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Supplementary Provisions On The Foreign-Funded Investment Companies

Original Language Title: 关于外商投资举办投资性公司的补充规定

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(May 26, 2006 Commerce makes 2006 3rd, announced since July 1, 2006 up purposes) for further encourages multinational to China investment, perfect investment sex company function, now on Commerce November 17, 2004 released of on held foreign investment sex company of provides (Commerce makes [2004] 22nd,, following referred to "22nd, makes") made following added provides: a, and will 22nd, makes seventh article modified for: " Foreign investors shall be made in freely convertible currencies or currency obtained in China profit or for the transfer of stock, liquidation activities, such as the legitimate income of RMB as its contribution to the registered capital of the investment company's capital contribution. RMB investment by Chinese investors. Foreign investors with its legitimate income of RMB as its contribution to the registered capital of the company with an investment nature shall be submitted to the administration of Foreign Exchange issued by domestic currency profits or other legitimate income reinvested capital of RMB foreign exchange business of the project approval documentation and tax receipts. Investment within two years from the date of issuance of the business license shall be not less than 30 million dollars and the rest part of the registered capital shall be paid within five years from the date of issuance of the business license.
    "Two offshore companies, allow investment companies to undertake the service outsourcing business. Three, and will 22nd, makes 11th article modified for: "investment sex company engaged in goods import and export or technology import and export of, should meet commerce foreign trade operators record registration approach of provides; investment sex company export products can by about provides handle export rebate; investment sex company can through Commission agent (auction except), and wholesale way in domestic sales its imports and the in domestic procurement of commodity; special commodity and the to retail and franchise way sales of, should meet related provides.
    "Four, allowing investment company in accordance with State regulations on listed companies to make strategic investments, investment companies shall be regarded as foreign shareholders of the Corporation.
    Five and the 22nd to 15th on the conditions of the investment company, in its portfolio companies before put into production or its portfolio new products prior to their commissioning for product marketing, related products can be imported in the country to test and may also appoint other companies in production/processing of the products or their parent company's products and sales at home and abroad.
    Six articles, delete, 16th, 22nd. Seven, for his work in the territory of China by foreign investors to obtain RMB profit or for the transfer of stock, liquidation activities, such as the legitimate income of RMB registered capital contribution to investment company (or capital), the part of the registered capital of the investment company may be in whole or in part for domestic-invested enterprises. Investment sex company to above registered capital by set enterprise by foreign investment enterprise approval organ of approved file, and Exchange management sector approved foreign investors to Yuan profit or other Yuan legal returns to investment sex company funded (or increased funding) of capital project Exchange hold works approved pieces, and investment sex company issued of on by investment enterprise Yuan funded from above registered capital of written description, file, can to location Exchange management sector application handle foreign investment enterprise Exchange registration and the inspection funding polling card related procedures,
    No need to handle investment company approved by the investment of RMB capital account foreign exchange business.
    Sino-foreign joint venture investment company from which investors Yuan registered capital invested by enterprises established in the territory, there's no need for foreign exchange of foreign-invested enterprises registration, share transfer foreign exchange foreign exchange registration, inspection and forensics and foreign exchange registration procedures related to foreign exchange management, according to relevant provisions of ordinary domestic enterprises normal verification procedures.
    Eight, the 22nd, 22nd (b) 1th amendment as follows: "the provisions provided for in article tenth, 11th and 15th business."
    And approved by the Ministry of Commerce, allow to be identified as the regional headquarters of the investment company engaged in operating leasing and leasing business.
    Ten, allow to be identified as the regional headquarters of the investment company and other enterprises in production/processing products sold at home and abroad, all export products consigned processing trade business. Financial center or fund management center of the plenary, the exercise of functions and investment companies were identified as regional headquarters, approval by the Exchange administration agencies, centralized management of associated companies in foreign exchange funds or in domestic banks to open offshore accounts centrally managed foreign affiliates of foreign exchange funds and associated companies in exchange of the approval by the Exchange administration agencies for overseas loan funds.
    Offshore accounts and other accounts in the territory between the movement of funds, according to the cross-border movement of funds management. 12, investment companies should be made before June 1 of each year, the previous year investments, operating conditions, in accordance with the content, form and manner of Commerce record, according to the Department of Commerce requirements and submitted the relevant information in a timely manner.
    Department of Commerce investment company reporting obligation of confidentiality of information.
    13, 12th investment company is not required to submit relevant information, the Ministry of Commerce will be dealt in accordance with the relevant provisions. 14, these provisions come into force on July 1, 2006.
                                                                          22nd, inconsistent with this provision, is subject to this provision.