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Administrative Measures On Foreign-Invested Leasing Industry

Original Language Title: 外商投资租赁业管理办法

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(Released February 3, 2005 by Ministry of Commerce 2005 5th as of March 5, 2005) first in order to promote the healthy development of foreign-invested leasing, regulating foreign investment leasing management, prevent management risks, in accordance with the People's Republic of China contract law, the People's Republic of China company law, the People's Republic of China Law on foreign-funded enterprises, the People's Republic of China Law on Sino-foreign joint ventures and the People's Republic of China on Sino-foreign co-operative enterprises and other relevant laws,
    Regulation, these measures are formulated.
    Article II foreign companies, enterprises and other economic organizations (hereinafter referred to as foreign investors) in the People's Republic of China territory, by Sino-foreign joint ventures, Chinese-foreign cooperative and foreign-owned establishment in the form of leasing, financial leasing business of foreign-funded enterprises, carrying out business activities, these measures shall apply.
    Third foreign investment leasing industry may take limited liability companies or limited form.
    For foreign-invested enterprises with foreign investment engaged in leasing leasing company; foreign-funded enterprises engaged in finance leasing business for foreign-invested finance leasing companies.
    Fourth foreign-invested leasing companies and foreign-funded financial leasing the company shall comply with People's Republic of China laws, regulations and the provisions of the regulations, their legitimate business activities and the legitimate rights and interests protected by the Chinese laws.
    Ministry of Commerce is leasing industry authorities and approval of foreign investment management Department.
    Fifth rental business in these measures refers to deliver the lessee to lessor rental property use, benefits, and rent charged to the lessee's business.
    Finance leasing business in these measures refers to the lessor according to the lessee of the seller, lease options, to the seller to purchase the leased property for use by the lessee, and charged to the lessee the rent of business.
    Foreign-funded financial leasing companies can provide direct lease, sublease, lease, leveraged leasing, principal leasing, joint tenancy and other forms to carry out financial leasing business.
    Sixth article this approach by said rental property including: (a) production equipment, and communications equipment, and medical equipment, and research equipment, and test detection equipment, and engineering mechanical equipment, and office equipment, various movable; (ii) aircraft, and car, and ship, various transport; (three) this article (a), and (ii) items by said movable and transport with of software, and technology, intangible assets, but with of intangible assets value shall not over rental property value of one-second.
    Article seventh foreign-invested leasing companies and foreign-funded financial leasing companies, foreign investors shall not be less than $ 5 million in total assets.
    Eighth foreign-invested leasing companies shall comply with the following conditions: (a) the registered capital in line with the relevant provisions of the Act, (ii) meet the registered capital and total investment of the enterprises with foreign investment provisions; (c) the limited liability companies with foreign investment in the form of leasing companies operating period is generally not more than 30 years.
    Nineth foreign-funded finance leasing companies shall comply with the following conditions: (a) the registered capital shall be no less than $ 10 million, (ii) a limited liability company with foreign investment in the form of financial leasing company's operating period normally not for more than 30 years, (iii) has the appropriate professionals, senior managers should have appropriate professional qualifications and at least three years of experience.
    Tenth article established foreign investment rental company and foreign investment financing rental company should to approval sector submitted following material: (a) applications; (ii) investment parties signed of feasibility research report; (three) contract, and articles (foreign-funded enterprises only submitted articles); (four) investment parties of Bank funding letter proved, and registered registration proved (copies), and statutory representative people ID Ming (copies); (five) investment parties by accountants firm audit of recently one years of audit report;
    (F) the list of Board members and investment directors appointed; (g) the qualifications of senior management, (VIII) the Enterprise name pre-approval notice issued by the administrative departments for industry and commerce; application company limited, also submit other materials required by the relevant provisions. 11th article established foreign investment rental company and foreign investment financing rental company, should according to following program handle: (a) established limited responsibility company form of foreign investment rental company, should by investors to intends established enterprise location of provincial business competent sector submitted this approach tenth article provides of all material, provincial business competent sector should since received all application material of day up 45 a days within made whether approved of decided, approved established of, issued foreign investment enterprise approved certificate, not approved of, Reasons shall be stated in writing. Provincial Commerce Department in approving foreign investment after the establishment of leasing companies approved file submitted to the Ministry of Commerce registered within 7 working days.
    Limited liability company form of leasing companies with foreign investment established in accordance with the relevant regulations. (B) the establishment of foreign-funded financial leasing companies, to the location of the enterprise to be established by the investors submit article tenth of the provincial Commerce authorities provided all the materials, provincial Commerce authorities to submit the application documents after the first trial, receipt of the complete application files within 15 working days of application documents and preliminary observations reported to the Ministry of Commerce.
    MOFCOM shall from the date of receipt of the complete application file 45 working days to make a decision on whether to approve, approve the establishment, the foreign invested Enterprise approval certificate issued shall not be approved, reasons shall be stated in writing.
    (C) has set up a foreign-invested enterprise applies to engage in the leasing business, shall comply with the conditions as provided herein and in accordance with this section (a), the procedures provided for, shall be altered corresponding scope.
    12th foreign-invested leasing companies and foreign-funded financial leasing companies should receive for foreign-invested enterprises within 30 working days from the date of the certificate of approval to the Administrative Department for industry and commerce registration.
    13th foreign-invested leasing companies may have the following services: (a) lease, (ii) to purchase the leased property at home and abroad; (c) the residual value of leased property and maintenance, (iv) other businesses approved by the approval authority.
    14th foreign-funded finance leasing companies can operate the following businesses: (a) financial leasing business, (ii) leasing business; (c) to purchase the leased property at home and abroad; (d) the residual value of leased property and maintenance; (v) lease transaction advisory and security; (vi) other businesses approved by the approval authority.
    15th according to the lessee's choice of foreign-funded financial leasing company, imports involving specific policies such as quotas, permits management of rental property, up to the lessee or leasing company in accordance with the relevant provisions of the formalities.
    Foreign investment leasing company rental property, according to existing regulations of importing equipment by enterprises with foreign investment. Article 16th for risk prevention, guarantee safety, foreign-funded financial leasing company's risk assets shall not exceed the total net assets of 10 times.
    Risk asset according to the company's total assets minus cash and bank deposits, Treasury bonds, and delegates the leased asset after the remaining assets to determine.
    Article 17th foreign-funded finance leasing companies should be submitted by March 31 of each year to the Ministry of Commerce last year business report and financial report of the previous year audited by an accounting firm. 18th China Association of enterprises with foreign investment Committee on foreign investment in the leasing industry the leasing industry implement self-regulation of industry organizations.
    To encourage foreign investment in leasing companies and foreign-funded financial leasing companies to join the Committee.
    19th foreign-invested leasing companies and foreign-funded financial leasing companies are in violation of Chinese laws, rules and regulations, in accordance with the relevant provisions.
    20th Hong Kong S.A.R., and Macau S.A.R., and Taiwan companies, enterprises and other economic organizations in the Mainland to establish foreign-invested leasing companies and foreign-funded financial leasing companies, in accordance with the measures implemented.
    21st article this way that refers to the provincial Commerce authorities of provinces, autonomous regions, municipalities, separately listed cities and Xinjiang production and construction Corps of the commercial administrative department.
    22nd article this way by the Ministry of Commerce is responsible for the interpretation. 23rd these measures shall come into force on March 5, 2005. The MOFTEC 2001 of 3rd order approval and interim measures for the administration of foreign-invested leasing companies abolished at the same time.