11、 Which businesses can foreign-invested enterprises deal in within commercial field?
12、 What’s the qualification for foreign-invested enterprises to deal in the wholesale trade? What is the procedure of examination and approval?
13、 What’s the qualification for foreign-invested enterprises to deal in retail trade? What is the procedure of examination and approval? What are the relevant privileged policies?
14、 What’s the qualification for foreign-invested enterprises to deal in chartered trade? What is the procedure of examination and approval?
15、 What’s the qualification for foreigners to invest or set up financial institutions in Shenzhen? What is the procedure of examination and approval?
16、 What’s the qualification for foreigners to invest or set up insurance companies in Shenzhen? What is the procedure of examination and approval?
17、 What’s the qualification for foreigners to invest in fund administration companies in Shenzhen? What is the procedure of examination and approval?
18、 What are the relevant policies for foreigners to invest road & transportation trade? What is the procedure of examination and approval?
19、 What’ the qualification for foreigners to invest logistics trade? What is the procedure of examination and approval?
20、 Shall foreigners be allowed to invest international ocean transportation trade?
21、 Shall foreigners be allowed to invest the civic public utility in Shenzhen?
22、 What is an investment company? What’s the qualification for setting up such a company?
23、 Which businesses can an investment company deal in?
24、 What is the procedure of establishing a foreign-invested enterprise?
25、 What are the necessary documents to be submitted for setting up a foreign investment enterprise?
26、 What are the necessary documents to be submitted for setting up a Chinese-foreign equity joint venture?
27、 What are the necessary documents to be submitted for setting up a Chinese-foreign contractual joint venture?
28、 What registration procedures shall a foreign invested enterprise go through after obtaining its business license?
29、 Where are the relevant governmental departments dealing with the projects with foreign investment?
30、 What is the regulation on the investment term for foreign-invested enterprises?
31、 What are the main forms of foreign-invested enterprises? What are the characteristics respectively?
32、 What are the regulations on the investment by both parties of equity or contractual joint ventures?
33、 What is the difference between a residence representative office and an ordinary enterprise? How to apply for the registration of a residence representative office?
34、 Under what conditions shall an enterprise take the alteration procedure? Where can the alteration procedure be accepted?
35、 What is the operating duration of a foreign investment enterprise?
36、 What are the regulations and requirements for a foreign investment enterprise to set up its branches? What’s the difference between a branch company and a subsidiary company?
37、 How can a foreign investment enterprise obtain the operating license for export and import?

19. Which businesses can foreign-invested enterprises deal in within commercial field?
Approved foreign-invested commercial enterprises may engage in the following one kind or several kinds of sales businesses with categories of goods operated noted in the contract or articles of association concerning the operating scope.
A、 Commission agency: Distribution agents, brokers, auctioneers or other wholesalers provide the charged distribution of others’ goods and related affiliated services on the basis of contract.
B、 Wholesale: It refers to the commodity distribution and related services to retailers, industrial, commercial or institutional clients or other wholesalers, including commodity wholesale, commission agency (auction not included), commodity export & import and other related businesses. Foreign-invested commercial enterprises are forbidden to deal in salt and tobacco businesses, permanently, and fertilizer, refined oil and crude oil businesses before December 11, 2006.
C、 Retail: It refers to the commodity distribution related services to individuals or groups at a fixed place or through TV, telephone, mail, internet, or automat, including commodity retail, import of self-support commodity, purchase & export of domestic products and other related businesses. Retailers are forbidden to deal in tobacco permanently and fertilizer before December 11, 2006;
D. Franchised Operation: It refers to grant others the right to use the trademark, trade name or operating mode through contract for reward or licensed operation charges. Foreign-invested commercial enterprises may grant others to set up shops under the form of licensed operation.
Commodity Circumscribed for Operation or with Special Requirements
A. Dealing in books, newspapers and periodicals shall conform to Provisions on Administration of Books, Newspapers and Periodicals Retails for Foreign-invested Enterprises.
B、Those dealing in gas station or refined oil retails shall have a stable supply channel of the refined oil and conform to the gas station construction layout with their management facility in compliance to the present national standard and stipulation of computation examination as well as requirement on fire prevention and environmental protection. The concrete means of implementation shall be formulated by the Ministry of Commerce as other stipulated.
C、 Those dealing in drugs shall conform to the national regulations concerning the administration of drug distribution. The concrete means of implementation shall be formulated by the Ministry of Commerce as other stipulated.
D、Those dealing in automobiles shall operate the business with the approved operating scope. The concrete means of implementation shall be formulated by the Ministry of Commerce as other stipulated.
E、Setup of agricultural byproducts or agricultural production material enterprises shall be unrestricted in aspects concerning region, stock ratio and investment amount.

