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Q: JV agreements in China ( Answered,   1 Comment )
Question  
Subject: JV agreements in China
Category: Business and Money
Asked by: newyorkcwa-ga
List Price: $20.00
Posted: 21 Nov 2002 11:34 PST
Expires: 21 Dec 2002 11:34 PST
Question ID: 112072
We have been producing a executive conference in Shanghai for 8 years.
This conference is attended by delegates from Asia, Europe and
Americas. We have always worked with a partner company in Shanghai,
paying them a hefty fee. Essentially all they do is send invitation
letters to non-Chinese attendees so they can get entry Visas. Is it
still necessary for us to have a Chinese partner in order to hold this
conference? If not, how do we help our delegates obtain Visas?

Request for Question Clarification by fons-ga on 21 Nov 2002 16:17 PST
Hi Newyorkcwa,

Could you tell me what kind of industry/subjects your conference
covers?
We are talking about how many people that need a visa for what period
of time?
What is the position of your current partner: is it a government
agency, a state-owned but commercial enterprise?
How long in advance do you know who needs a visa?

Regards,

Fons
Answer  
Subject: Re: JV agreements in China
Answered By: fons-ga on 21 Nov 2002 22:50 PST
 
Hi Newyorkcwa,

I'm living in Shanghai and ran into a lawyer today of China's largest
laws firm King and Wood. I decided to ask him your question right
away.

Not surprisingly he advised to get a lawyer in, depending on how large
your business is. Let me tell you what his argument is.

Getting visas for China is no problem at all. Any legal Chinese
entity, a state-organization, a state-owned company or even any joint
venture can issue a statement, chop it with a red Chinese seal and
that is good enough to get a single entry visa at the Chinese
embassies or consulates who issue visas. This law firm issues those
statements for their clients, if they need it. If have talked to
hotels (all joint ventures) in the past who would do this for their
visitors if they have a problem in getting a visa.
There are other possibilities too: a tourist visa, and in Shanghai if
you stay for less than 48 hours you can get a visa at the airport.
Originally that was for visitors from 17 countries, but that number
might have expanded by now.
No reason to get legal advice here.

The real problem is going to be your local partner and that is where
you might need legal advice. Many of those local companies in China
survived by asking you a hefty fee for their services even if the
services themselves do not take that much time.
According to our assessment (but this is not de place to really give
you solid advice on that) your company operates in a legally
restricted industry in China, where you require a local partner. When
you are going to raise the visa issue with your local partner, he
might not be very happy with you. You might need to have another
partner in place, or prepare for a lot of legal trouble that might not
be worthwhile to bring up the issue.

Anyway: no problem to get a visa for your delegates, do watch out for
the relationship with your local partner.

Good luck,

Fons

Information on visa-free Shanghai
http://www.chinabiz.org/articles/show.asp?id=980

Law firm:
www.kingandwood.com

visa information'
http://www.traveldocs.com/cn/vr.htm

search strategy:
Google: China visa
www.chinabiz.org: china visa
Comments  
Subject: Re: JV agreements in China
From: highnoon-ga on 22 Nov 2002 00:52 PST
 
Have you check with the nearest Chinese Embassy?

I amcertain that travel agents that sell your attendde the air tickets
can obtain the visa for "tourist" visits.  I obtained my in 5 days in
Singapore.

=====
Of more interest to you and your speakers is this:

1.  Are they being paid to speak in China?
2.  Do you collect fee from the attenddes?

In Singapore, as a local company, the company will pay the necessary
taxes.
The speakers becuase they derive benefits (in term of payment) will
have to pay a withholding taxes via the conference organizers.  Travel
expenses, lodging are not taxed.  I do not know how China managed
this, but with their recent crack down on tax evasion, your operation
would make a juicy target !

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