Ministry of Foreign Trade and Economic Cooperation, Ministry of Science and Technology and State Administration for Industry and Commerce, Establishment of Foreign-funded Venture Investment Enterprises Tentative Provisions

Promulgated: August 28 2001
Effective: September 1 2001
Applicability: Venture investment is defined as an investment method consisting of equity investment, principally in unlisted high- and new- technology enterprises, and the provision to such enterprises of start-up management services with the objective of obtaining gains in the form of capital appreciation (Article 3).

Main contents: The Provisions set forth the conditions that the foreign and Chinese investors must satisfy in order to establish a foreign-funded venture investment enterprise, the procedure for establishing such an enterprise, the types of business that such enterprise may or may not engage in, the requirements for the qualifications of the management personnel and for information disclosures as well as the exit mechanism for the investment.
Related legislation: PRC, Sino-foreign Equity Joint Venture Law (2nd Revision), Mar 15 2001, CLP 2001 No.3 p5; PRC, Sino-foreign Cooperative Joint Venture Law (Revised), Oct 31 2000, CLP 2000 No.10 p4; PRC, Wholly Foreign-owned Enterprise Law (Revised), Oct 31 2000, CLP 2000 No.10 p4; PRC, Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p21 and PRC, Administration of Enterprise Legal Person Registration Regulations, Jun 3 1988, CLP 1988 No.6 p11