One of the first decisions that foreign investors will have to make when entering the China market is how the investment should be structured. In a highly regulatory business environment such as China, a corporate structure has profound implications over ownership control, profit repatriation, tax effectiveness and capitalisation of investments etc. It is utmost important that foreign investors consult with in-market professionals to help understand the various forms of investment vehicles available and the type of structure that is right for their commercial activities / investment.

There are a number of structures available to international investors in China. Namely wholly foreign owned entities (WFOEs), equity joint ventures (EJVs), contractual joint ventures (CJVs), representative offices, and foreign invested joint stock companies.

International investors should take into consideration:

• size and nature of the business
• level of control/ownership
• complexity of structure (or need for transparency)
• tax implications of different structures
• expected profit (or loss) of the business
• need for re-investing earnings into the business
• access to cash out of the business

We advise international investors on corporate structuring in China for new business ventures, corporate expansion or reorganisation of existing operations. Our team of professional advisors have extensive experience in designing effective cross-jurisdictional corporate structures involving multi-level structures and controls to achieve the desired objectives for clients in the China market from an international perspective.

We have the depth and breadth to offer clients both China and global corporate structuring solutions. We are supported extensively by our international offices and affiliates. We draw on a team of multi-disciplined professionals, and encompass not only corporate aspects across different jurisdictions, but also many other areas that play a role in a structuring or restructuring assignment e.g. international taxation issues etc.

Our clients include small-medium entities to multinational and publicly listed corporations seeking structuring advice, often involving mergers and acquisitions, divestitures, management and or operational restructuring. FIEs in China might also need corporate restructuring due to the rapid changes in the regulatory environment. This might include a buy-out of the Chinese partner and or winding-up of a JV so as to establish a WFOE in an industry that might have been previously restricted from 100 percent foreign control.

Supported by our team of professional advisors with multi-cultural and multi-disciplined backgrounds, China experienced and international accredited qualifications, we have strategically positioned ourselves to readily assist the concerns of clients operating in and out of the China market.

Please contact us for assistance or further information on our corporate structuring and restructuring services.