China - Market Entry and Legal Services

Lawyer & Law Firm in China

Although China is a challenging marketplace but its large size, financially strong economy, changing demographics and significant economic transformation creates vast range of opportunities for foreign investors and entrepreneurs. In addition to being a global manufacturing hub, the middle-class in China has witnessed one of the fastest growth rates in the world. The shift towards more technology-intensive high-value added production has helped the middle-class to flourish in China that has created a large consumer base for wide range of products.  

Commercial relations between India-China

China's Foreign Direct Investment (FDI) inflows into India reached a cumulative total of $2,461 million from April 2000 to March 2023. The synergy between Chinese investors and Indian start-ups has been growing, with over 23 deals bringing in more than $5 billion from China into the Indian tech start-up sector. Imports from China into India have increased, totalling $76.62 billion in the fiscal year 2021-2022, primarily consisting of machinery, equipment, iron, steel, metals, and textiles. Similarly, India's exports to China have also risen, reaching $18.39 billion in the same fiscal year, including minerals, fuels, oil, organic chemicals, plastic, and cotton. The bilateral trade volume between China and India has experienced significant growth, increasing from $2.8 billion in 2001 to $95 billion in the fiscal year 2021-2022.

Business advantage for Indian Companies in China

China's massive population and growing middle class provide a vast consumer market for Indian companies, offering opportunities to expand customer reach. With cost-effective manufacturing capabilities and well-established supply chains, Indian companies can benefit from China's manufacturing prowess by setting up units or sourcing products at lower costs. China's developed infrastructure, including transportation networks and logistics hubs, facilitates efficient distribution. Collaboration with Chinese counterparts allows Indian firms to access advanced technology and innovation. China's improved business environment and preferential policies attract foreign investment, and partnerships provide access to expertise and networks. Leveraging China's thriving e-commerce ecosystem enables Indian companies to reach Chinese consumers directly. Opportunities also arise from China's Belt and Road Initiative, promoting connectivity and trade.

Incentives and Support programs by China for Indian Companies

China offers various incentives and support programs to attract and facilitate Indian companies interested in doing business in China. China offers preferential policies to foreign companies, including Indian firms, such as tax incentives, subsidies, and streamlined administrative procedures. Investment promotion agencies provide support and information on investment opportunities. Chinese financial institutions offer funding support through loans and investments. Technology transfer and R&D collaborations are encouraged. Incubation and acceleration programs assist foreign start-ups. Improved intellectual property protection enhances security for Indian companies. Free Trade Zones provide relaxed regulations and tax benefits.

Starting a Business in China

In order to establish a business in China, the following process must be adopted:
 

• Selecting a Company Name
• Listing all Controlling Partners
• Providing Details of Managerial Structure
• Deciding Legal Address
• Providing Articles of Association
• Apply for Approvals Certificate
• Apply for Business License
• Register with Public Security Bureau
• Open a Bank Account
• Register at the Tax Bureau  

Visa and Immigration

Visa and immigration requirements for conducting business in China can vary depending on the purpose and duration of your stay. Here is an overview of the common visa options for business-related activities:

• Business Visa (M-Visa)
• Work Visa (Z-Visa)
• Residence Permit
• Temporary Entry Permit

Entering the Chinese market offers significant opportunities, but it requires careful navigation of the local business environment. China's technological advancements, digital economy, and manufacturing sector provide avenues for growth. Online presence, social media, and influencer marketing are crucial for success. Understanding regulations and consumer preferences in sectors like agriculture and food is important. Compliance, market research, and localization are key to a successful market entry in China.

To read more about the China market and various business opportunities – CLICK HERE

How do we Help?

At India Law Offices (ILO), we strive to deliver exceptional legal services to our clients not just within India, but on a global scale. Over the past two decades, we have diligently expanded our presence by establishing strong partnerships, both formal and informal, with esteemed professionals from leading law firms in key commercial hubs worldwide. These alliances have empowered us to offer efficient and seamless representation of the utmost quality in any jurisdiction. Through our extensive network, we are able to cater to the diverse needs of our clients and ensure that they receive top-notch legal assistance across borders.

With a host of global affiliations with some of the largest law firms and legal networks, India Law Offices makes business possible worldwide for its clients. We provide comprehensive support to companies from China seeking to enter the Indian market. Our services encompass various aspects such as establishing subsidiaries or branches, navigating commercial contracts, and addressing any legal requirements. Additionally, we extend our expertise to Indian companies aiming to expand their operations in China, offering corporate assistance and legal support tailored to their specific needs. In collaboration with our Chinese counterparts, we are well-equipped to provide guidance on cross-border transactions between India and China, including mergers and acquisitions (M&A), joint ventures, and other related activities. We are committed to helping our clients navigate the complexities of Indo-China business collaborations and achieve their desired outcomes. Our expertise extends to a wide range of areas, ensuring comprehensive assistance in various aspects such as:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate

Our Partner in China

We maintain a close working relationship with Shanghai Founder Law Firm, a reputable law firm based in Shanghai, China. Since its establishment Shanghai Founder Law Firm has been providing comprehensive legal support to both companies and individuals from China, as well as international clients seeking to enter the Chinese market. Their areas of specialisation encompass legal feasibility study, commercial contract, letter of credit and guarantee, international payment, foreign trade tax, foreign trade control, debt recovery, dispute resolution, e-commerce and customs and commodity inspection. India Law Offices and Shanghai Founder Law Firm have formed a collaborative partnership to facilitate legal services between India and China. This collaboration is made possible due to their shared membership in the prestigious Warwick Legal Network, which comprises independent commercial and business law firms.

If you are company from China or individual seeking assistance in India or an Indian entrepreneur planning to enter the Chinese market, we encourage you to complete the form below and connect with our team of legal experts. We are dedicated to providing the guidance and support you require.