Ministry of Commerce, Verification Matters Relevant to Investment in and Establishment of Enterprises Overseas Provisions

Promulgated: October 1 2004
Effective: as of date of promulgation
Interpreting authority: Ministry of Commerce
Applicability: For investment in and establishment of enterprises in the Hong Kong and Macao Special Administrative Regions by Mainland enterprises, verification shall be handled in accordance with the relevant provisions (Article 15). In case of a conflict between the Procedures and any previous administrative procedures, the Procedures shall prevail (Article 16).

Main contents: "Investment in and establishment of enterprises overseas" refers to establishment of enterprises or obtaining existing enterprise rights and interests such as ownership or management powers, etc. overseas by such means as new establishment (wholly owned enterprises, and equity or cooperative joint ventures), acquisitions, mergers, equity participation, capital injections or equity swaps (Article 3). The Ministry of Commerce is responsible for the verification of the investment in and establishment of enterprises overseas by domestic enterprises (with the exception of finance-type enterprises). The Ministry of Commerce commissions administrative departments in charge of commerce of the people's governments of all provinces, autonomous regions, municipalities directly under the central government and cities with independent development plans (hereafter, Provincial Level Departments in Charge of Commerce) to verify the investment in and establishment of enterprises in the countries listed in the appendix by enterprises other than those directly under the central government (Article 4). Investment in and establishment of enterprises overseas by foreign-invested enterprises shall be subject to the verification of the Ministry of Commerce if the foreign-invested enterprises were approved by the ministry, and subject to the verification of Provincial Level Departments in Charge of Commerce for the other foreign-invested enterprises. Specific requirements shall be separately provided by the Ministry of Commerce (Article 12).
Related legislation: PRC Administrative Licensing Law and State Council, Setting Administrative Licensing for Administrative Examination and Approval Requirements that Truly Have to be Retained Decision