As the world’s 2nd biggest economy and largest exporter, China attracts countless investors to start their businesses. If you are looking to do business in China, you will find a wealth of insight and practical advice on our website to help successfully navigate the country’s unique economic systems and communication and cultural styles.

When doing business in China, it is always beneficial to understand the laws and local policies because they play important role in the hierarchical nature of Chinese business and society.

For example, the first step in analysing the legal feasibility of investment in China is to ascertain whether, and under what conditions, the contemplated activity is open to foreign investment. Those conditions may also include more favourable policy treatment for activities in which the government is eager to encourage foreign investment. Leedonsenco’s pre-investment analysis is helping our clients to identify whether the business is within the Catalogue of Industries Encouraged for Foreign Investment or the Negative List.

Another fundamental step in establishment planning is to choose the location of your company. Starting your business in a different area in China (i.e. Special Zones, Pilot Free Trade Zones, National Level High-tech Industrial Development Zones) also can be hugely different due to various local policies.

Leedonsenco, with the professional support of our legal and business counsel, offers our clients the following pre-investment services:

• Legal and Local Policy Tracking
• Due diligence of our client’s Chinese partners, and participating in negotiations as requested by our clients

• Provide opinions on the business models of the entity in China

    For example:

-  Wholly Owned Foreign Enterprise (WFOE)

-  Representative Office (RO)

-  Joint Venture (JV)

-  Foreign Partnership Enterprise (FPE)

• Analyse whether the operation and business of the entity comply with Chinese laws and check whether the main business of the enterprise involves                          the "negative list" or ‘Encouraged Catalogue’Provide opinions on the best location to run the business
• Provide opinions on the best location to run the business
• Identify the supporting financial/tax/rental policies for our client's business
• Assisting our legal counsel in conducting legal due diligence of our client’s Chinese partners, and participating in negotiations as requested by our clients