As China's strength in the global economy continues to
grow, businesses need to consider the prospect of establishing
operations within its borders. In order to successfully
transact business in China or with Chinese enterprises, foreign
investors, including financial investors and entrepreneurs,
should consider setting up a subsidiary in China. This article
provides general information on establishing a subsidiary by
foreign investors, to help provide guidance and demystify the
process.
Purpose Of Establishing A Subsidiary In China
Establishing a subsidiary in China should be considered by
those who have long-term business objectives in China. Although
foreign companies can enter into some commercial contracts with
a Chinese entity or individual, such as sales contracts,
license agreements, and distribution agreements, they cannot do
business directly in China without an approved business
license.
