Mergers and Acquisitions FAQ's

• Is Foreign Direct Investment (FDI) on the increase in China?
• Aren't FDIs fraught with onerous legal requirements?
• What part does M & A play in modern China?
• Is a foreign invested enterprise (FIE) treated any differently than a domestic company?
• What is the main difference between a WFOE and a CJV?
• What is a FICLS?
• Is it possible to invest in China outside of these corporate structures?
• Would a merger or an acquisition (M&A) with an existing FIE avoid MOFTEC scrutiny?
• What are the merger and acquisition options for a foreign company hoping to enter the Chinese market?
• What are the legal documents that support M&A through Foreign Invested Enterprises (FIEs)?
• Who can apply for FIEs under these regulations?
• When can a FIE begin to invest onshore and what limits these investments?
• What are some of the problems involved with M&A with State Owned Enterprises (SOEs)?
• What are the chances of M&A with listed companies in the China stock market?
• What are the several ways in which mergers and acquisitions in the Chinese Market can take place?
• Given that mergers and acquisitions in China can take several forms, how should one structure one's business in the Chinese market?
• Does China have an anti-trust law wherein a foreign investor has to consider when entering into a merger and acquisition deal?
• Is it necessary to conduct a legal due-diligence exercise in a merger and acquisition transaction in China?
• What is the general tax consequence of a merger in China?
• What are the tax benefits of a merger?
• Are there any special requirements on the tax accounting of the post merger company?
• How about the tax holidays of the pre-merger company?
• What is the tax effect of the losses of any pre-merger company?
• If a foreign investment enterprise (FIE) has several branches in different localities, how would they pay tax?