China

Country and legal system

The PRC has a continental legal system with national laws, administrative acts and a significant array of by-laws. Hong Kong and Macau are separate jurisdictions and are treated separately in the navigator. Not only the law is critical for the project, but also the competence of a particular regulator, province, city and pilot free trade zone.

Foreign investment and market access

Foreign Investment Law establishes the pre-registration national regime and the Negative List system. Outside of the list of restrictions, foreign investments generally receive national treatment, but licensed industries retain special requirements. The National Negative List 2024 is valid from November 1, 2024 and contains 29 restrictive measures; Industry and regional tolerances are checked before selecting a structure.

• Negative List
• Industry licenses
• National Security
• Free Trade Zones

Business taxation

The basic corporate income tax rate is 25%. Separate incentives may apply to high-tech, small low-profit enterprises and priority industries if criteria are met. The current VAT system uses basic rates of 13%, 9% and 6%; The VAT Law of the People's Republic of China has been in effect since January 1, 2026. For a cross-border group, withholding tax, double tax treaties, transfer pricing and beneficial ownership are analyzed separately.

Taxation of individuals

Tax residence and the scope of the Chinese tax base depend, in particular, on the presence of domicile and the 183-day stay threshold. For comprehensive income, progressive rates of 3–45% apply; for business income - 5–35%, and for a number of investment and property income - a rate of 20%. International managers require a separate calculation of the calendar of stay and benefits.

Companies, representative offices and funds

The most typical operating form of a foreign investor is a foreign-invested limited liability company; Joint venture, representative office and special industry forms are also possible. For an LLC formed after July 1, 2024, subscribed capital must generally be paid in within five years. The amount of capital should be linked to the budget, licenses and banking justification, and not chosen as a formal minimum.

Bank accounts, payments and currency control

A Chinese company usually builds a separate RMB and currency circuit; capital movements and cross-border payments are within the scope of SAFE foreign exchange regulation and bank document control. We support the selection of a bank, opening of corporate and personal accounts, preparation of a KYC/AML dossier and payment architecture, including acceptable foreign banks, EMI and PSP for the international part of the business.

• Corporate RMB and FX accounts
• Capital and current account
• Cross-border payments
• Foreign EMI/PSP

Correspondent accounts for banks

A foreign bank or other eligible financial institution may establish access to cross-border RMB settlements through a Chinese correspondent bank and, if eligible, through participation in CIPS. The project requires institutional KYC, license and regulator analysis, AML/CFT system, payment traffic, technical readiness and economic justification for the relationship.

• RMB correspondent account
• CIPS indirect participation
• Clearing and liquidity
• Institutional AML / KYC

Fintech and financial regulation

Payment, credit, insurance, investment and digital products may fall within different regulatory boundaries of PBOC, NFRA, CSRC, SAFE and local authorities. The license of a foreign group is usually not automatically transferred to the PRC. Before developing a product, a map of functions is drawn up: receiving funds, storage, acquiring, credit, investment, data and cross-border settlements.

Corporate law

The new edition of Company Law applies from 1 July 2024 and strengthens the importance of real capital, directors' duties, control of contributions and corporate procedures. For a foreign group, the charter, legal representative powers, company seals, bank signature matrix and internal approvals should be designed as a single control system.

Labor Law and Foreign Employees

The employer must enter into a written employment contract and comply with local rules regarding working hours, pay, vacations, social security, and termination. For a foreign employee, before starting work, a work permit and the corresponding residence status are issued; the contract, position and actual employment must match.

Data, cybersecurity and cross-border transfers

Transfer of personal and other data outside of mainland China requires separate qualifications under PIPL, Data Security Law and CAC rules. The CAC provisions of March 22, 2024 clarified exemptions and thresholds for cross-border transfer procedures, but sensitive data and sensitive scenarios require special scrutiny.

Treaties and international trade

A foreign trade agreement links the applicable law and CISG to the actual movement of goods, money and documents. Before signing, the authority and seals of the counterparty, Incoterms, quality and acceptance, currency payment, HS code, origin, customs value, permits and export control are checked.

Intellectual Property

Protection of brand and technology begins before entering the Chinese market: international and Chinese trademarks, patents, industrial designs, copyrights, commercial secrets and tooling rights are designed as a single portfolio. Platform enforcement, customs records and evidence for administrative or judicial protection are prepared separately.

Real estate, land and construction

In mainland China, the project is built around land-use right, approved use and registration record. For purchase, lease or development, foreign clearance, title and encumbrances, land grant contract, planning, EIA, building permits, taxes, contractor qualifications, acceptance and proof of performance are checked.

Courts, commercial disputes and arbitration

The forum is selected taking into account assets, security measures and future performance. Chinese court, mainland or Hong Kong arbitration and foreign seat give different routes. The working strategy links jurisdiction, law, term, evidence, preservation, New York Convention and recognition of foreign decisions.