Many foreign purchasers only sign a proforma invoice with a Chinese Supplier, when they want to start a litigation or arbitration in China, they find that the proforma invoice is not considered as a contract, only a evidence for litigation in China

The General Office of the State Council released Administrative Measures for Partnership Enterprises Established by Foreign Enterprises or Individuals in the Territory of China (Measures) on December 2, 2009 and will take effect as of March 1, 2010.

There are two main methods which a foreign investor can conduct in hiring local staff.

VAT applies to all individuals and enterprises engaged in supplying goods or rendering services or in importing goods (not services). Provision of services that are not covered by VAT may be subject to Business Tax (see below).

Chinese government welcomes those foreign investors, high-level administrators and technical staff to work in china. And the normal vacancies are not offered to foreigners. So the foreigners who intend to work here shall have more than 2 years relevant work experience and relevant educational background.

The following is the procedure that is necessary for setting up a foreign Chinese joint venture company in Shanghai.

The following is the procedure that is necessary for setting up of a wholly foreign owned trading company in Shanghai.

Each province, directly administered city, and autonomous region has a higher people’s court. Higher court hears certain first instance and appellate cases involving civil, administrative and criminal matters and has jurisdiction over certain other matters.

The author gives main steps for setting up an office in Shanghai.