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Rules Adjustment of Foreign Invested Enterprises in China



Rules Adjustment of Foreign Invested Enterprises in China

On 28 October 2015, The Ministry of Commerce released a Decision on Amending Some Rules and Regulatory Documents, which made some adjustments on foreign investment. And it will bring positive impact on domestic foreign investment. Some important adjustments are summarized as follows.

The adjustment of foreign investment enterprises’ set up rules
Foreign joint-stock company
1. Cancel the minimum registered capital of 30 million RMB and requirements of foreign capital shares of the company not less than 25%.
2. Cancel the requirement of the sponsor to pay up for the shares subscribed for by the sponsors at a time, which from the date of issuance of the certificate approval within 90 days.

Foreign-invested holding companies
1. The forms of foreign investment companies can be a limited liability company or a limited company.
2. Cancel the minimum registered capital of 30 million US dollars.
3. Cancel that the capital contribution shall be paid in within two years upon issuance of the business license.

Foreign venture capital enterprise
1.Cancel the minimum amount of capital that investors contribution to the total amount of investment.
2.Cancel the requirement of investment period of not more than 5 years.
3.Cancel the requirement of capital to ensure the registered capital of 10 million minimum dollars.

Foreign funded commercial enterprises
Cancel the requirement of existing foreign commercial enterprises add stores that need to pay additional registered capital.

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