A must in China not a maybe. Before commencing business operations in China, companies must have obtained a business license from the company registration authority – usually the Administrative of Industry and Commence. The license demonstrates that the company is legal established. Once administrative formalities are completed and approved, such license is issued to the…
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Standard Contract for international personal data transfers finalised and comes into effect on 1 June 2023. On 24 February 2023, the Cyberspace Administration of China (“CAC”) issued the Measures for the Standard Contract for Outbound Cross-border Transfer of Personal Information ("Measures"). Primarily, the Measures finalise one of the key components in cross-border personal data transfers,…
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Distributing dividends in China from the company’s capital contributions is prohibited. Any capital reduction shall be agreed by the board of shareholders and shareholders’ resolutions shall be passed. However, capital reduction shall not be conducted for the purpose of dividends. At Horizons, we encounter many cases of indirect illegal dividends distribution, where the overseas headquarters…
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