The latest from China & Hong Kong

Client Profile A European technology manufacturer entered China in 2019, establishing a wholly foreign-owned enterprise (WFOE) in Shanghai. The company had grown quickly, supplying components to domestic and international clients. By 2025, they faced a critical question: Was their China structure still serving their long-term goals—or holding them back? The Challenge The client’s setup had been built for rapid market entry , not strategic sustainability . As China’s regulat

China’s data governance framework has undergone one of the most extensive transformations in the world, driven by three core laws: the Personal Information Protection Law (PIPL), the Data Security Law (DSL) and the Cybersecurity Law (CSL). As we approach 2026, regulatory expectations are tightening, enforcement continues to intensify, and foreign businesses operating in China must ensure their data compliance frameworks meet the updated requirements. This is not simply a lega

Hong Kong’s extensive network of double taxation treaties (DTAs) continues to strengthen its position as a leading international business hub. These agreements reduce tax barriers for companies engaged in cross-border trade, investment, and regional management activities. As global tax standards evolve and international cooperation deepens, Hong Kong’s treaty network is expanding both in scope and complexity. For entrepreneurs, SMEs, and multinational groups, understanding th

China’s Company Law continues to evolve in ways that reshape governance, shareholder obligations and capital requirements for foreign-invested enterprises. As the 2026 regulatory cycle approaches, the focus for businesses should be on practical readiness: how these changes will affect structures, reporting, internal controls and the day-to-day running of China operations. For multinational groups, the updates are not simply technical. They influence investment planning, trans

If your organisation operates in or processes data from Hong Kong — whether through local offices, cloud services, regional centres, or cross-border operations — understanding the region’s data-privacy framework is essential. Recent legislative developments and enforcement activity are reshaping how companies must approach compliance and data governance. Legal Framework and Emerging Trends Key law: The Personal Data (Privacy) Ordinance (PDPO) (Cap. 486) remains Hong Kong’s co

Für Unternehmen, die in China tätig sind, ist es entscheidend, über Änderungen in der Steuerpolitik auf dem Laufenden zu bleiben. Im Jahr 2025 gab es bereits mehrere bedeutende Entwicklungen, die die Körperschaftsteuer (CIT), die Mehrwertsteuer (VAT), die Verbrauchsteuer sowie allgemeine Compliance-Vorschriften betreffen. Diese Reformen spiegeln Pekings doppelten Fokus wider – die Stabilisierung der Staatseinnahmen und die Förderung von Investitionen und Wachstum. Dieser mona

Expanding into China remains one of the most rewarding — and complex — decisions for international businesses. With its large consumer base, advanced supply chains, and policy focus on innovation, China continues to attract investors from around the world. However, entering the market requires careful planning. The right business structure not only determines your operational flexibility but also your tax exposure, compliance obligations, and long-term growth potential. As we

When setting up a company in China, one of the most critical — and often misunderstood — steps is defining your business scope. This short statement may look simple on paper, but it plays a defining role in how your company operates, the licences it requires, and the activities it can legally perform. In China’s regulatory environment, precision matters. Your business scope determines your company’s eligibility for tax treatment, access to incentives, and compliance obligatio

Hong Kong remains one of Asia’s most competitive tax jurisdictions, but the landscape is shifting. International standards, cross-border tax transparency, and the ongoing implementation of global tax reform initiatives are reshaping how entrepreneurs and SMEs must plan for 2026 and beyond. These changes do not diminish Hong Kong’s strengths, but they do require closer attention to compliance, documentation, and strategic structuring. Understanding the direction of travel is e

Die Gründung eines Unternehmens in Hongkong ist aufgrund des effizienten Gründungsverfahrens, des einfachen Steuersystems und des soliden rechtlichen Rahmens eine beliebte Wahl für Unternehmer. Dennoch unterschätzen viele neue Gründer die Bedeutung der Pflichten nach der Gründung – insbesondere im Hinblick auf die jährlichen Finanzberichterstattungspflichten. Die Nichteinhaltung dieser Verpflichtungen kann zu Geldstrafen, rechtlichen Problemen und Reputationsschäden führen. D

This article is part of Woodburn's guides to registering a company in Hong Kong and Hong Kong company secretary services.

