Qianhai Company Registration Services
Hotline: 86-755-82147392, Email:info@citilinkia.com
Can a company whose percentage of foreign contribution is lower than 25% be treated as an Enterprise with Foreign Investment?
Yes, it can. The percentage of contribution from foreign investors within the registered capital of any Chinese-foreign Equity Joint Ventures (or any Enterprise with Foreign Investment under a Sino-foreign partnership) should not be lower than 25%. Unless otherwise stated under relevant laws and administrative regulations, should the percentage of contribution made by foreign investors in any enterprise fall below 25%, said enterprise must be examined, approved and registered pursuant to the prevailing registration procedures for establishing Enterprise with Foreign Investment .
A Foreign Investment Enterprise Approval Certificate with a remark indicating “the (company’s) percentage of foreign capital (is) under 25%” will be issued to enterprises which satisfy the examining and approval processes. Those successfully obtaining the registration shall receive a Foreign Investment Enterprise Operation License with a remark indicating “the (company’s) percentage of foreign capital (is) under 25%” after the “Type of Business”. Please refer to “the Notice concerning the Relevant Issues on Strengthening the Approval, Registration, Foreign Exchange Control and Taxation Administration of Foreign-funded Enterprises” (No. 575 [2002] Issued by the Department of Treaty and Law under the MOFTEC) for full details.
What is required to establish a Sino-foreign Joint-Venture Financial Leasing Company? Are there any mandatory qualifications for domestic-funded and foreign-funded shareholders?
Sino-foreign Joint-Venture Financial Leasing Company must have a registered capital greater than US$10 million and obtain a Certificate of Approval issued by the Economy, Trade and Information Commission. In the case of Sino-foreign Equity Joint Ventures, the proportion of foreign capital should be over 25%. For full details, please refer to the Measures for the Administration of Foreign-capital Lease Industry, order of the Ministry of Commerce, No.5 [2005].
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For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com.