Register Your Company in China NOW

The Chinese government is increasing its efforts to crack down on unregistered foreign companies doing business in China, according to a post by China Law Blog entitled,  "URGENT ALERT: Register Your Company in China NOW".  This has never had more truth to it than it does now as the government in China is attempting to alleviate Chinese resentment toward foreign businesses. Many foreigners operating businesses in China are under the assumption that their local connections will help avoid any legal problems, but this is just not true. China Law Blog summarized it well when it said:

In many emerging market countries, local businesses take advantage of corruption to avoid complying with laws. This may work for the locals, but it won't work for you. The easiest way for a local rival to drive you out is for you to do something illegal. Neither you nor your government will have good grounds to complain if your rival gets your business closed down due to your illegal activity. It might even be your own partner who reports you so he can assume full ownership and control of your business.

China Law Blog points out that the locals will tell the foreign business owner not to comply with the laws because this gives them leverage. "If your local people in China are telling you this is not how Chinese business is conducted, you need to remind them you are not Chinese and the government will treat you differently."

For more information we recommend reading:

1. URGENT ALERT: Register Your Company in China NOW
2. Chinese Law: Smoke and Mirrors
3. That's China and It Still Ain't Pretty

Comments

[China Law Blog]

When I did this post I thought of Kitto and looked for something to refer to on him and then gave up. Your (back in the Asia Law days) post is exactly what I needed and I am going to add it as an update. Thanks.