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Corporate Restructuring 2010

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This document provides an overview of investment vehicle options and considerations for entering and growing a business in China. It outlines two main options - establishing a holding company offshore or setting up a wholly foreign-owned enterprise (WFOE) directly in China. The key benefits and risks of each approach are discussed. Tax rates, legal structures, capital requirements and the investment approval process are also reviewed to help evaluate the best strategy.

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Solutions for China Entry & Growth
Investment Vehicle Options Op#on 1 Op#on 2 ≒ Buffer between Parent Parent Parent and China Co Co Operations ≒ Tax Optimization / Profit Repatriation ≒ Future sale or investment/ restructuring Hold Co simplified ≒ Option to take local partner Overseas Overseas offshore ≒ Modern legal PRC PRC structure and mature rule of law WFOE WFOE The JLJ Group All Rights Reserved - July 22, 2010 2
Withholding Tax on Dividends Tax Treatment Countries Notes ≒ Applicable for investments of 0% Georgia 50% with a total investment of EUR200 million Kuwait, Mongolia, Mauritius, Slovenia, Jamaica, Yugoslavia, Sudan, Laos, South Africa, Croatia, 5% Macedonia, Seychelles, Barbados, Oman, Bahrain, Saudi Arabia Luxemburg, Korea, Ukraine, Armenia, Iceland, ≒ Must hold at least 25% of the 5% Lithuania, Latvia, Estonia, Ireland, Moldova, Cuba, investment Trinidad and Tobago, Hong Kong, Singapore ≒ Must hold at least 25% of the 7% Austria investment 8% Egypt, Tunis, Mexico 10% Most other Countries The JLJ Group All Rights Reserved - July 22, 2010 3
Hong Kong Holding Company ≒ Tax rate: 16.5% income tax ≒ No VAT, Capital Gains, or Sales tax ≒ No withholding tax on dividends and interest ≒ Low country risk and strong rule of law ≒ Ease of disposal, acquisition and restructuring Jurisdiction FDI 2009 (Billion) Hong Kong US$54 Taiwan 6.6 Japan 4.1 Singapore 3.9 United States 3.6 The #1 source of FDI for China (32% YOY Growth) The JLJ Group All Rights Reserved - July 22, 2010 4
Investment Vehicle Options II Substance Over Form Op#on 2 ≒ Reduced Tax Rate Exclusions: If State Parent Administration of Taxation (SAT) deems the offshore Co companys day to day management occurs within Mainland China, the offshore company may be subject to corporate income tax in Mainland China ≒ Effective Management Rule: Offshore holding companies with no substantive business activities may not qualify for reduced withholding tax rates as per tax Hold Co treaties between the jurisdiction it is located and Mainland China Overseas ≒ Indirect Transfer of Assets: an investor that has structured its equity interest in a Mainland China PRC enterprise through an offshore holding company could be subject to an additional tax burden within China, in the event that the investor sells interests in the offshore company WFOE Dont Forget to Consider Benefits Between the Hold Co and the Parent Company The JLJ Group All Rights Reserved - July 22, 2010 5
New Rep. Office Restrictions Prior to January 2010 New RO Current RO May maintain current Foreign No Limit No more than 4 allowed Representatives but not Representatives additional Reps. Effective Tax Rate 8.8% ~10.9% ~10.9% 1 year after current Duration of entity 3 years 1 year license expires Registration COI + Bank Statement COI Authenticated N/A Complexity Authenticated Renewal N/A COI Authenticated COI Authenticated Complexity Parent Company Must be a legal entity in Must exist for at least 2 home country N/A Qualification years in home country The JLJ Group All Rights Reserved - July 22, 2010 6
Foreign Investment Catalog Investment Categories Status of Description Examples industry/activity ≒ Special incentives possible ≒ Manufacture of high-performance Encouraged welding robots ≒ Usually high-tech or agriculture industries ≒ Software Development ≒ All activities not mentioned in catalog are permitted Permitted ≒ All sectors not mentioned in catalog ≒ But may be difficult to get approval for uncommon activities ≒ Special approval required usually JV ≒ Automotive Production partner necessary Restricted ≒ Operation of oil refineries ≒ Usually are protected sectors ≒ Media production ≒ Activities are disallowed ≒ Arms manufacturing Prohibited ≒ Harms national interests or ≒ Operation of gaming industry environmentally damaging When considering setting up in China, first step is to check the catalog The JLJ Group All Rights Reserved - July 22, 2010 7
