In China, problems with a foreign entity’s business can occur suddenly and for a variety of reasons. Labor costs may increase, tax incentives can be removed, and the way in which foreign investment is treated in a particular industry can be altered. In addition, despite the vast scope that exists for profit, the China market can be a difficult one to conduct business in. A foreign company with a flawed market entry plan or the wrong staff in key positions is likely to incur substantial losses.
Decisive action is the most effective solution for companies encountering these kinds of problems in China. To restructure an under-performing business in China, de-registration and de-establishment is a common and, at times, correct course of action for a foreign entity to take, there are also a number of other available options that might better suit a company’s individual situation. These include temporary dormancy, business conversion, and company divestiture.
Beyond the financial challenges presented by liquidation in China, China tax laws, China labour laws and bureaucracy need to be navigated through. This means that compared to business practices in more legally robust markets, the process is not quite as simple as closing down an office, stores or factories.
Russell Brown OBE, LehmanBrown Managing Partner and Chairman of the Asia Turnaround & Transformation Association (“ATTA”) will present on How to Restructure an Under-performing Business in China from a tax perspective and present best practices to mitigate business risk in the restructuring phase.
More information and registration details can be found at the link below:
Time: 2016-01-27 | 14:00 – 17:00
Venue: The European Chamber Shanghai Office, Unit 2204
Address: 333 Huai Hai Middle Road, Shui On Plaza, Shanghai 333 淮海中路，瑞安广场
Fee: Members: 300 RMB |
Non Members: 600 RMB
14:00 to 14:30: Registration
14:30 to 14:40: Welcome Remarks
14:40 to 15:10: Ms. Vivian Mao, Senior Manager, Dezan Shira & Associates
15:10 to 15:25: Q&A Session
15:25 to 15:55: Mr. Russell Brown; Founder and Managing Partner LehmanBrown International Accountants
15:55 to 16:10: Q&A Session