In recent years, Chinese companies especially Zhejiang companies have been investing in various forms in the United States, the European Union and many other countries. Such overseas investments entail a much greater risk than investment within china, due to the lack of familiarity with the legal systems and business climate of the host nation. For this reason, a thorough review and analysis of the legislation, judicial system and practice in the host country must take place before a decision is reached with respect to the intended overseas investment, and to secure the best possible terms of investment.
Drawing upon the strength of many successful experiences, Zhejiang Overseas Investment Center is confident of its ability to provide comprehensive legal services relating to overseas investment in the most cost-effective manner, and is always prepared to utilize, if necessary, the strong network of international law firms it has built through the course of the overseas investment projects it has handled.
Having efficiently and successfully represented Chinese clients in many small and large-scale investment transactions, Center has earned excellent feedbacks from its clients. In particular, expertise and know-how in certain specialized areas of law are often required for a thorough representation of the client's interest, depending on the client’s intended field of investment.
Investments into foreign countries by Chinese entities take place in various forms, including establishment of a wholly- owned subsidiary or branch in the foreign countries, entering into a joint venture with a overseas partner by formation of a new joint venture company or investing in an existing foreign company, outright acquisition of a host countries company, or investment in a listed foreign company through the stock exchange. china especially Zhejiang province has fully recognized the importance of overseas investment as a measure to overcome its relative weakness in capital, and investment into other developed or developing countries has been quite successfully utilized as a vehicle for economic development in the past decades.
A Chinese investor undergoes various procedures to effect the investment. For instance, in order for a Chinese entity to establish a joint venture company with a foreign entity, it must enter into a joint venture agreement, file the required reports pursuant to the foreign capital inducement laws, file a merger report pursuant to the Fair Trade Act, prepare the Articles of Incorporation for the joint venture company, remit the investment funds into the country of destination, record the joint venture company with the court register, register the joint venture company with the Tax Office, lease an office space, obtain licenses for the relevant type of business to be conducted, and prepare employment agreements and internal regulations of the joint venture company. Throughout these stages of effecting the investment, it is necessary for the foreign investor to obtain various forms of legal services including advice on specific issues that may or may not have been foreseen. Examples of such services include drafting and negotiation of joint venture agreements, preparation and filing of various reports, and other necessary documentations.