Guidelines for Foreign Investment

Foreign investment company means foreign investors in China, by wholly-owned or joint ventures with Chinese investors, in form of establishing companies that engaged in direct investment or in form of a limited liability company.  The investment company shall not directly engage in production activities.

To apply for the establishment of an investment company, it is subject to the requirement of the proposed location of the provinces, the autonomous regions, municipality, or respective listed cities, its commerce department for approval, and the Ministry of Commerce.

 Application of foreign investors to establish an investment company.   It shall comply with the following conditions:-

(A)  1)   The foreign investors must with good credit in the year prior to the application, the investor's total assets is of not less than U.S. $ 400 million and the investment in the territory of that foreign-invested enterprises have been set up, the actual payment of the registered capital contribution is of more than USD 10 million , or ;
       2)    Foreign investors must be with good credit, the investor in China has established more than ten foreign-invested enterprises, the actual paid registered capital contribution are of over USD 30 million ;

(B)   By way of establishing a joint venture investment company, the Chinese investors should have good credit, in the year prior to the application, the investor's assets are of the amount for not less than RMB 100 million ;

(C)   An investment company with registered capital of not less than USD 30 million. The investment company with registered capital of not less than USD 30 million.   Its loan has been paid and it shall not exceed four times the amount of its registered capital.   Investment company with registered capital for not less than USD 100 million and its loan amount shall not exceed the amount of registered capital that has been paid by six times.   Investment company may due to operational needs, the loan amount may exceed the above rules or proposal, it shall reported to the Ministry of Commerce to seek for approval.

(D)   Applying for the establishment of foreign investors in the investment company shall be a foreign company, enterprise or economic organization, if the foreign investment is formed by two or more, which should, at least have a big stake which representing foreign investors in line with (A) of the convention.