Beijing Municipality, Administration of Investment in and Establishment of Enterprises and Institutions Overseas Procedures

Promulgated: November 17 2004
Effective: as of date of promulgation
Interpreting authority: Specific issues in enforcing these Procedures shall be interpreted by the Beijing Municipal Bureau of Commerce
Applicability: The Procedures apply to the investment in and establishment of non-financial enterprises and institutions (offices, etc.) overseas and in Hong Kong and Macao by all types of enterprises and other economic organizations within the municipal jurisdiction (Domestic Investment Entities) by such means as new establishment, takeover, merger, equity participation, capital injection and equity swap (Article 2).
In the event of a discrepancy between the Procedures and any previous administrative procedures, the Procedures shall prevail (Article 21).

Main contents: Application for overseas investment by Domestic Investment Entities shall comply with the conditions stated in Article 4. Article 5 concerns the application procedures for investment in and establishment of enterprises and institutions overseas and Article 10 for the establishment of enterprises and institutions in Hong Kong and Macao. Without the approval from the relevant departments, state-owned enterprises and enterprises with a state controlling interest shall not engage in such high risk businesses as real property, leasing, securities, foreign exchange, speculative stocks, futures investment, gold and gambling businesses (Article 17).
Related legislation: Verification Matters Relevant to Investment in and Establishment of Enterprises Overseas Provisions, Oct 1 2004, CLP 2004 No.9 p5; Verification Matters Concerning the Investment in and Establishment of Enterprises in the Hong Kong and Macao Special Administrative Regions by Mainland Enterprises Provisions, Aug 31 2004, CLP 2004 No.8 p10 and Beijing Municipality, Administration of the Examination and Approval of Overseas Investments Tentative Procedures