A mainland company refers to an onshore corporate entity incorporated and headquartered within mainland China.
Key Characteristics:
- Mainland companies are subject to Chinese corporate and commercial laws.
- Foreign ownership is limited to joint ventures with a Chinese partner in many sectors.
- Companies are regulated and taxed differently than offshore firms in China.
Example:
An American manufacturer formed a Sino-foreign joint venture with a Shanghai-based company to operate their mainland China supply chain operations.
Key Takeaways:
Understanding the distinctions between mainland and offshore China structures is important for foreign investors looking to participate in China’s domestic economy within the regulatory framework.oreign entities by ensuring adherence to local market rules and representation when needed.