Back to top

20. What’s the qualification for foreign-invested enterprises to deal in the wholesale trade? What is the procedure of examination and approval?
Requirements on the foreign-invested wholesale trading enterprises are:
A、Registration capital shall be no less than RMB 500,000.
B、In compliance to regulations concerning the registered capital and investment amount of foreign-invested enterprises.
C、Generally, the operating duration of a foreign investment enterprise shall be no more than 30 years.
Procedure of Examination and Approval
Application documents shall be submit to Shenzhen Bureau of Trade & Industry as stipulated, which, from the day when all the application documents are submitted, shall be examined and reported to the Ministry of Commerce in five working days. It is the Ministry of Commerce that shall make the final decision. Those approved shall be granted with The Certificate of Approval of Foreign-invested Enterprises, with which the foreign-invested enterprises shall go to register in Shenzhen Bureau of Industrial & Commercial Administration.

Back to top

21. What’s the qualification for foreign-invested enterprises to deal in retail trade? What is the procedure of examination and approval? What are the relevant privileged policies?
Requirements on the foreign-invested retail trading enterprises are:
A、Registration capital shall be no less than RMB 300,000.
B、In compliance to regulations concerning the registered capital and investment amount of foreign-invested enterprises.
C、 Generally, the operating duration of a foreign investment enterprise shall be no more than 30 years.
Procedure of Examination and Approval
Those that conform to the following conditions and the operating scope of which does not relate to TV, telephone, mail, internet, automat or commodity listed in the 17th and 18th terms of Measures for the Administration on Foreign Investment in Commercial Fields, shall be examined and approved by Guangdong Foreign Trade Economic Cooperation Bureau and put on records at the Ministry of Commerce. After the receipt of The Certificate of Approval of Foreign-invested Enterprises, registration shall be handled with Shenzhen Industrial & Commercial Administration.
The operating acreage of single shops shall be no more than 3,000 m2with the number of shops no more than 3. The total number of similar shops opened in China by foreign investors through the established foreign-invested enterprises shall be no more than 30. The operating acreage of single shops shall be no more than 300 m2with the number of shops no more than 30. The total number of similar shops opened in China by foreign investors through the established foreign-invested enterprises shall be no more than 300.
Privileged Policies
For the direct chain enterprises spanning districts in downtown Shenzhen, once examined and approved by municipal taxation authorities together with financial department, their headquarters may apply to Shenzhen Municipal Tax Bureau for a unified payment of the VAT and income tax.

Back to top

22. What’s the qualification for foreign-invested enterprises to deal in franchised operation? What is the procedure of examination and approval?
Franchising means that under certain contract, the franchiser has the right to grant the operating resources such as trademark, trade name and operating mode to the franchisee; while the franchisee shall deal in the trade under the unified operating system and pay some franchising fee to the franchiser.
A foreign-invested enterprises as franchiser shall be qualified as follows:
Enterprise or other economic institution legally established;
With the operating resources such as trademark, trade name and operating mode under its charge;
With the capability to provide the franchisee(s) with long-term operating instruction and training services;
Having at least two direct operating shops with an operating duration of or above of 1 year or built by its subsidiary company or holding company in China;
For the franchising requiring commodity supply by the franchiser, the franchiser shall have a stable, quality-promising commodity supply system and provide related services;
With good credit and no record of cheating by means of franchising;
Franchising is forbidden for businesses prohibited in the Guiding Catalogue of the Foreign-invested industries.
Examination and approval procedures
Foreign-invested enterprises engaging in commercial activities by franchising shall apply to the original examination and approval department for the operating scope thereof.
Upon approval, the applicants shall register with the industrial & commercial administration department for corporate registration alteration within one month after obtaining Certificate of Approval of Foreign-invested Enterprises re-issued by the examination & approval department.

