Supplementary Provisions on the Investment in, and Establishment of, Companies with an Investment Nature by Foreign Investors
关于外商投资举办投资性公司的补充规定
The Supplementary Provisions relaxes pre-requisite for foreign investment in the PRC, eligibility of investment companies being recognized as regional headquarters and foreign exchange control procedures.
(Promulgated by the Ministry of Commerce on May 26 2006 and effective as of July 1 2006.)
(商务部二零零六年五月二十六日公布，自二零零六年七月一日起施行。)
Order of MOFCOM [2006] No.3
商务部令 [2006] 第3号
With a view to further encouraging investment in China by multinational corporations and improving the functions of companies with an investment nature, we hereby supplement the Provisions on the Establishment of Companies with an Investment Nature by Foreign Business Entities (Order of MOFCOM [2004] No.22, hereinafter referred to as "Order No.22") promulgated by the Ministry of Commerce on November 17 2004 as follows:
为进一步鼓励跨国公司来华投资，完善投资性公司功能，现就商务部2004年11月17日发布的《关于举办外商投资性公司的规定》(商务部令[2004]第22号，以下简称“22号令”)作出如下补充规定：
1. Article 22 of Order No.22 is amended as follows, "A foreign investor must use a freely convertible currency, its renminbi profits made in China or lawful renminbi proceeds derived from such activities as an equity transfer, liquidation, etc. as its contribution to the registered capital of a company with an investment nature. A Chinese investor may make its capital contribution in renminbi. If the foreign investor is to use its lawful renminbi proceeds as its contribution to the registered capital of a company with an investment nature, it shall submit such relevant supporting documentation as its approval document for capital account related foreign exchange transactions for the reinvestment of domestic renminbi profits or other lawful renminbi proceeds, etc. and its tax payment vouchers. Within two years of the issue of the business licence, the capital contribution shall not be less than US$30 million and the remainder of the capital contribution to the registered capital shall be paid in full within five years of the date of issue of the business licence."
一、 将22号令第七条修改为：“外国投资者须以可自由兑换的华币或其在中国境内获得的人民币利润或因转股、清算等活动获得的人民币合法收益作为其向投资性公司注册资本的出资。中国投资者可以人民币出资。外国投资者以其人民币合法收益作为其向投资性公司注册资本出资的，应当提交外汇管理部门出具的境内人民币利润或其他人民币合法收益再投资的资本项目外汇业务核准件等相关証明文件及税务凭証。自营业执照签发之日起两年内出资应不低于三千万美元，注册资本中剩余部分出资应在营业执照签发之日起五年内缴清。”
2. Companies with an investment nature shall be permitted to contract for the services contracted out by overseas companies.
二、 允许投资性公司承接境外公司的股务外包业务。
3. Article 11 of Order No.22 is amended as follows:
三、 将22号令第十一条修改为：
"Companies with an investment nature which engage in the import and export of goods or technologies shall comply with the Ministry of Commerce, Measures for the Record Filing of Foreign Trade Operators; the procedures for export-related tax refunds in respect of the export products of a company with an investment nature may be carried out in accordance with relevant provisions;
“投资性公司从事货物进出口或者技朮进出口的，应符合商务部《对外贸易经营者备案登记办法》；投资性公司出口产品可按有关规定办理出口退税；
A company with an investment nature may sell in China through commission agency (other than auctions) or wholesale the merchandise it has imported and the merchandise that it has purchased in China; the sale of certain designated merchandise and retail and franchise sales shall comply with relevant provisions."
投资性公司可通过佣金代理(拍卖除外)、批发方式在国内销售其进口及在国内采购的商品；特殊商品及以零售和特许经营方式销售的，应符合相关规定。”
4. Companies with an investment nature shall be permitted to make strategic investments in listed companies in accordance with relevant state provisions. In such cases, companies with an investment nature shall be deemed overseas shareholders of companies limited by shares.
四、 允许投资性公司根据国家有关规定对上市公司进行战略投资，投资性公司应视为股份有限公司境外股东。
5. Before its investee enterprise comes on stream or commences production of a new product, a company with an investment nature that satisfies the relevant conditions of Article 15 of Order No.22 may, for the purpose of developing the market for the product or products, import the relevant product(s) for trial sale in China. Additionally, it may engage other enterprises in China to produce/process its products or those of its parent company and sell the same in China or abroad.
