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Legal Frameworks

Legal Frameworks

Legal Frameworks

In order to create favorable investment environment and to encourage overseas firms to invest in China, since the year of 1979 the Chinese government has gradually set up a relatively complete legal system, and constituted a foreign investment policy system, which mainly includes industrial policies, regional policies, regional policies, tax policies and financial polices. The main laws and regulations for foreign investments in china include (you can click the title and read the full text):

1.1 Major foreign investment laws and regulations

a) Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures;

b) Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures;

c) Law of the People's Republic of China on Wholly Foreign-Owned Enterprises;

d) Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises;

e) Provisions on Guiding Foreign Investment Direction;

f) Catalogue of Encouraged Foreign Investment Industries; Catalogue of Restricted Foreign Investment Industries; Catalogue of Prohibited Foreign Investment Industries

f) The law of P.R.C on the Protection Taiwan Compatriots' Investment.

(Notes: the related laws and regulations also apply to the investments from Hong Kong, Macao and Taiwan in China mainland.)

1.2 General Laws and Regulations

a) The Company Law of the People's Republic of China;

b) The Contract of the People's Republic of China;

c) The Insurance Law of the People's Republic of China;

d) The Arbitration Law of the People's Republic of China;

e) The Labor Law of the People's Republic of China;

f) Provisional Regulations of the People's Republic of China on Value-Added Tax;

g) Provisional Regulations of the People's Republic of China on Consumption Tax;

h) Provisional Regulations of the People's Republic of China on Business Tax;

1.3 International Treaties

(1) Bilateral Investment Treaties

(2) Bilateral Agreement on the Avoidance of Double Taxation

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