Wednesday, 3 September 2014

China Foreign Investment Enterprise Establishment Procedures


If you would like to invest in China, first please investigate which place is the best for your business in China, then follow the steps below with the help of a professional local business consultant.

1. Project Establishment
Investors (or partners) should consult with the Foreign Economy & Trade Department first of all about the project and then apply to the Commercial & Industrial Administration for approval of enterprise appellation.

As for joint project with total investment below USD 3million and sole investment project with total investment below USD 30 million, investors should apply to the Foreign Economy &Trade Administration directly for approval. As for joint project with total investment above USD 3million and sole investment project with total investment above USD 30 million, the Development Planning Administration is responsible for approval of feasibility study report and the Foreign Economy &Trade Administration responsible for approval of its contract and charter as well. And the technology innovation project should be approved by the Foreign Economy &Trade Administration.

As for sole investment project with necessity to build up factory buildings by foreign investors, the Land Utilization Certificate issued by the Land & Resources Administration is required, which should be submitted to the Foreign Economy &Trade Administration for approval. As for environment pollution project, the Environment Impact Report must be stipulated by the Environment Protection Department, which should be submitted to the Foreign Economy &Trade Administration for approval.

2. Approval of contract and charter
Following contract and charter signature, investors should bring along all required documents to the Foreign Economy &Trade Administration for approval.

Documents under approval include as follows:
A. Application for foreign investment enterprise establishment filed by competent departments

B. Project related documents: contract, charter and feasibility study report required by joint & cooperative project; charter, feasibility report and application form required by sole investment project

C. Factory building or land utilization certificate

D. Enterprise appellation preliminary approval notification

E. Name list of the Board of Directors of Enterprise

F. Operation License from the Chinese party (photocopy)

G. Creditability Letter for the Chinese party provided by bank

H. Both parties' registration certificate (photocopy)

I. Commercial registration certificate of foreign party (photocopy)

J. Creditability Letter for the foreign party provided by bank

K. ID cards for legal representatives from both parties (photocopy)

3. Obtain the permit certificate
As soon as the investor receives the Enterprise Legal Person Code Notification issued by the Technology Supervision Administration of Changsha (or local city), the Foreign Economy &Trade Administration should issue the Permit Certificate that day to accept the applied project.

4. Handle the commercial & industrial registration procedures
Upon receiving the Permit Certificate, the investors should visit the Commercial & Industrial Administration to apply for the Operation License within 30 days, which should be issued within 3 workdays (30 workdays as set forth in the national laws and regulations) for foreign investment enterprise with complete documents. Otherwise than newly-added approval documents and permit certificates, documents required by approval are almost the same for different enterprises.

5. Apply for Confirmation
As for projects in accordance with taxation exemption conditions for imported equipments, apply for the Confirmation for Domestic or Foreign Projects Supported by the State from the Economy & Trade Committee of Hunan (or other provinces) , the Planning Committee of Hunan (or other provinces) or the Economy & Trade Department of Hunan (or other provinces) .

As for export project with 100% support, the Provincial Committee of Hunan (or other provinces)  assigns the Foreign Economy & Trade Administration to issue following documents listed below:

A. Application Form for Confirmation of Foreign Investment Project Supported by the State

B. Approval of exclusive contract or sole foreign investment project charter

C. Project contract or charter for sole foreign investment enterprise (photocopy)

D. Permit Certificate and Operation License (photocopy)

E. Imported equipments List of project

F. Description of Foreign Investment Enterprise's Business Scope

6. Foreign exchange registration and account setup

Within 45 days after obtaining the Operation License, the investors should visit the Foreign Exchange Control Administration for foreign exchange registration and then the appointed bank for foreign exchange account setup. As for required documents, refer to as follows:

A. Approved Document, Permit Certificate
B. Operation License
C. Signed documents involving this project
D. Legal Representative Code Certificate

7. Taxation Management
Within 30 days after completing the industrial & commercial registration, the investors should get through the taxation registration in the local branch of Taxation Administration. Documents required include as follows:

A. Approval Document
B. Operation License (photocopy)
C. Signed documents involving this project
D. Legal Representative Code Certificate
E. ID cards for legal representatives (photocopy)

8. Customs Registration
Get through the customs regulation procedures within half a year since the enterprise is approved to establish.

Documents required include as follows:
A. Approval Document
B. Permit Certificate (photocopy)
C. Signed documents involving this project
D. Operation License (photocopy)
E. Project Confirmation

 

 

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