The latest from China & Hong Kong

Setting up a company in China remains a viable route for international businesses seeking access to the domestic market, supply chains, or regional operations. At the same time, the registration process in 2026 places greater emphasis on accuracy, transparency, and alignment between what a company says it will do and what it actually does. This guide walks through the registration process step by step, highlights recent regulatory developments, and explains where foreign inve

For international groups operating across Hong Kong and Mainland China, getting the structure and reporting right is fundamental. While the two jurisdictions are closely connected commercially, they remain distinct from a legal, tax and regulatory perspective. Misunderstanding that distinction is where many compliance and operational issues arise. This article sets out how cross border operations are commonly structured, how activities should be reported, and what companies s

Discovering that your trademark has already been registered in China is unsettling, particularly when the mark is central to your commercial identity. This situation is common for overseas businesses entering the Chinese market later than expected or without early intellectual property planning. China operates on a first to file system. Rights are generally awarded to the party that files first, rather than the party that used the mark first elsewhere. That framework creates

For foreign companies operating in China, tax compliance is not limited to filing returns and paying liabilities on time. Chinese tax authorities increasingly assess businesses on their overall “tax health”, a broad view that looks at accuracy, consistency, internal controls, and behaviour over time. This guide explains what tax health means in the Chinese context, how it is assessed, and how foreign companies can build a stable, defensible position that supports growth, audi

Shenzhen remains one of China’s most established locations for foreign investment, particularly for technology, manufacturing, innovation and cross border trading businesses. Incorporation is relatively efficient by China standards, but it is still a regulated, document driven process that requires careful upfront planning. Decisions made at incorporation stage have lasting implications for tax exposure, staffing, profit repatriation and regulatory flexibility. This article o

Choosing where to establish a Foreign Invested Enterprise in China is a strategic decision with long term consequences. While cost savings often dominate early discussions, the city of registration directly affects tax treatment, regulatory exposure, labour risk, operational efficiency, and the ability to scale or exit cleanly. China should not be viewed as a single, uniform market. National laws are implemented locally, and the same business model can face very different out

Setting up a family office in Hong Kong is a strategic decision that requires alignment between investment objectives, tax planning and generational governance. While incorporation can be completed efficiently, the underlying structure must be designed for long-term resilience, particularly as global reporting and transparency requirements increase. Step 1: Determine the Appropriate Structure Common structures include: A Hong Kong private company acting as an investment holdi

For many international businesses, Shenzhen has become a preferred gateway into the Chinese market. Its proximity to Hong Kong, strong regulatory infrastructure and concentration of innovation driven industries make it well suited to phased entry and controlled expansion. Choosing Shenzhen as a starting point allows investors to test the market while maintaining flexibility on structure, staffing and capital commitment. This article outlines how businesses can use Shenzhen as

From 18 December 2025, China’s trade and customs framework will enter a new phase with the full implementation of the import tax exemption regime at the Hainan Free Trade Port. Under this framework, goods imported directly from overseas into Hainan — crossing the so-called “first line” — will, in most cases, be exempt from import tariffs, import-stage VAT, and consumption tax. This is not a pilot or a limited incentive. It represents a structural shift in how China facilitate

China’s compliance environment is shifting at a pace that requires foreign-invested enterprises to rethink how they manage regulatory risk. The theme for 2026 is clear: compliance is no longer a checklist of obligations. It is a strategic capability — one that can either support sustainable growth or expose an organisation to operational delays, penalties or reputational damage. For companies already operating in China, the next year brings sharper enforcement, more data-driv

Operating a business in China comes with tremendous opportunities—but it also comes with strict legal obligations. One of the most important responsibilities for any company is completing the annual compliance procedure, which is mandatory for all registered entities. Missing deadlines or submitting incorrect filings can lead to fines, restrictions, or even suspension of your business license. What Is China’s Annual Compliance Procedure? China’s annual compliance process typi

Hong Kong continues to refine its position as one of the world’s most business-friendly jurisdictions. For companies expanding into Asia or strengthening their regional footprint, the city’s recent tax policy shifts underscore a clear objective: maintain competitiveness while aligning with emerging global standards. For foreign investors, understanding how these changes work in practice is essential for strategic planning in 2026 and beyond. A Evolving Tax Environment Designe

As 2026 unfolds, incorporating in China remains a compelling—but complex—move for many foreign companies seeking growth in the world’s second-largest economy. Recent regulatory reforms, technological advances and evolving legal frameworks have changed the path to incorporation. Below is a guide to the “blueprint” investors should follow and the key strategic decisions they need to make when setting up a company in China in 2026. What’s Changed and What’s New by 2026 The Forei

Für international tätige Unternehmen mit Aktivitäten in Hongkong ist die Einhaltung der Profits-Tax-Vorschriften selten unkompliziert. Obwohl das territoriale Steuersystem Hongkongs oft als einfach wahrgenommen wird, ist seine praktische Anwendung insbesondere für grenzüberschreitend tätige Gruppen, regionale Hauptsitze und Holdingstrukturen mit erheblicher Komplexität verbunden. Dieser Beitrag beschreibt die häufigsten Risiken im Zusammenhang mit der Profits-Tax-Erklärung in

Hainan is no longer simply a regional development zone. From December 2025, it becomes a strategic platform for foreign businesses looking to enter, expand, or restructure their presence in China. Used properly, Hainan can act as a controlled interface between international markets and mainland China — reducing friction while preserving compliance. This article focuses on how businesses are using Hainan in practice. Hainan’s strategic positioning Hainan’s model deliberately s

Shenzhen is one of the most efficient cities in China for establishing a new business, yet the process remains highly regulated. Company formation, licensing and regulatory approvals must align precisely with the intended commercial activity. For overseas investors, misunderstandings at this stage often lead to delays, scope restrictions or future compliance exposure. This article explains how to set up a company in Shenzhen, covering legal structures, licensing requirements

Over the past year, both Mainland China and Hong Kong Special Administrative Region (Hong Kong SAR) have significantly updated their visa and talent‑mobility regimes. For global firms looking to expand or deepen their presence in Asia, these changes sharpen the business case for using China/Hong Kong as hubs — but also demand careful strategy. What’s new: Key Visa & Talent‑Mobility Updates China’s expanded cross‑border talent endorsement & transit policies In November 2025, C

Year-end close in China is often viewed as a technical requirement — a box-checking exercise that sits with finance and compliance teams. But as China’s regulatory landscape becomes more integrated, data-driven and enforcement-focused, year-end procedures have taken on a different strategic role. They now act as an annual stress-test of whether a company’s China operations are aligned with its global governance, risk and growth ambitions. For foreign-invested enterprises, thi

We’re almost at the end of 2025, and one thing has become clear: business in China is constantly evolving, and the pace of change doesn’t seem to be slowing. Over the past few months, I’ve had the chance to speak with a wide range of clients, from startups entering the market to multinational corporations managing complex operations, and the conversations all come back to one question: what’s actually important right now? Businesses are asking this because the environment is

For companies entering or expanding within China, securing trademark protection is one of the most important early steps. China’s “first-to-file” system means that the first party to register a trademark—rather than the first to use it—typically gains legal ownership. This creates both an opportunity and a risk: well-prepared businesses can protect their brand quickly and effectively, while those who delay may face disputes, costly buybacks, or brand restrictions. Trademark r