YINGKE PKW

Foreign Direct Investment

For over the decade, Yingke Law Firm has represented numerous foreign and multinational firms that have established business operations in China. This area of our practice covers an entire range of services from strategic planning to establish a business presence in China, including providing advice on day-to-day operations. For a multinational or foreign company planning to operate in China, it is important to select the most appropriate form of business, such as wholly-owned subsidiary, joint venture, branch or liaison office. In this regard, we provide our clients advice in making such a selection, prepare all necessary documentation for any government approvals, and ensure that such approvals are obtained in a timely manner.

Once a business entity is established in China, we also provide a full range of post-establishment and related services, including advice on additional capitalization, debenture issuances, public offerings, office or factory site location and leasing, and commercial agreements relating to outsourcing, licensing arrangements, manufacturing, distribution, and franchising.

Foreign companies of all sizes and sectors have relied upon joint ventures to penetrate the Chinese market while gaining immediate local expertise at the same time. In this regard, we have extensive experience in advising on joint ventures and strategic alliances, and have advised on the vast majority of the major cross-border joint ventures in China. In addition, we have handled many more smaller-scale joint ventures, advising foreign investors and/or domestic companies. Given our extensive experience in establishing and providing on-going services to joint ventures, we are able to provide special insight on problems and issues that arise frequently and that the foreign investor or the domestic company should take into account, including corporate governance, minority rights, and dispute resolution, among others.

  • Regulation of foreign investments (authorization, declaration, etc.)
  • Structuring of investment plans
  • Creation of legal structures (joint venture, 100% subsidiary, branch, agency), joint venture agreements, bylaws, feasibility studies, contracts and related documents
  • Acquisitions of companies and investments: feasibility studies regarding the projects, the quality of the partners, due diligence, memoranda of understanding, acquisition contracts, guarantees regarding assets and liabilities, contracts and related documents
  • Acquisition of on-going businesses
  • Restructurings: capital increase/decrease, change of company form, merger, partial asset contribution, liquidation
  • Assistance during negotiations
  • Monitoring of approval process and registration formalities
  • Legal monitoring of local structures