Author: Horizons

Contracts 101: A Q&A on Contract Conclusion and Validity

From the simplest to the most complex business transactions, robust contracts are essential. At Horizons, we encounter many foreign companies drafting contracts for their Chinese subsidiaries without the mandatory clauses or drafted in English. In such cases, without taking the reasonable steps to ensure contracts are drafted properly and accordingly to the Chinese Law, the…

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Labour disputes in China – what you need to know

Labour disputes can be extremely costly for companies. Whilst robust employee handbooks, policies and procedures can reduce employee disputes, workplace conflicts can still arise. If left unchecked, companies can face not only legal liabilities but also internal operational disruptions, decreased morale and productivity, as well as possible external reputation damages. Under the Labour Law of…

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Futures and derivatives legislation in China

The Futures and Derivatives Law of the People's Republic of China ('FDL') was adopted by the National People's Congress on April 20th and is effective from August 1, 2022. The FDL is a historical development for the financial industry in China. Namely, it aligns future and derivative legislation with international netting practices and promotes standardisation…

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Risk managing export tax rebates in China

For exporters in China, indirect taxes paid during the production and distribution process can be refunded. Specifically, exporters are eligible for rebates on value-added tax (‘VAT’) and consumption tax (‘CT’) incurred during the production process.  Often export rebate policies are adjusted according to the current economic circumstances to support and promote exports. For example, since…

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Share transfer in China – what you need to know

Shareholders may wish to amend the share structure of their subsidiary in China for several reasons. Specifically, the existing share proportion between shareholders can be amended or ownership of shares can be transferred to an existing shareholder or third party (non-shareholder). In China, any changes to the share structure shall be filed at the Administration…

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