China has become the most relevant market in the world in several industries. Companies strive to find and implement successful strategies to export and distribute their products/services.
Approaches to marketing and distributing goods/services in China can be hugely different: from wholesale to retail, from franchising to agency, from pure-licensing to private labeling, and many others.
In order to optimize business operations in China several issues and peculiarities of the Chinese law system should be factored. Some key examples being: anti-trust provisions, custom regulations, tax compliance, advertising regulations, IP protection and compliance and franchising regulations.
HFG Key services:
- Legal/administrative business model validation and analysis
- IP strategy for distribution
- Distribution and franchising agreements
- Franchising operations registration
- Advertising compliance validation
- Sales/OEM/Agency contract
Litigation is a crucial area in HFG’s practice. When business operations reach a breaking point, it becomes the ultimate option to empower rights or to force the other party to negotiate.
Our vast experience ranges from commercial disputes, to credit collection, unfair competition, trade secret violation, property/evidence preservations, white collar crime, product liability/consumer protection, invention ownership, IP litigation.
Our team of are qualified to act as arbitrators and our services asssist clients in China before all Courts and arbitration commissions (CIETAC, SHIAC, etc.).
In specific cases – such as unfair competition, violation of corporate obligations/secrets, etc. – our investigating team can do preliminary intelligence activity aimed at (i) assessing the existence/extent of problems and (ii) collecting evidence to support litigation.
HR management is one of the toughest challenges for foreign investors in China. This challenge arises from great cultural differences, a very dynamic business environment with high turnover of skilled employees, aggressive competition by local and international players: taking good care of your team is difficult, yet crucial to improve efficiency and enhance performance.
Labor regulations in China are very much protective towards employees. This imposes a heavy burden on employers to justify any dismissal or job re-adjustment decisions, even in cases of serious misconduct by the employees.
Labor regulation compliance is a fundamental business tool as it allows achieving:
- good HR management;
- more freedom to take HR choices;
- greater control of internal affairs;
- prevention of internal conflict of interests;
- avoid employee misconducts (harassment, bribery, etc.)
- Labor contracts
- R&D personnel/invention ownership
- Internal corporate policies (confidentiality, conflict of interests, internal controls, etc..)
- Non-competition breach
- Labor litigation
Foreign investments in China are subject to a specific regulation, different from local investments.
People's Republic of China (PRC) authorities’ scrutiny and approval is required for most corporate transactions, from company set-up to Mergers & Acquisitions (M&A), and from change of business scope to increase of registered capital. This means great legal and procedural burden.
Investments shall be carefully planned, as several unique peculiarities need to be considered: business scope limitations, RMB/forex convertibility, special custom regimes (processing trade, free trade zones, etc.) capital contribution obligations and options, tax implications, administrative procedures intersecting with each other.
- Investment project legal/administrative validation and analysis
- Entitie set-up (WFOE, JV, Representative Office)
- M&A (domestic and cross border)
- Due diligence
- Liquidation of foreign investments
- Capital contribution through intangible (IP)
- Corporate ordinary operations
- Administrative problem solving (customs, SAFE/banks, AQSIQ, etc..)