Ministry of Commerce, Issues Relevant to Foreign-invested Enterprises Applying for an Extension Opinion

Issued: November 11 2004

Main contents: Where a foreign-invested enterprise applies for an extension of its term of business later than the stipulated period (180 days before expiry of an enterprise's term of business), the examination and approval authority may: (1) accept to handle the application if it is submitted 30 days (inclusive) before expiry of the term of business; and shall (2) refuse the handling of applications submitted within 30 days of expiry of the enterprise's term of business or thereafter, unless due to an event of force majeure (Section Two). Applications for an extension shall meet the following conditions: (1) all investors shall unanimously consent to the extension of business term upon expiry; (2) a resolution of the board of directors of the enterprise consents to the extension of business term upon expiry; and (3) it complies with the laws, regulations and industry policies relating to utilization of foreign investment at the time the application is submitted (Section Three).
Related legislation: PRC Sino-foreign Equity Joint Venture Law (2nd Revision), Mar 15 2001, CLP 2001 No.3 p5; PRC Sino-foreign Co-operative 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 and PRC Administrative Licensing Law