO Pang

Do You Want To Start Up A Company Or Open Up An Office For Your Brand In China?

But Is The Chinese Economy Favorable To Do Business Or Expand Operations For A Global MNC Or A Foreign Company?

Well, That Is Something That You Can Debate About But Here Are The 5 Most Important Business Laws That Every Entrepreneur Or Business Owner Has To Know About Before Expanding Their Operations In China.

Let’s Study Than In Detail-

The Decision Making Authority Rests With The Legal Representative Of A Company

This Type Of Rule Is Especially Important For You To Know In Case You Are Willing To Start A Joint Venture With A Chinese Firm. If Your Company Has A Legal Representative Board Or Panel Then The Entire Decision-Making Authority Or Power Rests With That Legal Authority.

You Will Not Have Any Say Even If You Are The Major Shareholder In The Joint Venture Firm. Well, This Might Sound A Bit Harsh For The Business Owners Who Are Planning To Shake Hands With Chinese Firms Through Jvs.

No Such Thing Called Independent Contractors In China

You Cannot Develop A Contract With Your Business Partners And Go For Manufacturing Any Product Or Service In China. It Could Be That The Chinese Government Might Oppose You And At The Worst, You Can Even Be Thrown Out Of The Country For Not Adhering To The Business Laws In China.

Stringent Policies For Foreign Companies To Be Listed On The Chinese Stock Exchanges And Taking Out IPOs

Whether You Think Of Getting Listed In The Chinese Stock Exchanges Or You Want To Release An IPO, Being A Foreign Company Means That You Have The Tide Against You. Yes, There Are Lots Of Norms, Standards, And Procedures That Have To Be Met Flawlessly Over Several Years For You To Become Eligible For Listing Or Release An IPO.

One Such Law States That The Majority Shareholders Of A Firm Need To Be With The Company For At Least Three Years Before You Come Out With Your IPO. You Cannot Buy A Majority Stake In Any Chinese Company Today And Launch An IPO The Next.

US Courts Have All Their Verdicts Void In China

For All The US-Based Businessmen This Can Come As A Hammer To The Head Because The Chinese Business Laws Clearly State That US Courts Don’t Have Any Of Their Verdicts Recognized Within The Chinese Borders.

You Cannot Terminate Employees Just Like That

Hire And Fire At Will Is Something You Cannot Do In A Company Or An Organization In China. You Need To Furnish Well-Defined Reasons Proving That The Suspected Employee Had Caused Significant Damage To The Brand And Trust Of Your Organization Or If The Employee Is Under Criminal Investigation.

Finally, If You Want To Know About More Such Laws That Prevail For Foreign Companies Operating In China You Can Visit Ipopang Today. It Is The Best Place To Get Expert Advice On All Types Of Business And Corporate Laws.

For More Information about China Corporate Law Please Visit Our Website: https://ipopang.com/

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