Foreign Investment Catalog Legal Setup Options Investment Restrictions Setup Options Description Encouraged Permitted Restricted Prohibited ≒ Liaison office for parent Representative Office company (RO) Foreign Invested Enterprises (FIEs) Wholly Foreign Owned Enterprise (WOFE) ≒ Service WFOEs ≒ 100% invested and owned by foreign ≒ FICE entities ≒ Manufacturing WFOE ≒Trading WOFE Equity Joint Venture ≒ Capital investment from both foreign and (EJV) Chinese entities ≒ Partnership between Cooperative Joint foreign and Chinese Venture (CJV) entities The JLJ Group All Rights Reserved - July 22, 2010 8
Nature of Business Import/Export Domestic Service Capital Registration Rights Distribution Activities Requirements Complexity Rep. Office Service WFOE Manufacturing WFOE FICE WFOEs provide greater flexibility for future operations The JLJ Group All Rights Reserved - July 22, 2010 9
Entity Options Analysis Sourcing ≒ Simplifies tax exposure (~8.8% on Conduct negotiations, QC for Parent expenditures), registration complexity, & initial company . investment Rep. Office ≒ Heavy reliance upon 3rd party agents to facilitate trade ≒ May cause additional tax exposure if effective Legal Gray Illegal management is within China ≒ Not scalable Provide sourcing consulting services ≒ Allows more sophisticated means of tax exclusively to Parent Company optimization Service WFOE ≒ Heavy reliance upon 3rd party agents to facilitate trade Legal Gray Illegal ≒ May cause additional tax exposure if effective management is within China ≒ Not scalable ≒ Allows for the flexibility to bring more of the Source from within China then sell to supply chain in-house FICE Customer direct ≒ Platform for future domestic distribution ≒ More sophisticated tax optimization ≒ Allows flexibility for future expansion of Legal Gray Illegal business scope and scalability ≒ Greater administrative costs/overhead ≒ May cause tax complications if used as a captive business model The JLJ Group All Rights Reserved - July 22, 2010 10
Entity Options Analysis Services ≒ Simplifies tax exposure (~10.9% on Conduct services /BD through local office expenditures), registration complexity, & initial while all invoicing is conducted offshore. Rep. Office investment ≒ Not a substantial presence in the market; may deter potential clients Legal Gray Illegal ≒ May cause additional tax exposure if effective management is within China ≒ Must setup a separate RO to expand presence ≒ Allows more sophisticated means of tax optimization ≒ Direct hire of local employees Provide services and invoicing directly to ≒ Substantial presence within China with ability local & International clients Service WFOE to issue Fapiao ≒ Option to establish branch office to expand presence Legal Gray Illegal ≒ May require higher upfront costs and greater overhead ≒ May cause tax complications if used as a captive business model The JLJ Group All Rights Reserved - July 22, 2010 11
Entity Options Analysis Extension of Business Scope Manufacturing / Import/Export Domestic Service Development Tax Treatment Rights Distribution Activities Rights Manufacturing WFOE FICE Mfg + FICE The JLJ Group All Rights Reserved - July 22, 2010 12
Incentive Programs ≒ 2009 economic downturn has spurred many local governments to provide additional incentives for establishing your FIE within their jurisdiction Recognizing encouraged statuses before official approval Reduced rates for local portion of tax 2/3 Tax Holidays Reduced fees for land-use rights Subsidized rentals and expat housing ≒ Local incentive programs, once secured, may be tenuous at best Special Incentives should not be the only priority in choosing a location The JLJ Group All Rights Reserved - July 22, 2010 13
Corporate Restructuring RO to WFOE- Current Location Cancela#on of RO Submit for Local Tax License and other Begin Final Audit for RO Bureau Cancela#on cer#鍖ca#ons/WFOE (1-足2 Months) (~4 months) Document Prepara#on (1month) WFOE Name approval Business License Post-足License & Lease Registra#on (1 month) registra#on (1 month) (~1 month) Entire process can take up to 10/12 months to complete The JLJ Group All Rights Reserved - July 22, 2010 14
