Because of the intervention of company training consultants in Italy and the reciprocal agreements stipulated between Italy and China, the People’s Republic of China remains an excellent business partner. Despite being a single-party country, China joined the World Trade Organisation (WTO) some time ago and has opened up to the global market by promoting legislative (WFOE) changes that facilitate trade and openness to foreign investors.
Italy company incorporation. The advice of the company training consultant for the establishment of a Chinese company in Italy
The way a Chinese citizen, even if not resident in Italy, can make investments through company forms and secondary offices of his activity in Italy are described HERE in our a guide to do business in Italy.
Italy China reciprocity agreements studied by management consultants
To facilitate global trade and harmonies the different legal systems, the world’s countries have promoted reciprocity agreements between states with their business partners. Reciprocal Pacts are a codified set of conditions valid for both countries, through which the citizens of the subscribing countries have guaranteed the same commercial opportunities. In Italy, the Reciprocal agreements relate to the art. 16 of the preliminary provisions of the Italian Civil Code, which states: the foreigner is allowed to enjoy the civil rights granted to the Italian citizen, on condition of reciprocity and without prejudice to the provisions contained in special laws.
Basically, the objective of these agreements, which are the Reciprocal Agreements is:
- to guarantee reciprocity of treatment conditions for citizens of the acceding countries;
- to avoid double taxation;
- to prevent tax evasion.
Reciprocity agreements between Italy and the People’s Republic of China
Business training consultants in Italy evaluate the conditions and requirements to start a business in Italy by Chinese citizens and Italian citizens in China. The conditions are the subject of the Bilateral Treaty of January 28, 1985, whose ratification in Italy was authorised by law of March 3, 1987 n. 109 to which all consulting firms and corporate finance consulting offices in Italy refer to assist entrepreneurs who want to invest in Italy.
This Agreement sets out specific conditions and requirements to facilitate investments and commercial exchanges for the citizens of one country or the other and is applied in compliance with the laws and regulations of the country in which the investment or commercial exchange is to be carried out.
To establish holding companies or take on company positions
The existence and the verification by the company training consultancy firms in Italy allow Chinese citizens to establish a holding company in Italy with:
- Individuals, Chinese citizens, legally residing;
- Individuals, Chinese citizens, not legally residing;
- Company or Secondary Office of Companies of the People’s Republic of China.
To assume positions in companies by:
- Individuals, Chinese citizens, legally residing;
- Individuals, Chinese citizens, not legally residing accepted only if connected to the investment;
- Company of the People’s Republic of China or Secondary Office accepted only if connected to the investment.
Company forms invest in China. WFOE, Wholly Foreign Owned Entreprise
Foreign direct investments in China can be carried out in Joint Venture or with the establishment of a wholly foreign-owned company with the WFOE formula, Wholly Foreign Owned Entreprise. The WFOE company in China has progressively made the legislation for foreign investors to become more permissive. The Company Law of 1993, in force since January 1, 2006, contains the discipline that regulates the establishment of companies in China with the following company forms:
- Limited Liability Company (LLC), company which responds to social obligations only with its assets;
- One-Person Limited Liability Company, a limited liability company with sole shareholder;
- Joint Stock Company, a public limited company.
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