Client Background Our client, a mid-sized European consumer goods company, operates a Wholly Foreign-Owned Enterprise (WFOE) in Shanghai, employing over 60 local staff. As their business grew, they began struggling with payroll accuracy, overtime management, and compliance coordination around China’s public holidays, particularly during the Chinese New Year period, when year-end reporting and employee leave overlap. By late 2024, they were facing a perfect storm: Their financ

Hong Kong’s regulatory environment is undergoing one of its most significant periods of transformation in the past decade. The city continues to strengthen its position as a trusted international financial and business hub, while simultaneously aligning with global standards in areas such as data privacy, ESG, corporate governance, anti-money-laundering (AML), and digital regulation. For companies operating in or through Hong Kong, this means the compliance function is no lon

Comprendre les droits aux congés annuels et la réglementation relative aux jours fériés en Chine est essentiel pour toute entreprise opérant sur le territoire chinois. Le respect des lois locales du travail garantit non seulement la conformité juridique, mais contribue également à la satisfaction des employés et à l’efficacité opérationnelle. Cet article présente une analyse experte des obligations légales relatives aux congés payés et aux jours fériés nationaux en Chine, des

As China continues to evolve its economic landscape, the financial relationship between Hong Kong and Mainland China remains one of the most strategically significant in the world. For foreign investors, this cross-border link offers a powerful way to optimise tax exposure, simplify profit repatriation, and protect assets — but only if structured correctly. Heading into 2026, policy alignment, regulatory transparency, and digitalisation within both jurisdictions are creating

Beim Ausbau oder Betrieb eines Unternehmens in China zählt die Einhaltung der Mindestlohnvorschriften zu den wichtigsten Compliance-Anforderungen – sowohl für ausländisch investierte Unternehmen (FIEs) als auch für inländische Gesellschaften. Ein fundiertes Verständnis darüber, wie Mindestlöhne in China festgelegt, angewendet und durchgesetzt werden, ist entscheidend, um gesetzliche Vorgaben einzuhalten, Bußgelder zu vermeiden und gute Arbeitsbeziehungen zu gewährleisten. Fes

After years of operating in China, some foreign businesses reach a point where they need to restructure, downsize, or withdraw entirely. Whether driven by shifting market conditions, new global priorities, or internal consolidation, the process must be handled carefully. Exiting or restructuring a China entity is not as simple as shutting down operations. It involves a complex sequence of tax clearances, regulatory filings, employee settlements, and deregistration procedures

Für ausländisch investierte Unternehmen in China war 2025 ein Jahr sowohl verstärkter Regulierung als auch neuer strategischer Chancen. Mit Blick auf 2026 wird der Erfolg davon abhängen, wie effektiv Unternehmen sich an politische Veränderungen, veränderte Verbraucher­erwartungen und einen zunehmend wettbewerbsintensiven Markt anpassen. 1. Geschäftsstrategie neu bewerten Beginnen Sie mit einer umfassenden Überprüfung der betrieblichen Abläufe. Identifizieren Sie Bereiche, in

Hong Kong continues to position itself as one of Asia’s most attractive destinations for foreign investment. Its straightforward tax system, competitive rates, and expanding network of international agreements make it a strategic choice for entrepreneurs, multinational groups, and SMEs looking to establish or grow their regional operations. As global tax reform moves forward and economic policies evolve, investors in 2026 will find that Hong Kong’s incentive landscape offers

In recent years, Hong Kong’s banking sector has witnessed a significant shift toward digital-first and branchless banking models. Neobanks—also called virtual banks or digital banks—are transforming the way individuals and businesses manage finances by offering streamlined, technology-driven services without a traditional branch network. For companies and entrepreneurs operating in Hong Kong, the emergence of neobanks presents both new opportunities and important consideratio