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ARTICLE · 26 JUNE 2024

Establish a Chinese subsidiary: Deciding on the right location

Factors to consider are location of employees, convenience of location, fiscal subsidies, and ease of doing business.

ChinaCorporate/Commercial Law

While concerns remain over geopolitics and economics, we are once again supporting an increasing number of Western companies to establish manufacturing, trading or service subsidiaries in China. One of the key questions for foreign investors that we need to respond to is: where to best locate such a subsidiary?

Every company established in China, whether foreign-invested or not, must have a legal address which is formally registered with the local government departments. This address determines which district authorities have supervisory authority and where taxes are paid.

For companies that have a commercial reason to be at a certain location, this choice is often easily made. But companies that engage in services or trade, including retailers that plan to open stores in multiple locations, have a lot of options to choose from. Moreover, some companies may not be looking for a fixed address at all – for example because they plan to hire staff only later, or they

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