Corporate Restructuring RO to WFOE New Location Cancela#on of RO Submit for Local Tax License and other Begin Final Audit for RO Bureau Cancela#on cer#鍖ca#ons/WFOE (1-足2 Months) (~4 months) Document Prepara#on (1month) WFOE Name approval & Lease Registra#on in Business License Post-足License New Loca#on (1 month) registra#on (1 month) (~1 month) Changing office locations can shave months off of the process The JLJ Group All Rights Reserved - July 22, 2010 15
Capital Requirements Injection Methods Total Investment Registered Capital No less than 70% of total ≒ Complete injection within 6 Less than 3 million investment, with a minimum months of 3,700 -or- ≒ Capital contributed in No less than 50% of total installments: 20% within investment with a minimum first 3 months with the Between 3 and 10 million of 2.1 million if total remaining injected within 2 investment is below 4.2 years million Currency: US Dollars No less than 40% of total investment with a minimum Between 10 and 30 million of 5 million if total investment is below 12.5 million No less than 1/3 of total Between 30 and 36 million investment with a minimum of 12 million The JLJ Group All Rights Reserved - July 22, 2010 16
Capital Requirements Investment Ratios ≒ Registered Capital (RC) Foreign Contributed Capital Up to 70% of Non-Cash Assets ≒ Total Investment (TI) Combination of Equity and Debt Must maintain Ratio: RC/TI ≒ Non-Cash Assets may include Tangible and Non-Tangible Assets Intellectual Property Rights (i.e. Software) Hardware and a Catchall for Most Items with Monetary Value Valuation procedure may be complicated and time consuming Cash Investment is the Fastest Method of Investment The JLJ Group All Rights Reserved - July 22, 2010 17
Capital Requirements Investment Ratio Examples Example 1 Registered Capital Equity (100%) Total Investment Example 2 Registered Capital Equity (70%) Debt (30%) Total Investment Shareholder loans are an alternative means of profit repatriation The JLJ Group All Rights Reserved - July 22, 2010 18
Business Registration Process WFOE Companys Chinese Name Approval Stage I: Licensing Approval to Establish Company Registration of Business License Filing and Carving Seals* Enterprise Code Certification** Foreign Exchange Approval Registration with Tax Bureau Stage II: Post- Licensing Statistics Bureau Registration Open RMB & Foreign Currency Bank Accounts Stage III: Capital Verification Post-Capital Injection Update Business License *Official company stamps required for many business and banking transactions in China ** Equivalent to a personal identification number for the licensed company ≒ This process can be completed at any stage following foreign exchange approval and registration with the tax bureau The JLJ Group All Rights Reserved - July 22, 2010 19
Business Compliance The License ≒ Describes the following information: Official Name of Company Business Scope Registered Capital & Total Investment Currently injected Capital Expiration Date ≒ Greenfield MFG WFOE 50 years ≒ Service WFOE 30 years ≒ RO 1 year ≒ ROs must renew their license every year ≒ WFOEs must conduct an Annual Inspection The JLJ Group All Rights Reserved - July 22, 2010 20
Business Compliance The Capital ≒ Injection Options Full injection within six months 15% to 20% within 3 months, and the remaining over 2 years ≒ Inject on Time Late injection 損 Felony by law Pudong: License termination for late injection ≒ 100% Capital Injection is required to Change office location Open Branch Office Increase capital ≒ Important to update Relevant Bureau & Business Licenses Inject capital on time and update your business license The JLJ Group All Rights Reserved - July 22, 2010 21
Business Compliance The Process ≒ Annual Audit and Examination Occurs between Mar 1st and June 30th every year ≒ Requires a Financial Audit ≒ Rep Offices: deadline by 30th Apr (only require financial audit) ≒ Examination by 7 Chinese authorities ≒ Joint examination offers simpler process (14th Apr to 23rd May) Miss it twice License terminated ≒ Company Alterations Renewals Office Location Key Company Details ≒ Chief Rep, Board Chairman, Executive Director, and Supervisor ≒ Company Name, Investors, etc Increasing Registered Capital Expanding Business Scope Try not to miss the joint examination Simplifies work significantly The JLJ Group All Rights Reserved - July 22, 2010 22
China by the Numbers "FDI U#lized (USD Billion)" 100 90 80 70 60 50 40 30 20 10 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 FDI in 2009: 90.0bn -2.6% decrease over 2008 Source: National Bureau of Statistics/USCBC The JLJ Group All Rights Reserved - July 22, 2010 23
