China Business Ventures
China is the most populous country in the world. Its economy is the fastest growing and ranks second only to the United States. After nearly forty years since the opening up of China, foreign companies continue to arrive in China to take advantage of China’s expanding markets for their products or investments.
China Business Distress Management
Foreign entities often find their China-based business falls into distress. Eroding sales, tight cash flows, mounting inventories and returns, erratic and urgent changes in priority—these are all symptoms of a company in distress that demand prompt and decisive action. Fortunately, IPO Pang’s distress management group—comprised of legal, accounting, and business professionals—is dedicated to helping foreign companies analyze and rectify.
Cross Border Joint Ventures
IPO Pang assists foreign companies engaged with Chinese business partners with all aspects of documentation related to potential joint ventures, from negotiations to recording final government approvals. We draft all agreements in English and Chinese, including the main joint venture agreement, articles of incorporation for the joint venture company, service agreements, technical support agreements, intellectual property, and more.
Licenses, Permits and Government Lobbying
Whenever a foreign enterprise decides to enter China, one of the first issues to arise is how to obtain licenses and permits to enable a foreign party to do business in China. These permits range from setting up a representative office to establishing a factory or a retail store. At IPO Pang, we have many years of experience in obtaining the critical licenses and permits to start a business in China.
Corporate and Business Law
When establishing a presence in China, or even if dealing with a Chinese enterprise with China state-owned interests, an understanding of the corporate law and “rules” that govern business and commercial transactions in China is essential. We advise clients on the various corporate structures, the business and commercial transactions, including distribution, in China.
Foreign Direct Investments
Foreign businesses interested in entering the Chinese market will be faced with a plethora of regulatory and legal requirements, including ensuring the intellectual property of the foreign party is well protected and registered. At IPO Pang, we advise clients through three phases when considering entry into China: pre-entry and the registration of rights prior to entering.
Franchising in China is big business. With over 1,000 international and domestic franchises operating in some form and shape in China, the Chinese appetite for successful business modes and models is insatiable. Franchise law, franchise disclosure, and franchise compliance are developing areas of law that are often mired in contradictions and incomprehension.
Mergers & Acquisitions
Often entry into China is accomplished through an acquisition or merger with a local company. Laws governing the acquisition of a Chinese registered company are complex and often require the insertion of an intermediary subsidiary to maximize flexibility and tax benefits.
Unfair Competition Law
When a traditional trademark, copyright or patent enforcement remedy does not redress an IP owner’s concerns adequately, an unfair competition action is worthy of consideration. Chinese competition law is often misquoted and misunderstood. IPO Pang has extensive experience in this area and will help protect businesses from unfair competition.
Intellectual Property Law and Counterfeit Enforcement
IP protection is the number one priority when doing business in China. China believes in the rule of law, but this falls apart quickly when faced with the massive implementation infrastructure needed to complete this promise. At IPO Pang, we assist clients with registration of IP rights, oppositions, cancellation, appeals, appearance before TRAB, administrative litigation, and more.
Litigation and Arbitration
Whether you are bringing a lawsuit or being sued, IPO Pang practices all aspects of commercial law litigation. We are never afraid to go to court and are always well prepared with our evidentiary offerings. We conduct thorough due diligence on the opposing party before we embark on bringing or defending a lawsuit, and, where appropriate, we also will take the matter to arbitration.
Local Regulatory Compliance and Audits
IPO Pang has advised multi-national companies that need to comply with local regulatory requirements. These range from environmental to labor, from hours of operation to handling of hazardous materials. Local authorities are on the move to generate “revenue” from citations and more often than not, multi-nationals are targeted.
Advertising and Marketing
Companies that sell their products and services in China must comply with truth in advertising laws. Companies that fail to comply with the law will be subject to both civil liability to the “unsuspecting consumer” of up to 10 times the value of the false claim in addition to a civil fine of up to $500,000. IPO Pang will assist our clients to be in compliance.
Environmental Law and Permitting
China now realizes that pollution is and has been its greatest shortfall, with years of neglect while serving as the “factory of the world.” Now, China is on a campaign to reduce environmental pollution. While clean-up is a separate issue, permitting factories that generate pollution discharges will need to understand the new environmental rules and regulations.
Outbound Foreign Investment
With the rise of the middle class, and the exponential explosion of Chinese wealth, investment outside of China is serious business and an investment option with which the Chinese approach with vigor and passion. IPO Pang works with high-net-worth individuals, mid- to small-sized companies and private equity firms with ambitions to achieve a diverse portfolio.
Labor Law and Employment
China labor and employment laws have become increasingly complex and pro-employee. This has driven up the cost of doing business. Yet, these labor and employment reforms have allowed for the development of a new generation of sophisticated employees that are more innovative, capable, hardworking, able to handle high end tasks, and politically sensitive and astute.
Leasing or purchasing facilities or sites for manufacturing, warehousing or office purposes is an essential first step to procuring a license to operate in China. In fact, having a lease fully executed is a prerequisite to obtaining a license to operate as a local entity.
Tax Compliance and Strategy
Setting up holding companies to enhance control and reduce taxes is a winning tax avoidance strategy. Within China, reducing tax burden is part of the obligation of the company finance director. It is also IPO Pang’s passion to facilitate, advise and strategize with the client to be in compliance with the tax code and develop a strategy to minimize tax burdens.
Financing in the U.S. with Chinese Investors
Flush with money from serving as the “factory of the world” and the real estate boom in Shanghai, Beijing and Guangzhou, many Chinese businessmen and entrepreneurs are ready, willing and capable of investing in overseas projects. And many have done so – in multi-million dollar projects ranging from biotechnology, medical devices, and food production to energy, mining and more. IPO Pang can help Chinese investors target key projects for their next money-making venture.
Corporate Governance, Compliance and Investigations
IPO PANG is a leader in providing general corporate governance and compliance advice to our multinational corporate clients. Nowhere is this service more acutely needed than when the corporate headquarters is thousands of miles away and the company subsidiary (generally a WFOE) is in China where supervision is lax and standards of ethical conduct are different.