Back to top

23. What’s the qualification for foreigners to invest or set up financial institutions in Shenzhen? What is the procedure of examination and approval?
Financial institutions include: Sole proprietorship banks, joint venture banks, foreign branch banks, sole proprietorship finance companies and joint venture finance companies.
For sole proprietorship banks and joint venture banks, the registered capital shall be no less than RMB 300 million or convertible currencies equivalent. For sole proprietorship finance companies and joint venture finance companies, the registered capital shall be no less than RMB 200 million or convertible currencies equivalent. The registered capital shall be paid-in capital.
Foreign branch banks shall be given an operating capital of no less than RMB 100 million or convertible currencies equivalent by their head banks unconditionally.
To establish a sole proprietorship bank or a sole proprietorship finance company, the applicant shall be qualified as follows:
The applicant shall be a financial institution.
The applicant shall have representative office(s) in China with an operating duration of or over two years;
The total assets of the applicant applying for the establishment shall be no less than USD10 billion by end of the preceding year;
The country or region where the applicant is from shall have complete financial supervision & administration system, and the applicant shall be under the effective supervision & administration of related authorities thereof;
The related authorities in the country or region where the applicant is from shall approve the application;
Other prudent conditions as stipulated by People’s Bank of China.
To establish a foreign branch bank, the applicant shall be qualified as follows:
The applicant shall have representative office(s) in China with an operating duration of two years or above;
The total assets of the applicant applying for the establishment shall be no less than USD 20 billion at the end of the preceding year, and the capital abundance rate shall be no lower than eight percent;
The country or region where the applicant is from shall have complete financial supervision & administration system, and the applicant shall be under the effective supervision & administration of related authorities thereof;
The related authorities in the country or region where the applicant is from shall approve the application;
Other prudent conditions as stipulated by People’s Bank of China.
To establish a joint venture bank or a joint venture finance company, the applicant shall be qualified as follows:
The foreign investor shall be a financial institution.
The foreign investor shall have representative office(s) in China;
The total assets of the foreign investor applying for the establishment shall be no less than USD 10 billion by end of the preceding year;
The country or region where the foreign investor is from shall have complete financial supervision & administration system, and the foreign investor shall be under the effective supervision & administration of related authorities thereof;
The related authorities in the country or region where the foreign investor is from shall approve the application;
Other prudent conditions as stipulated by People’s Bank of China.
Procedure of Examination and Approval
Make a written application to People’s Bank of China, if approved, the latter shall send the formal application form to the applicant.
Upon receipt of the formal application form, the applicant shall begin the preparation for establishment, and send the complete application form together with the following documents to People’s Bank of China for examination & approval and, if approved, the latter shall issue the financial business license;
With the financial business license, the applicant shall register with the industrial & commercial administration department and receive the operating license.

