Holding Jurisdictions For Chinese Investments
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Welcome to ChinaInvest.biz Magazine - February 2011 Issue

ChinaInvest.biz Media is a division of Klako Group and will be providing monthly insight into investment, tax and operational issues for foreign companies entering and operating in China.

We wish all our readers a Happy and Prosperous Year of the Rabbit. We would like to take this opportunity to wish you all a successful 2011 with your businesses.

In our February issue we are highlighting to our readers what types of investment vehicles can be used by Foreign investors when entering the China market. It may also be of interest to existing foreign companies that are based in China in terms of restructuring their shareholding structure to benefit from tax optimization structures and risk factors. Should you have any questions regarding our newsletter, please do not hesitate to contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . We are always looking forward to hearing from our readers.

Labor Law is a relatively new phenomenon in China, with the first comprehensive law passed
in 1994. The new law, adopted by the National People’s Congress (NPC) on 29th June 2007,
looked to redress some of the poor working conditions found in China, particularly for the
average worker. Prior to the passage of this law, most Chinese employee’s in small-medium sized
firms lacked employment contracts. Morever, they were short-term, giving employers the flexibility to
frequently bring in a new, often cheaper hires whenever they saw fit.


Holding Company Jurisdictions for Chinese Investments

Many foreign companies are feeling the pressure to establish an entity in China. Often the establishment requires a high capital investment and more importantly a risk factor. Due to these aspects, more and more investors are establishing offshore companies to act as a holding entity for their China investment and thereby creating a buffer layer to take ove the full liability for the Chinese operation. The establishment of many of these offshore companies is an easy process and due to an uncomplicated tax system and accounting requirements, simple to operate.  Double taxation agreements have been drafted and implemented between China and many of these offshore jurisdictions, which adds an additional benefit.


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If you require assistance with the above subject, please contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

All information in this report is verified to the best of our ability and is assumed to be correct at time of release; however, Klako Group does not accept responsibility for any losses arising from reliance on the information provided within.


Free Consultation with China and Hong Kong Legal & Tax Advisors


The directors of Klako Group will be travelling throughout the year to met with partners and clients and to participate in trade and tax-related events. Should readers or clients fo the firm wish to meet our directors face to face during their trips to discuss matters concerning Hong Kong and China business investments, please contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Appointments will be made on a first come, first serve basis. The visits of our directors provides an excellent opportunity to all our readers to discuss first hand their own investment potential, opportunities and legal/tax updated for Hong Kong and China in detail.

 

Below is the tentative scheduling for 2011.

 

May 16th-17th 2011: Germany

June 1st -17th 2011: Canada, USA, Mexico

July 25th-29th 2011: Netherlands, England, France

September 26th-30th 2011: Germany

October 12th-31st 2011: India, France, Turkey


To read full interview, please click here to view magazine (PDF file)