Nicolas Coster is a China-based lawyer with 16 years’ experience, he focuses on helping foreign companies with the legal issues they face when investing in or liquidating companies in China. In this video, Nicolas talks about how much easier it has become for foreigners to invest in China as well as the importance of making sure you know about and are compliant with all the tax regulations in China.
Takeaways: - It has become easier, faster, and cheaper for foreign investors to invest in Chinese companies with some of the red tape being removed. - The laws that are especially relevant to companies investing in a Chinese company are Company Law, Anti-Monopoly Law, and National Security Law. - From the point of view of both the buyer and the seller, the rate of capital gains tax should be assessed before the acquisition to prevent any misunderstandings after the deal has been signed. - The days of Special Purpose Vehicles set up in Hong Kong or Singapore and being used to avoid paying Capital Gains tax in China are long gone and engaging in tax evasion in China will land you in jail!
Jump to questions: 00:00 Introduction 00:27 What are the common legal barriers for inbound M&A which are still in existence now? 01:40 How do you see the new foreign investment law impacting on the future of M&A in China? 02:42 What kind of laws must foreign companies abide by when acquiring a Chinese company? 03:13 Before entering M&A in China, what kind of taxes from the buyer’s side and from the seller’s side have to be considered?
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What is Daxue Talks? Daxue Talks, a China business vlog powered by daxue consulting, a china-based strategic market research company founded in 2010! With Daxue Talks, you will stay up to date with all the latest business updates in China. Every day, you will learn from china-based experts who share their knowledge about the Chinese market in 2-5 minutes.