China by the Numbers FDI By Investment Vehicle WFOE EJV CJV 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: National Bureau of Statistics/USCBC The JLJ Group All Rights Reserved - July 22, 2010 24

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Corporate Restructuring 2010

  • 1. Solutions for China Entry & Growth
  • 2. Investment Vehicle Options Op#on 1 Op#on 2 ≒ Buffer between Parent Parent Parent and China Co Co Operations ≒ Tax Optimization / Profit Repatriation ≒ Future sale or investment/ restructuring Hold Co simplified ≒ Option to take local partner Overseas Overseas offshore ≒ Modern legal PRC PRC structure and mature rule of law WFOE WFOE The JLJ Group All Rights Reserved - July 22, 2010 2
  • 3. Withholding Tax on Dividends Tax Treatment Countries Notes ≒ Applicable for investments of 0% Georgia 50% with a total investment of EUR200 million Kuwait, Mongolia, Mauritius, Slovenia, Jamaica, Yugoslavia, Sudan, Laos, South Africa, Croatia, 5% Macedonia, Seychelles, Barbados, Oman, Bahrain, Saudi Arabia Luxemburg, Korea, Ukraine, Armenia, Iceland, ≒ Must hold at least 25% of the 5% Lithuania, Latvia, Estonia, Ireland, Moldova, Cuba, investment Trinidad and Tobago, Hong Kong, Singapore ≒ Must hold at least 25% of the 7% Austria investment 8% Egypt, Tunis, Mexico 10% Most other Countries The JLJ Group All Rights Reserved - July 22, 2010 3
  • 4. Hong Kong Holding Company ≒ Tax rate: 16.5% income tax ≒ No VAT, Capital Gains, or Sales tax ≒ No withholding tax on dividends and interest ≒ Low country risk and strong rule of law ≒ Ease of disposal, acquisition and restructuring Jurisdiction FDI 2009 (Billion) Hong Kong US$54 Taiwan 6.6 Japan 4.1 Singapore 3.9 United States 3.6 The #1 source of FDI for China (32% YOY Growth) The JLJ Group All Rights Reserved - July 22, 2010 4
  • 5. Investment Vehicle Options II Substance Over Form Op#on 2 ≒ Reduced Tax Rate Exclusions: If State Parent Administration of Taxation (SAT) deems the offshore Co companys day to day management occurs within Mainland China, the offshore company may be subject to corporate income tax in Mainland China ≒ Effective Management Rule: Offshore holding companies with no substantive business activities may not qualify for reduced withholding tax rates as per tax Hold Co treaties between the jurisdiction it is located and Mainland China Overseas ≒ Indirect Transfer of Assets: an investor that has structured its equity interest in a Mainland China PRC enterprise through an offshore holding company could be subject to an additional tax burden within China, in the event that the investor sells interests in the offshore company WFOE Dont Forget to Consider Benefits Between the Hold Co and the Parent Company The JLJ Group All Rights Reserved - July 22, 2010 5
  • 6. New Rep. Office Restrictions Prior to January 2010 New RO Current RO May maintain current Foreign No Limit No more than 4 allowed Representatives but not Representatives additional Reps. Effective Tax Rate 8.8% ~10.9% ~10.9% 1 year after current Duration of entity 3 years 1 year license expires Registration COI + Bank Statement COI Authenticated N/A Complexity Authenticated Renewal N/A COI Authenticated COI Authenticated Complexity Parent Company Must be a legal entity in Must exist for at least 2 home country N/A Qualification years in home country The JLJ Group All Rights Reserved - July 22, 2010 6
  • 7. Foreign Investment Catalog Investment Categories Status of Description Examples industry/activity ≒ Special incentives possible ≒ Manufacture of high-performance Encouraged welding robots ≒ Usually high-tech or agriculture industries ≒ Software Development ≒ All activities not mentioned in catalog are permitted Permitted ≒ All sectors not mentioned in catalog ≒ But may be difficult to get approval for uncommon activities ≒ Special approval required usually JV ≒ Automotive Production partner necessary Restricted ≒ Operation of oil refineries ≒ Usually are protected sectors ≒ Media production ≒ Activities are disallowed ≒ Arms manufacturing Prohibited ≒ Harms national interests or ≒ Operation of gaming industry environmentally damaging When considering setting up in China, first step is to check the catalog The JLJ Group All Rights Reserved - July 22, 2010 7
