Notice on Well Implementation of the "Administrative Measures for the Establishment of Partnership Business in China by Foreign Enterprises or Individuals"

Notice on Well Implementation of the "Administrative Measures for the Establishment of Partnership Business in China by Foreign Enterprises or Individuals"

Gong Shang Wai Qi Zi [2010] No.31

February 10, 2010

Industrial and commercial administrative bureaus at all levels as well as market regulatory bureaus of all provinces, autonomous regions, municipalities, cities specially designated in the state plan as well as sub-provincial cities:

The "Administrative Measures for the Establishment of Partnership Business in China By Foreign Enterprises or Individuals" (hereinafter referred to as the "Administrative Measures") has been promulgated in the Decree of the State Council No. 567 on 25 November 2009 and shall come into force as of 1 March 2010. The related matters to carrying out the "Administrative Measures" by the administrations for industry and commerce are hereby notified as follows in order to ensure the well implementation of the "Administrative Measures", effectively do a good job in registration and administration of partnership business established in China by foreign enterprises or individuals (hereinafter referred to as "foreign-funded partnership enterprises"), strengthen the supervision and administration of foreign-funded partnership enterprises, serve the sound development of foreign-funded partnership enterprises, and improve the quality to make use of foreign investment.

I. Unity of thinking and profoundly understanding the important significance of the promulgation and implementation of the "Administrative Measures"
The "Administrative Measures" is another important legislation exacted after the "Sino-Foreign Joint Venture Law", the "Sino-Foreign Cooperative Joint Venture Law", the "Foreign-funded Enterprises Law" and other laws and regulations governing foreign investment, its promulgation and implantation is of great significance to continue to promote China's reform and opening up, stabilize and expand the absorption of foreign capitals, maintain stable and rapid economic growth, and promote the transformation of economic development pattern.
1. The promulgation and implementation of the "Administrative Measures" is an important step to keep on pushing forward the reform and opening up, and stabilize and expand the absorption of foreign investment.
Since the reform and opening up, China has been actively absorbing foreign investment, resulting in industry upgrading and technological progressive as well as foreign-funded enterprises have become an important part of the national economy. In order to positively guide foreign investment, China has passed legislations in succession, allowing foreign investors to directly invest in China through the establishment of Sino-foreign joint ventures, Sino-foreign cooperative joint ventures as well as foreign-funded enterprises, which have effectively promoted the development of China's economy. The "Administrative Measures" allowing foreign enterprises or individuals to set up partnership business in the territory of China is a new way to intake foreign capitals via legislations in China's new opening up situation and an important step to keep on pushing forward the reform and opening up, stabilize and expand the absorption of foreign investment, which will help further enrich our ways to utilize foreign capitals, expand economic cooperation and technical exchange, improve the quality of using foreign capitals, and promote the transformation of economic development mode.
2. The promulgation and implementation of the Administrative Measures" is an important measure to keep on optimizing the foreign investment environment, and maintain the steady and rapid development of the economy.
Partnership is a form of business organizations. Compared to other forms of business organizations, it has the features to set up more easily and to manage more flexibly. The "Administrative Measures" stipulate based on the nature and characteristics of partnership enterprises that, to establish a partnership enterprise, foreign investors shall directly apply to the enterprise registration authority for the registration, which not only reduces the administrative examination and approval and simplify the related procedures, but also facilitates foreign enterprises or individuals to set up partnership business in China, further optimizes the foreign investment environment, and will play an active role to maintain the stable and rapid development of the economy.
3. Well implementation of the "Administrative Measures" is a new task for the administrative authorities of industry and commerce to fully perform their functions and further serve the sound development of foreign-funded enterprises.
Pursuant to the "Administrative Measures", to establish a foreign-funded partnership enterprise, the applicant shall submit an statement in line with the policies for foreign-funded industries. It is an important prevision to facilitate the enterprises registration authorities in judging and control whether the foreign-funded partnership enterprise proposed to be set up meet the related industry policies regarding foreign investment in the situation that the "Administrative Measures" had not stipulated the Ministry of Commerce shall take charge of the examination and registration of foreign-funded partnership enterprises, specifying that the enterprise registration authorities shall also have the duty to exam the industry policies regarding foreign investment in performing their functions of the registration of foreign-funded partnership enterprises, which is not only a great change to the procedures for the registration of foreign-funded partnership enterprises, but also a new task and new situation for the administrative authorities of industry and commerce to directly face the application for the establishment of foreign-funded partnership enterprises for the first time since carrying out the registration of foreign investment.
　　......