Tag Archive Chinese

Legalization Process in China Streamlined After Country Adopts Hague Apostille Certification

April 9, 2024 Comments Off on Legalization Process in China Streamlined After Country Adopts Hague Apostille Certification By The Incorp China Team
With China’s adoption of the Apostille Convention, the process of certifying legal documents from fellow Convention members has been made simplified, more affordable, and much faster File photo: Ascannio, ShutterStock.com, licensed.
With China’s adoption of the Apostille Convention, the process of certifying legal documents from fellow Convention members has been made simplified, more affordable, and much faster File photo: Ascannio, ShutterStock.com, licensed.

PALM BEACH, FL – On November 7, 2023, the People’s Republic of China effectively replaced their prior legalization process for cross-border documents by officially adopting the Apostille Convention of the Hague Conference on Private International Law; this event came to be after Beijing previously agreed to the Convention in March of that same year, joining 126 other contracting countries.

The Apostille Convention of the Hague Conference on Private International Law – also known as the Convention of 5 October 1961 Abolishing the Requirement of Legalization for Foreign Public Documents, or simply the Apostille Convention – is an international treaty drafted by the Hague Conference on Private International Law (HCCH). It’s intended use is to greatly simplify and streamline the procedure in which a document that is issued by one of the countries contracted with the Convention can be certified for legal purposes when dealing with other contracted countries.

When a document is internationally certified within the confines of the convention, it is known as an “apostle” or a “Hague apostle.” The effect is comparable to taking a document to a Notary Public and having it notarized; if the document represents a legal agreement between two countries contracted within the Convention, an apostle issued by the origin country is enough to officially certify the document for both parties, with the receiving country not needing to certify it further.

China had used legalization – also known as consular authentication – to certify cross-border documents for decades. Foreign-produced documents previously needed to be notarized and legalized at the Chinese Embassy or Chinese Consulate in order to be utilized in China, and the process was typically complicated, time consuming, and expensive; this had the detrimental effect of making it difficult for non-Chinese investors and companies to conduct business in China.

With China’s adoption of the Apostille Convention, the process of certifying legal documents from fellow Convention members – 126 countries as of March 2024, notably including the United States, the United Kingdom, and the Russian Federation among its members – has been made simplified, more affordable, and much faster; the typical turnaround time for the legalization process was as long as three months or more, whereas an apostle takes as little as 4-14 days to be certified.

By having contracted with the Convention, China no longer needs to legalize foreign documentation via embassies or consulates; this process has now been replaced by an apostille issued by the designated authority in the origin country that will be immediately recognized in the destination country.

As a result of China adopting the Apostille Convention, it has greatly increased its opportunities for foreign investment and business dealings with multiple power-player countries on an international stage.

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Shutting Down a Foreign Owned Entity in China – IncorpChina’s Visit to the Local Tax Bureau

July 13, 2017 Comments Off on Shutting Down a Foreign Owned Entity in China – IncorpChina’s Visit to the Local Tax Bureau By The Incorp China Team
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Last week, three Incorp China team members and the CEO, Robert Fisch, headed to the Shenzhen tax bureau to help one of our US clients on shuting down their entity in China. When shutting down a foreign company in China, the tax bureau has to issue a “notice of cancellation of tax registration”’ for the Foreign Trade & Economic Cooperation Bureau. This is a rather difficult and time intensive procedure: The company owner, or a representative thereof, has to physically visit the local tax bureau in order to fill out and hand in the requires paperwork. While some documents are in English, the majority of the procedure will necessarily be dealt with in Mandarin. This highly bureaucratic task involves dozens of different forms that are each tailored to the nature of your business as well as the reason for its closure.

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The New Fapiao Legislation Explained

July 5, 2017 Comments Off on The New Fapiao Legislation Explained By The Incorp China Team

Effective 1st July 2017, the State Administration of Taxation extended its requirements for fapiao issuance. All companies need to add their taxpayer identification number on all issued VAT tax invoices (fapiaos) in addition to the original information. The notice was given under the Taxation Notice No. 16 of 2017.. 16 of 2017.

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In China, Guanxi Can Open Many Doors – And Borders

June 26, 2017 Comments Off on In China, Guanxi Can Open Many Doors – And Borders By The Incorp China Team
Some life lessons are best conveyed through a story. This one is about never underestimating what power an extensive guanxi holds in China.

 

Guanxi is the mandarin term for the network, the connection people form privately and in business relation to one another over a long period of time. Other than in Western cultures, China doesn’t differentiate between personal and professional relationships. Upholding one’s ‘face’, one’s reputation, making new connections and maintaining them becomes an omnipresent necessity.

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