Back to top

24. What’s the qualification for foreigners to invest or set up insurance companies in Shenzhen? What is the procedure of examination and approval?
Foreign-invested insurance companies include: Joint venture insurance companies, sole proprietorship insurance companies and branches of foreign insurance companies.
For joint venture insurance companies and sole proprietorship insurance companies, the registered capital shall be no less than RMB 200 million or convertible currencies equivalent, with the lowest limitation equal to the actual capital. Foreign insurance companies shall invest with convertible currencies.
Branches of foreign insurance companies shall have an operating capital of no less than RMB 200 million or convertible currencies equivalent appropriated by their head banks unconditionally.
To apply for establishing a foreign-invested insurance company in China, the foreign insurance company shall be qualified as follows:
Over thirty years of engagement in insurance industry;
It shall have representative office(s) in China with an operating duration of two years or above;
The total assets of the foreign insurance company applying for the establishment shall be no less than USD 5 billion by end of the preceding year;
The country or region where the foreign insurance company is from shall have complete insurance supervision & administration system, and the foreign insurance company shall be under the effective supervision & administration of related authorities thereof.
It shall conform to the standard of solvency in the country or region where it is from;
The related authority in the country or region where it is from shall approve its application;
Other prudent conditions as stipulated by China Insurance Regulatory Commssion.
Procedure of Examination and Approval
Make a written application to China Insurance Regulatory Commission and, if approved, the latter shall send the formal application form to the applicant.
Upon receipt of the formal application form, the applicant shall begin the preparation for establishment, and send the complete application form together with the following documents to China Insurance Regulatory Commission for examination & approval, if approved, the latter shall issue the financial business license;
With the insurance business license, the applicant shall register at the industrial & commercial administration department and receive the operating license.

Back to top

25. What’s the qualification for foreigners to invest in fund administration companies in Shenzhen? What is the procedure of examination and approval?
For a Chinese-foreign equity fund management company, the foreign shareholder shall be qualified as follows:
The financial institution established and operated in compliance to the law of the state or region where it is from, with experience in financial asset management, stable finance, good standing and no record of being punished by supervision & administration institution or judicial department.
The state or region where it is from shall have complete securities law and supervision system, the securities supervision & administration institution thereof shall sign the Cooperation Memorandum of Securities Supervision & Administration with China Securities Regulatory Commission or other admissive institutions, and maintain the effective cooperation on supervision & administration.
The actual capital shall be no less than RMB 300 million or convertible currencies equivalent;
Other regulations as approved by the State Council and stipulated by China Securities Regulatory Commission;
For foreign investors in Chinese-foreign equity fund administration companies, the accumulative investment proportion or share proportion (including direct holding and indirect holding) shall not surpass the limit as in the commitment of China for the the opening & reform of the securities industry
Procedure of Examination and Approval
Application documents shall be submited as stipulated by China Securities Regulatory Commission and, if approved, the latter shall send the approval documents to the applicant.
Apply for Certificate of Approval of Foreign-invested Enterprises;
Application shall be submitted to the industrial & commercial administration for registration, and to receive Certificate of Qualification in Fund Administration from China Securities Regulatory Commission with the Operating License of Corporate Legal Person issued.