  • 8. Foreign Investment Catalog Legal Setup Options Investment Restrictions Setup Options Description Encouraged Permitted Restricted Prohibited ≒ Liaison office for parent Representative Office company (RO) Foreign Invested Enterprises (FIEs) Wholly Foreign Owned Enterprise (WOFE) ≒ Service WFOEs ≒ 100% invested and owned by foreign ≒ FICE entities ≒ Manufacturing WFOE ≒Trading WOFE Equity Joint Venture ≒ Capital investment from both foreign and (EJV) Chinese entities ≒ Partnership between Cooperative Joint foreign and Chinese Venture (CJV) entities The JLJ Group All Rights Reserved - July 22, 2010 8
  • 9. Nature of Business Import/Export Domestic Service Capital Registration Rights Distribution Activities Requirements Complexity Rep. Office Service WFOE Manufacturing WFOE FICE WFOEs provide greater flexibility for future operations The JLJ Group All Rights Reserved - July 22, 2010 9
  • 10. Entity Options Analysis Sourcing ≒ Simplifies tax exposure (~8.8% on Conduct negotiations, QC for Parent expenditures), registration complexity, & initial company . investment Rep. Office ≒ Heavy reliance upon 3rd party agents to facilitate trade ≒ May cause additional tax exposure if effective Legal Gray Illegal management is within China ≒ Not scalable Provide sourcing consulting services ≒ Allows more sophisticated means of tax exclusively to Parent Company optimization Service WFOE ≒ Heavy reliance upon 3rd party agents to facilitate trade Legal Gray Illegal ≒ May cause additional tax exposure if effective management is within China ≒ Not scalable ≒ Allows for the flexibility to bring more of the Source from within China then sell to supply chain in-house FICE Customer direct ≒ Platform for future domestic distribution ≒ More sophisticated tax optimization ≒ Allows flexibility for future expansion of Legal Gray Illegal business scope and scalability ≒ Greater administrative costs/overhead ≒ May cause tax complications if used as a captive business model The JLJ Group All Rights Reserved - July 22, 2010 10
  • 11. Entity Options Analysis Services ≒ Simplifies tax exposure (~10.9% on Conduct services /BD through local office expenditures), registration complexity, & initial while all invoicing is conducted offshore. Rep. Office investment ≒ Not a substantial presence in the market; may deter potential clients Legal Gray Illegal ≒ May cause additional tax exposure if effective management is within China ≒ Must setup a separate RO to expand presence ≒ Allows more sophisticated means of tax optimization ≒ Direct hire of local employees Provide services and invoicing directly to ≒ Substantial presence within China with ability local & International clients Service WFOE to issue Fapiao ≒ Option to establish branch office to expand presence Legal Gray Illegal ≒ May require higher upfront costs and greater overhead ≒ May cause tax complications if used as a captive business model The JLJ Group All Rights Reserved - July 22, 2010 11
  • 12. Entity Options Analysis Extension of Business Scope Manufacturing / Import/Export Domestic Service Development Tax Treatment Rights Distribution Activities Rights Manufacturing WFOE FICE Mfg + FICE The JLJ Group All Rights Reserved - July 22, 2010 12
  • 13. Incentive Programs ≒ 2009 economic downturn has spurred many local governments to provide additional incentives for establishing your FIE within their jurisdiction Recognizing encouraged statuses before official approval Reduced rates for local portion of tax 2/3 Tax Holidays Reduced fees for land-use rights Subsidized rentals and expat housing ≒ Local incentive programs, once secured, may be tenuous at best Special Incentives should not be the only priority in choosing a location The JLJ Group All Rights Reserved - July 22, 2010 13
  • 14. Corporate Restructuring RO to WFOE- Current Location Cancela#on of RO Submit for Local Tax License and other Begin Final Audit for RO Bureau Cancela#on cer#鍖ca#ons/WFOE (1-足2 Months) (~4 months) Document Prepara#on (1month) WFOE Name approval Business License Post-足License & Lease Registra#on (1 month) registra#on (1 month) (~1 month) Entire process can take up to 10/12 months to complete The JLJ Group All Rights Reserved - July 22, 2010 14
  • 15. Corporate Restructuring RO to WFOE New Location Cancela#on of RO Submit for Local Tax License and other Begin Final Audit for RO Bureau Cancela#on cer#鍖ca#ons/WFOE (1-足2 Months) (~4 months) Document Prepara#on (1month) WFOE Name approval & Lease Registra#on in Business License Post-足License New Loca#on (1 month) registra#on (1 month) (~1 month) Changing office locations can shave months off of the process The JLJ Group All Rights Reserved - July 22, 2010 15
