Interim Provisions on the Investment of Foreign-invested Companies in China
Interim Provisions on the Investment of Foreign-invested Companies in China
Interim Provisions on the Investment of Foreign-invested Companies in China
Order of the Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry [2000] No. 6
July 25, 2000
Here is to promulgate the Interim Provisions on Investment in China by Foreign Investment Enterprises jointly issued by the Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry and Commerce, which shall be implemented as of 1 September 2000.
Minister: Shi Guangsheng
Director: Wang Zhongfu.
Attached: Interim Provisions on Investment in China by Foreign Investment Enterprises
Article 1 For the purposes of regulating the investment activities of foreign investment enterprises ("FIEs"), these Provisions are formulated in accordance with the Company Law of the People's Republic of China ("the Company Law") and the relevant provisions of the laws and regulations concerning foreign investment.
Article 2 The investment in China by the FIEs herein refers to the activities of establishing enterprises through investment or purchasing equity interests of investors of other enterprises (hereinafter "Invested Companies") within the territory of China by Sino-foreign equity joint ventures, Sino-foreign contractual joint ventures, wholly foreign owned enterprises and joint stock limited companies with foreign investment in their own name, which are in the form of company with limited liability established by force of law in the territory of China.
In case any company in an investment nature established by foreign investors intends to invest within the territory, it shall go through the formalities according to the relevant state laws and regulations on foreign investment and the Interim Provisions on the Establishment of Companies in an Investment Nature by Foreign Investment.
In case foreign investors and the FIEs jointly invest within the territory of China, they shall go through the formalities according to the relevant state laws and regulations on foreign investment, whereby the ratio of the contributions by the foreign investors shall account for no less than 25% of the registered capital of the Invested Companies.
Article 3 Any FIE that intends to invest within the territory shall abide by the state laws and regulations.
Investment within the territory by the FIEs shall follow the provisions of the Provisional Provisions on Foreign Investment Guidelines and the Guiding Catalogues of Foreign Investment Industries by reference.
The FIEs are not permitted to invest in the fields in which foreign investment is prohibited.
Article 4 The Invested Company shall be a limited liability company or a joint stock limited company.
Article 5 The FIEs cannot invest until the following conditions are met:
1. Their registered capital has been fully paid in;
2.
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