Back to top

26. What are the relevant policies for foreigners to invest road & transportation industry? What is the procedure of examination and approval?
Road & transportation industry includes: Passenger transportation, cargo transportation, cargo handling, loading & unloading, cargo storage and other affiliated services and automotive maintenance concerning road & transportation.
Foreigners are allowed to invest road & transportation industry in the forms as follows:
Invest in passenger transportation by the form of Chinese-foreign equity joint venture;
Invest in cargo transportation, cargo handling, loading & unloading, cargo storage and other affiliated services and automotive maintenance concerning road & transportation by the form of Chinese-foreign equity joint venture or Chinese-foreign contractual joint venture;
For the Chinese-foreign equity joint venture held by foreign investor and dealing in cargo transportation, cargo handling, loading & unloading, cargo storage and other affiliated services and automotive maintenance concerning road & transportation, the investment proportion of the foreign investor may reach seventy-five percent thereof.
Investors from Hong Kong and Macao shall be allowed to establish the sole proprietorship companies in China Mainland engaging in cargo transportation, and deal in the direct-train cargo transportation between Hong Kong, Macao and various inland provinces, cities or autonomous regions provided they have founded enterprise in China Mainland and got the permission for road & transportation operation.
Foreign investors engaging in passenger transportation shall also be qualified as follows:
Among the major investors, there shall be at least one party who has engaged in the passenger transportation for over 5 years in China;
The proportion of foreign investment shall be no higher than 49%;
50% of the corporate registered capital shall be used in the construction and reconstruction of the passenger transportation infrastructure;
Vehicles used thereof shall be buses of middle grade or above.
Generally, the operating duration of foreign-invested transportation companies shall be no more than twelve years. However, for those with over fifty percent investment used in the construction of infrastructure for passenger & cargo transportation, the operating duration may be as long as twenty years.
Procedure of Examination and Approval
Apply to Bureau of Communications of Shenzhen Municipality for project registration, and the latter shall make the preliminary examination and then submit it, together with the application documents of the applicant, to provincial traffic authority;
Upon receipt of the documents submitted, the provincial traffic authority shall give its opinion and then submit it, together with the application documents of the applicant, to the traffic authority directly under the State Council.
Upon receipt of the above-mentioned documents, the traffic authority directly under the State Council shall make final examination and approval and, if approved, the directive for project registration shall be granted;
Upon receipt of the directive, the applicant shall apply to the provincial foreign trade authority for Certificate of Approval of Foreign-invested Enterprises;
The provincial foreign trade authority shall make preliminary examination and then submit it, together with the application documents of the applicant, to the Ministry of Commerce or department authorized;
Upon receipt of the application documents, the Ministry of Commerce or its authorized department shall make a written decision, if approved, Certificate of Approval of Foreign-invested Enterprises shall be issued or modified.
Upon receipt of Certificate of Approval of Foreign-invested Enterprises, the applicant shall handle together with the directive on project registration the application for transportation operating license with the provincial traffic authority and make the industrial & commercial registration.

Back to top

27. What’ the qualification for foreigners to invest logistics trade? What is the procedure of examination and approval?
Foreign-invested logistic enterprises are the foreign-invested enterprises established by foreign investors in the form of Chinese-foreign equity joint ventures or Chinese-foreign contractual joint ventures, organically integrated in either the transportation, storage, loading & unloading, processing, packaging, distribution, information processing or export & import of the cargo, with the complete supply chain and capable to provide the clients with multi-functional, integrated services.
Foreign investors are allowed to invest in the international circulation logistics and the third party logistics by the form of Chinese-foreign equity joint ventures or Chinese-foreign contractual joint ventures.
Investors applying for establishing a foreign-investment enterprise shall be qualified as follows:
Among investors of the foreign-invested logistics enterprise planning to engage in the international circulation logistics, there shall be at least one party with outstanding operating results and experiences in either international trade, international cargo transportation or international cargo transportation agency, and that conforming to the above conditions shall be the biggest shareholder among Chinese or foreign investors;
Among investors of the foreign-invested logistics enterprise planning to engage in the third party logistics, there shall be at least one party with outstanding operating results and experiences in traffic transportation or logistics, and that conforming to the above conditions shall be the biggest shareholder among Chinese or foreign investors;
Established logistics enterprises with foreign investment shall be qualified as follows:
The registered capital shall be no less than USD 5 million;
For those engaging in the international circulation logistics, the proportion of foreign investment shall be no higher than fifty percent thereof;
With fixed operating location;
With the necessary operating facilities for the businesses involved.
Procedures to establish a foreign-invested logistics enterprise:
Application to Shenzhen Bureau of Trade & Industry, and the latter shall make preliminary examination and then submit to the Ministry of Commerce for approval on result of the examination;
Upon receipt of the application documents, the Ministry of Commerce shall make a written decision and, for application approved, Certificate of Approval of Foreign-invested Enterprises shall be issued.

