Provisional Regulations of the Ministry of Foreign Trade and Economic Cooperation on the Establishment of Investment Companies by Foreign Investors
Provisional Regulations of the Ministry of Foreign Trade and Economic Cooperation on the Establishment of Investment Companies by Foreign Investors
Provisional Regulations of the Ministry of Foreign Trade and Economic Cooperation on the Establishment of Investment Companies by Foreign Investors
Order of the Ministry of Foreign Trade and Economic Cooperation[1995] No.4
April 4, 1995
In order to promote foreign investment in China and to introduce foreign advanced technology and managerial expertise, foreign investors are permitted to establish investment companies (hereinafter referred to as "investment company") in China in accordance with the Chinese laws and regulations governing foreign investment and these Regulations.
Article 1 For the purpose of these Regulations, the term "Investment Company" means a company that is engaged in direct investment and established by foreign investors in China in the form of either a wholly foreign owned enterprise or an equity joint venture with Chinese investors. The investment company shall take the form of a limited liability company.
Article 2 To apply for approval to establish an investment company, the following conditions shall be fulfilled:
1. (1) the foreign investor having a good credit and the economic strength necessary for the establishment of an investment company; the total amount of the investor's assets during the year preceding the application being no be less than US $ 400 million, and the investor having already established foreign-invested enterprise (s) within the territory of China; and the amount of the investor's actually paid-in capital contribution to the registered capital thereof exceeding US $ 10 million. Furthermore, more than three project proposals of the investor's intended investment projects have been approved;
(2) the foreign investor having a good credit and the economic strength necessary for the establishment of an investment company; the investor have already established more than 10 foreign-invested enterprises in the people's Republic of China which are engaged in production or infrastructure construction, and the total amount of the investor's actually paid-in capital contribution to the registered capital thereof exceeding US $ 30 million.
(2) In case the investment company is to be established in the form of an Chinese-foreign equity joint venture, the Chinese investor shall have good creditability and the economic strength necessary for the establishment of such company, and the total amount of the Chinese investor's assets shall not be less than RMB100 million.
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