Which authority is competent for the approval and filing procedure of foreign investments?
MOFCOM is in charge of approval for restricted foreign investment and record-filing of permitted and encouraged foreign investment.
SAMR is in charge of corporate registration after approval or record-filing by MOFCOM has been completed.
With the new record-filing procedure for foreign investments in encouraged or permitted sectors implemented on October 1, 2016, the incorporation process of an FIE has been considerably accelerated. The previous approval process by MOFCOM was simplified into the record-filing process for encouraged and permitted foreign investment. However, MOFCOM’s approval is still required for foreign investments in the sectors on the Negative List.
Besides, foreign investments in certain industries which are related to the national economy or security may be subject to approval by the National Development and Reform Commission (NDRC) or National Security Review. Foreign investment in certain specific industries may be subject to approval by specific ministries or administrations, such as architecture and construction, publication, telecommunication, etc. For FIEs in manufacturing sector, an Environment Impact Assessment Report shall be submitted to and approved by the Environmental Protection Bureau upon the issuance of business license.
What is the role of MOFCOM?
MOFCOM will verify whether the foreign investment is in compliance with regulations, and especially with the Foreign Investment Catalogue.
How long does it take to get approval or complete filing with MOFCOM?
MOFCOM will issue its decision approximately within 10 days upon application, with a possible extension depending on the complexity of the investment project.
-> This article may also be of interest to you : Foreign Investment in China – Procedure for Establishment of FIE
To know more, download our legal handbooks related to Foreign Investment in China …
Incubators and accelerators
During recent years, incubators and accelerators became buzzwords with entrepreneurs who are looking for ways to start a business from scratch. The numbers of these startup support facilities in China... View Article
Crowdfunding options for startups
The technological advancements in recent years have allowed startups and established companies to launch and expand their businesses through attracting financing from private individuals and institutional investors in the form... View Article
Mergers & Acquisition in China: How to decide between Asset deal or Equity deal?
Equity deal: What are the pros and cons? Pros • Acquiring an operational business: acquiring equity does not require numerous separate approvals of each individual asset because the title of... View Article