Back to top

28. Shall foreigners be allowed to invest international ocean transportation trade?
International ocean transportation trade includes: International shipping transportation, international shipping agency, international shipping management, cargo loading & unloading, container station & yard and cargo storage of international ocean transportation as well as daily service for vessels;
As approved by the Ministry of Communications and the Ministry of Commerce, foreign investors shall be allowed to invest in international ocean transportation in the forms as follows:
Establishment of Chinese-foreign equity joint ventures or Chinese-foreign contractual joint ventures to deal in international shipping transportation, international shipping agency, international shipping management, cargo loading & unloading, container station & yard of international ocean transportation.
Establishment of Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures or exclusively foreign-invested enterprises to deal in cargo storage of international ocean transportation;
Establish Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures or exclusively foreign-invested enterprises to provide the daily services for vessels possessed or operated by the investors.
Service suppliers from Hong Kong and Macao shall be allowed to establish exclusively foreign-invested enterprises in China Mainland to engage in international shipping management, cargo storage, container station & yard of international ocean transportation and non-vessel-operating business, and establish sole proprietorship dock companies in China Mainland to provide the daily services such as canvass, B/L signing & delivering, freight settlement and service contract signing for vessels possessed or operated by investors.

Back to top

29. Shall foreigners be allowed to invest the civic public utilities in Shenzhen?
Shenzhen Municipal Government encourages social fund and oversea capital to engage in the construction of infrastructure and chartered management of public utility in the form of sole proprietorship, joint venture or cooperation.
Public utility shall adopt the mode of chartered management by bidding, recruiting or other manners as stipulated in law, statute or act. The chartered management right of certain public utility shall be granted to the qualified applicant fairly by issuing Letter of Attorney on the Chartered Management of Public Utilities in Shenzhen City as stipulated in Provisions of the Chartered Management of Public Utilities in Shenzhen City, Provisional Regulations on the Civic Public Utilities with Foreign Investment and Guidance Catalogue of Foreign-invested Industries.
The chartered management of public utilities shall above all prevent infringement to the public interest. The chartered operator shall ensure a general service that is continuing, safe, efficient, fair and of high quality and reasonable price.

Back to top

30. What is an investment company? What’s the qualification for setting up such a company?
An investment company is a company established by foreign investor either in sole proprietorship or in joint venture to engage in direct investment in China. The corporate form is limited company. Applying for establishing an investment company shall conform to the conditions as follows:
In compliance to either of the following conditions:
? Foreign investor, if well in financial standing, having the necessary financial strength to establish an investment company, possessing a total asset of no less than USD 400 million in the preceding year before the application, and having already established a foreign-invested enterprise in China with the registered capital paid in over USD 10 million, shall be allowed to establish an investment company under the name of the subsidiary company it exclusively invested.
That well in financial standing, having the necessary financial strength to establish an investment company and having already established over 10 foreign-invested enterprises with the actual registered capital over US $30 million;
For the investment company to be established in joint venture, the Chinese investor shall be well in financial standing, have the necessary financial strength to establish an investment company and possess a total asset of no less than RMB 100 million in the preceding year before the application;
The registered asset of an investment company shall be no less than US $30 million.
Foreign investor applying to establish an investment company shall be a foreign company, enterprise or economic organization. If there are 2 foreign investors or above, there shall be at least one foreign investor with large shares conforming to Condition A.