  • 16. Capital Requirements Injection Methods Total Investment Registered Capital No less than 70% of total ≒ Complete injection within 6 Less than 3 million investment, with a minimum months of 3,700 -or- ≒ Capital contributed in No less than 50% of total installments: 20% within investment with a minimum first 3 months with the Between 3 and 10 million of 2.1 million if total remaining injected within 2 investment is below 4.2 years million Currency: US Dollars No less than 40% of total investment with a minimum Between 10 and 30 million of 5 million if total investment is below 12.5 million No less than 1/3 of total Between 30 and 36 million investment with a minimum of 12 million The JLJ Group All Rights Reserved - July 22, 2010 16
  • 17. Capital Requirements Investment Ratios ≒ Registered Capital (RC) Foreign Contributed Capital Up to 70% of Non-Cash Assets ≒ Total Investment (TI) Combination of Equity and Debt Must maintain Ratio: RC/TI ≒ Non-Cash Assets may include Tangible and Non-Tangible Assets Intellectual Property Rights (i.e. Software) Hardware and a Catchall for Most Items with Monetary Value Valuation procedure may be complicated and time consuming Cash Investment is the Fastest Method of Investment The JLJ Group All Rights Reserved - July 22, 2010 17
  • 18. Capital Requirements Investment Ratio Examples Example 1 Registered Capital Equity (100%) Total Investment Example 2 Registered Capital Equity (70%) Debt (30%) Total Investment Shareholder loans are an alternative means of profit repatriation The JLJ Group All Rights Reserved - July 22, 2010 18
  • 19. Business Registration Process WFOE Companys Chinese Name Approval Stage I: Licensing Approval to Establish Company Registration of Business License Filing and Carving Seals* Enterprise Code Certification** Foreign Exchange Approval Registration with Tax Bureau Stage II: Post- Licensing Statistics Bureau Registration Open RMB & Foreign Currency Bank Accounts Stage III: Capital Verification Post-Capital Injection Update Business License *Official company stamps required for many business and banking transactions in China ** Equivalent to a personal identification number for the licensed company ≒ This process can be completed at any stage following foreign exchange approval and registration with the tax bureau The JLJ Group All Rights Reserved - July 22, 2010 19
  • 20. Business Compliance The License ≒ Describes the following information: Official Name of Company Business Scope Registered Capital & Total Investment Currently injected Capital Expiration Date ≒ Greenfield MFG WFOE 50 years ≒ Service WFOE 30 years ≒ RO 1 year ≒ ROs must renew their license every year ≒ WFOEs must conduct an Annual Inspection The JLJ Group All Rights Reserved - July 22, 2010 20
  • 21. Business Compliance The Capital ≒ Injection Options Full injection within six months 15% to 20% within 3 months, and the remaining over 2 years ≒ Inject on Time Late injection 損 Felony by law Pudong: License termination for late injection ≒ 100% Capital Injection is required to Change office location Open Branch Office Increase capital ≒ Important to update Relevant Bureau & Business Licenses Inject capital on time and update your business license The JLJ Group All Rights Reserved - July 22, 2010 21
  • 22. Business Compliance The Process ≒ Annual Audit and Examination Occurs between Mar 1st and June 30th every year ≒ Requires a Financial Audit ≒ Rep Offices: deadline by 30th Apr (only require financial audit) ≒ Examination by 7 Chinese authorities ≒ Joint examination offers simpler process (14th Apr to 23rd May) Miss it twice License terminated ≒ Company Alterations Renewals Office Location Key Company Details ≒ Chief Rep, Board Chairman, Executive Director, and Supervisor ≒ Company Name, Investors, etc Increasing Registered Capital Expanding Business Scope Try not to miss the joint examination Simplifies work significantly The JLJ Group All Rights Reserved - July 22, 2010 22
  • 23. China by the Numbers "FDI U#lized (USD Billion)" 100 90 80 70 60 50 40 30 20 10 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 FDI in 2009: 90.0bn -2.6% decrease over 2008 Source: National Bureau of Statistics/USCBC The JLJ Group All Rights Reserved - July 22, 2010 23
  • 24. China by the Numbers FDI By Investment Vehicle WFOE EJV CJV 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: National Bureau of Statistics/USCBC The JLJ Group All Rights Reserved - July 22, 2010 24