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Procedures of Establshing Foreign-Invested Enterprises in Yunnan of China

SOURCE:DOINGBUSINESSINCHINA.ORG   TIME:2016-04-25

 

 Procedures of Establshing Foreign-Invested Enterprises in Yunnan of China

 
1.Examination and Approval Authorities

 
Under the current laws of the State, the establishment of foreign-invested enterprises should be authorized by the government item by item for examination approval, and registration. 
The size of the total investment and the project classification in the Foreign Investment Guide are the main basis of whether foreign-invested enterprises should be examined and approved by the central government or by the local government.
 
①The total investment of above USD 100 million (including USD 100 million) within the incentive and permitting categories.
 
②The total investment of above USD 50 million (including USD 50 million )
 within the restricting category should be authorized by the State Development and Reform Commission.
Then approved by the Ministry of Commerce. 
 
③The total investment above USD 500 million within the incentive and permitting categories.
 
④The total investment above USD 100 million within the restricting category should be authorized by the State Development and Reform Commission and the Ministry of Commerce.
Then report to the State Council for approval.
 
⑤The relevant departments of Yunnan provincial governments are in charge of the approval of the total investment below USD 100 million,within the incentive and permitting categories.
 
⑥The total investment below USD 50 million within the restricting category.
Then the relevant departments should report to the State Council and the competent departments for records.
 
 Foreign invested projects involving quotas and permits should first apply to the commercial sector for quotas and permits.
 
2.Procedures of Establishing
 
Foreign-Invested Enterprises
 
(1)Procedures for the Establishment of Foreign-invested Enterprises through Direct Registration
 
Application for the per-approval of the name application
for registration (the provincial industrial and commercial administration departments) and business license-receiving the approval certificate for foreign-invested enterprises-relevant registrations (industry and
commerce registration, tax registration, enterprise code registration, opening bank accounts, foreign exchange registration and customs registration)
 
(2) Procedures for the Establishment of Foreign-invested Enterprises through Approval
 
                                                                                        —by the approval for the project approval and the feasibility report
 
Chinese or foreign investors can choose and understand the business scope and credit conditions of their partners through various channels. 
 
After the confirmation of the cooperation intent, investors from the Chinese side compile the project proposal and the feasibility study report.
 
Then report to Yunnan Provincial Development and Reform Commission for approval.
 Meanwhile Chinese and foreign investors should apply to Yunnan Provincial Administration of Industry and Commerce for the registration of the enterprise name to protect the exclusive right to use the name and to prevent identical names.
 
               —The approval of contracts and articles of association, and the permission certificate for foreign-invested enterprises
 
After the approval of the project, Chinese investors should submit the contracts, statutes and other legal documents to the commerce departments:
     (Yunnan Provincial Department of Commerce or the management committee of development zones). 
The commerce departments should decide whether to approve within 90 days from receiving the feasibility study report, the contract, the articles of association and other documents.
 
 As to the application for the establishment of cooperative enterprises, the approval should be decided within 45 days. 
After the approval, the commerce departments will issue the permission certificate for foreign-invested enterprises.
                                                                                                                                                —Application for the business license
After receiving the permission certificate for foreign-invested enterprises, Chinese and foreign investors should register in Yunnan Provincial Industry and Commerce Administration within 30 days.
Then obtain the business license. The date of the business license is identical with the founding date of the joint (cooperative) venture.



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