Back to top

31. Which businesses can an investment company deal in?
After approval by the Ministry of Commerce, an investment company may, as per its actual operating demand in China, deal in the following businesses (some of which need a further application):
Invest legally in the fields open to foreign investment.
Provide the enterprise(s) invested with services as follows:
Assist in or surrogate for material purchase and product distribution for the enterprise(s) invested and provide after services;
Balance the foreign exchange among enterprises invested;
Provide services such as technical support, staff training and personnel management, etc.
Assist the enterprise(s) invested to seek for loan and reference;
Provide financial support to the enterprise(s) invested;
Provide the enterprise(s) invested with comprehensive services such as transportation and storage, etc.
Provide operational tenancy of machinery and office facilities, or establish a tenancy company legally;
Set up science & technology development center or department to engage in R & D of new products and new technologies, attorn the results and provide related technical services;
Provide counseling for its investors and marketing information and investment policies for its interrelated companies;
Carry on service outsourcing business consigned by its parent company and interrelated companies;
Export domestic goods by means of agency, distribution or setting up export purchase organization (inside organization included), and transact tax reimbursement as per related stipulations;
Provide after services for its imported products
Participate in oversea project contracting of Chinese enterprises with overseas contracting license.
An investment company is forbidden to take part in direct production.
That Certified as HQ of MNC, besides the above-mentioned businesses, can deal in the following businesses (some of which need a further application):
Import and distribute (retail not included) the products of MNCs and the interrelated companies held by it;
Import raw materials, accessories and parts necessary to the maintenance services for the products of MNCs and its invested enterprise(s);
Carry on service outsourcing business of enterprises both home and overseas;
Engage in logistics distribution service;
Set up financial company to provide related financial services for investment company and the enterprise(s) invested;
Engage in overseas project contracting and overseas investment; set up financing tenancy company and provide related services;
Entrust other enterprises in China to produce/process its products or those of its parent company and sell them home and abroad;

Back to top

32. What’s the procedure of establishing a foreign-invested enterprise?
Projects that are encouraged or permitted with the total investment (including additional investment) of US $100 million or above, prohibited with the total investment of US $50 million or above as stipulated in Guidance Catalogue of Foreign-invested Industries, or subject to the examination & approval by related national departments, shall be reported by Shenzhen Development & Reform Bureau/Shenzhen Bureau of Trade & Industry to relevant national departments for approval;
Newly-established foreign-invested projects, if conforming to the industrial policy of Shenzhen Municipality, encouraged or permitted in Guidance Catalogue of Foreign-invested Industries and with the total investment of less than US $30 million (US $30 million not included), shall be examined and approved by foreign trade authorities in corresponding districts, and put on records at Shenzhen Bureau of Trade & Industry;
Projects in service trade or those subject to integration, coordination and balancing of authorities in corresponding industries for special operation and domination, shall be still examined and approved by Shenzhen Bureau of Trade & Industry;
Feasibility report, together with contract and articles of association, shall be submitted to authority for examination and approval, and the latter shall coordinate related departments for joint-examination;
Hanlding formalities with other relevant departments for registrations after receiving Certificate of Approval and the Business License issued by the industrial & commercial administration;
Investors can either handle registrations at related departments of the district and municipal levels directly or under the agency of designated agents.

33. What are the necessary documents to be submitted for setting up a foreign investment enterprise?
Requisition for establishing a foreign-invested enterprise (one original paper signed and sealed by investors);
Feasibility report (original paper in triplicate, signed and sealed by investors);
Articles of Association of foreign-invested enterprise (original paper in quadruplicate, signed and sealed by investors);
List of legal representatives (or candidates of the future board of directors) of foreign-invested enterprise (one original paper);
ID document of foreign investors or operation identification document (one copy) and credit certificate (one original);
Letter of Name Approval drawn by industrial & commercial administration (one copy);
Requisition of Pre-tax Code for National Organizations and Agencies (first page);
Completed and submitted Counterfoil of Certificate of Approval for Foreign-invested Enterprises (including Chinese in Taiwan, Hong Kong and Macao) (one copy);
For environmental-related projects, submit Letter of Directive on Environment Protection drawn by environment protection authorities (one original and one copy);
Documents in Item A and C shall be written in Chinese, while documents in Item B, D and E may be written in foreign language with Chinese translation attached. If two or more foreign investors jointly apply for the establishment of a foreign-capital enterprise, they shall submit a copy of the contract between them two to the examining and approving authority for record.

