The approval and filing procedure for foreign investment in china
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.
The following documents shall be submitted to MOFCOM and SAMR for incorporation of a WFOE:
- The Articles of Association, which define the organization and corporate governance of the company;
- Incorporation certificate of the shareholder;
- Shareholder’s decision or resolution on incorporation of a WFOE;
- Appointment letter for director(s), supervisor and general manager;
- Application forms; and
- Other documents may be required to be submitted by MOFCOM and/or SAMR
For a joint venture company, the Joint Venture Contract shall be included in the incorporation documents.
Issuance of the business license
Upon the approval certificate or filing record issued by MOFCOM and the issuance of business license by the competent SAMR, the FIE will be formally established under PRC law and can start to operate its activities except for post-approval and/or registration.
For incorporation of certain FIEs in manufacturing business, an environmental impact assessment report (EIA) must be established. It must concern on the construction of factory and process of manufacturing. It must be submitted to and approved by the Environmental Protection Bureau.
-> This article may also be of interest to you : Representative Offices – Investment Options in China
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