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Guidance on Examination & Approval of Enterprises with Foreign Investment

I . Authorization of examination and approval:

According to the state ongoing laws, the system of examination and approval for registration shall be implemented for the establishment of enterprises with foreign investment in a case by case manner. The total investment amount and project categories in Guideline Index of Industries with Foreign Investment are the major criterion for defining the authorization power of the central government and local governments.

  1. For the allowed and encouraged types of enterprises with foreign investment below US $ 30 million (excluding US $ 30 million, the same hereafter), the city, county or development zone has authorized right for the examination and approval;
  2. For the limited type of enterprises with foreign investment below US $ 50 million and projects of allowed and encouraged types with foreign investment between US $ 30 million to US $ 100 million, and for the allowed and encouraged types of enterprises established with newly added foreign investment below US $ 100 million, and for the limited type of enterprises established with newly added foreign investment below US $ 50 million, provincial international business department has authorized right for the examination and approval;
  3. For the limited types of projects over US $ 30 million , projects of allowed and encouraged types with foreign investment over 100 million, and and for the allowed and encouraged types of enterprises established with newly added foreign investment over 100 million, and for the limited type of enterprises established with newly added foreign investment over US $ 50 million, and those projects involving quota license or separate documented rules that require the examination and approval by the ministry, the Ministry of Commerce has authorized right for the examination and approval.

* See Guideline Index of Industries with Foreign Investment for the encouraged and limited types.

* Crop seeds and petroleum exploration; commercial business, advertisement, employment service bodies, telecommunication, cinema, printing, schools, medical care, railway and road transport, international freight agencies, vessel companies, construction and design, layer firms, accountant firms, lease companies, commodity inspection companies, finance, insurance and securities companies are subject to separate special regulations

* limited liability companies and investment companies require examination and approval of the Ministry of Commerce

II . Material for declaration:

  1. Application for establishment of the enterprise with foreign investment
  2. Certificate of name pre-registration (industrial and commercial sectors)
  3. Feasibility report (jointly funded enterprises or projects over US $30 million and special industries shall provide written replies of relevant authorities)
  4. Contract and articles of association (foreign funded enterprises need only provide the articles of association)
  5. Business practice proof and credit attestation of the Chinese and foreign parties
  6. Name list of the Board of Directors and commission letter of directors
  7. Necessary authorization files
  8. Other documents specified in the laws and regulatory rules
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