Back to top

34. What are the necessary documents to be submitted for setting up a Chinese-foreign equity joint venture?
Requisition for establishing a equity joint venture (1 original, signed and sealed by related parties);
Feasibility report jointly compiled by related parties (original paper in triplicate, signed and sealed by related parties);
Contract and constitution of the equity joint venture signed by representatives authorized by related parties (original paper in quadruplicate for each, signed and sealed by related parties);
Operation identification document of related parties (Business License or Registration Certificate) (1 copy for each, business license of Chinese corporate legal person shall be sealed in cachet, while the foreign investor, if being a natural person, shall provide the ID document);
List of candidates for the future board chairman, deputy board chairman and directors designated by related parties (one original paper)
Letter of Name Approval drawn by industrial & commercial administration (one copy);
Requisition of Pre-tax Code for National Organizations and Agencies (first page);
Completed and submitted Counterfoil of Certificate of Approval for Foreign-invested Enterprises (including Chinese in Taiwan, Hong Kong and Macao) (one copy);
For environmental-related projects, submit Letter of Directive on Environment Protection drawn by environment protection authorities (one original and one copy).
The aforementioned documents shall be submitted in Chinese except those provided by foreign investors in Item 4 , while documents in Item 2, 3 and 5 may be submitted in the foreign language agreed by related parties at the same time.

Back to top

35. What are the necessary documents to be submitted for setting up a Chinese-foreign contractual joint venture?
Letter of proposal for establishing a contractual joint venture (one original paper, signed and sealed by related parties);
Feasibility report jointly compiled by related parties (original paper in triplicate, signed and sealed by related parties);
Contract and constitution of the contractual joint venture signed by representatives authorized by related parties and sealed in cachet thereof (original paper in quadruplicate for each, signed and sealed by related parties);
Business Licenses or Registration Certificates of related parties (1 copy for each, business license of Chinese corporate legal person shall be sealed in cachet, while the foreign investor, if being a natural person, shall provide the ID document), financial reference and the valid certificate of legal representative (one original for each);
List of the candidates for the future board chairman, deputy board chairman and directors in the contractual joint venture or those for the future director, vice director and commissioners in the united administration committee negotiated by related parties (1 original paper);
Letter of Name Approval drawn by industrial & commercial administration (one copy);
Requisition of Pre-tax Code for National Organizations and Agencies (first page);
Completed and submitted Counterfoil of Certificate of Approval for Foreign-invested Enterprises (including Chinese in Taiwan, Hong Kong and Macao) (one copy);
For environmental-related projects, submit Letter of Directive on Environment Protection drawn by environment protection authorities (one original and one copy).
The aforementioned documents shall be submitted in Chinese except those provided by foreign investors in Item 4 , while documents in Item 2, 3 and 5 may be submitted in the foreign language agreed by related parties at the same time.

Back to top

36. What registration procedures shall a foreign-invested enterprise go through after receiving the business license?
The following procedures are generally necessary:
Seal Sculpturing
Applying to Foreign Exchange Administration Bureau for foreign exchange certificate
Open the foreign exchange and RMB account at bank
Tax registeration
Applying to Quality & Technology Supervision Bureau for code certificate
Registration with the customs
Go to Labor & Social Security Bureau for procedures of recruiting employees, employment of oversea staff and social insurance.

37. Where are the relevant governmental departments dealing with projects with foreign investment?

Department addresses and phone numbers:

38. What is the regulation on the investment contribution term for foreign-invested enterprises?
For that to be contributed one time as stipulated in the contract or articles of association, investors shall pay in the investment within 6 months from the day the business license is issued.
The foreign investor may contribute the investment by installments as stipulated in the contract or the articles of association. The first installment may not be less than fifteen percent of the total amount to be contributed by the foreign investor, and shall be made within ninety days from the day the business license is issued.
Time limit of investment by installment:
For those with a registered capital below USD 500,000 (including USD 500,000), investors shall finish the investment contribution within one year the day the business license is issued.
For those with a registered capital between USD 500,000 and USD 1 million (including USD 1 million), investors shall pay in the investment within eighteen months the day the business license is issued.
For those with a registered capital between USD 1 million and USD 3 million (including USD 3 million), investors shall pay in the investment within two years the day the business license is issued.
For those with a registered capital between USD 3 million and USD 10 million (including USD 10 million), investors shall pay in the investment within three years the day the business license is issued