五、 符合22号令第十五条有关条件的投资性公司，在其所投资企业投产前或其所投资企业新产品投产前，为进行产品市场开发，可进口相关产品在国内试销；并可委托境内其他企业生产/加工其产品或其母公司产品并在国内外销售。
6. Article 16 of Order No.22 is deleted.
六、 删除22号令第十六条。
7. If a foreign investor uses its renminbi profits made in China or lawful renminbi proceeds derived from such activities as an equity transfer, liquidation, etc. as its contribution to the registered capital (or the capital increase) of a company with an investment nature, the company with an investment nature may use all or part of such portion of its registered capital to invest in and establish enterprises in China. An enterprise established by the company with an investment nature using the aforementioned registered capital may carry out relevant procedures for foreign exchange registration, and capital verification and confirmation for a foreign-invested enterprise with the foreign exchange control department of the place where it is located, on the strength of such documents as the approval document from the examination and approval authority for foreign-invested enterprises, its approval document for capital account related foreign exchange transactions issued by the foreign exchange control department approving the foreign investor's use of renminbi profits, or other lawful renminbi proceeds, to make its capital contribution to (or contribution to the capital increase of) the company with an investment nature, a written explanation issued by the company with an investment nature stating that the source of the renminbi capital contribution to its investee enterprise is the aforementioned registered capital, etc. and it shall not be required to again carry out the procedures for an approval document for capital account related foreign exchange transactions for a company with an investment nature that makes its domestic investment in renminbi.
七、 外国投资者以其在中国境内获得的人民币利润或因转股、清算等活动获得的人民币合法收益向投资性公司注册资本出资(或增资)，投资性公司可将该部分注册资本的全部或部分用于境内投资设立企业。投资性公司以上述注册资本所设企业凭外商投资企业审批机关的批准文件、外汇管理部门核准外国投资者以人民币利润或其他人民币合法收益向投资性公司出资(或增资)的资本项目外汇业务核准件、投资性公司出具的对所投资企业人民币出资来源于上述注册资本的书面说明等文件，即可向所在地外汇管理部门申请办理外商投资企业外汇登记及验资询証相关手续，无需再次办理投资性公司以人民币境内投资的资本项目外汇业务核准件。
A Sino-foreign equity joint venture company with an investment nature that uses that portion of its registered capital contributed by the Chinese investor to establish an enterprise in China shall not be required to carry out such foreign exchange control related procedures as those for foreign exchange registration of a foreign-invested enterprise, for registration of foreign capital and foreign exchange in respect of the receipt of foreign exchange from the equity transfer, for capital verification and confirmation or for registration of foreign capital and foreign exchange, etc. and may normally carry out capital verification procedures in accordance with the provisions for ordinary enterprises in China.
中外合资的投资性公司以来源于其中方投资者人民币出资的注册资本在境内设立企业，无需办理外商投资企业外汇登记、转股收汇外资外汇登记、验资询証及外资外汇登记等外汇管理相关手续，可按普通境内企业的有关规定正常办理验资手续。
8. Sub-item (i) of Item (2) of Article 22 of Order No.22 is amended as follows, "the businesses specified in Articles 10, 11 and 15 hereof".
八、 将22号令第二十二条(二)第1小项修改为：“本规定第十条、第十一条和第十五条所规定的业务”。
9. Subject to the approval of the Ministry of Commerce, companies with an investment nature recognized as regional headquarters shall be permitted to engage in operational leasing and financial leasing businesses.
九、 经商务部批准，允许被认定为地区总部的投资性公司从事经营性租凭和融资租赁业务。
10. Companies with an investment nature recognized as regional headquarters shall be permitted to engage enterprises in China to produce/process products and to sell them in China and abroad, and permitted to engage in entrusted processing trade business where all products are exported for sale abroad.
十、 允许被认定为地区总部的投资性公司委托境内其他企业生产/加工产品并在国内外销售，从事产品全部外销的委托加工贸易业务。
11. Subject to the approval of the foreign exchange control authority, a company with an investment nature that performs the function of a finance centre or fund management centre and is recognized as a regional headquarters may centrally manage the foreign exchange funds of its affiliates in China and may open offshore accounts with banks in China to centrally manage the foreign exchange funds of its overseas affiliates and those foreign exchange funds of its affiliates in China which, with the approval of the foreign exchange control authority, are used to extend loans abroad. Fund transactions between offshore accounts and domestic accounts shall be administered in line with the administration of cross-border fund transactions.
十一、 行使财务中心或者资金管理中心职能且被认定为地区总部的投资性公司，经外汇管理机关批准，可以对境内关联公司的外汇资金进行集中管理，也可以在境内银行开立离岸帐户集中管理境外关联公司外汇资金和境内关联公司经外汇管理机关批准用于境外放款的外汇资金。离岸帐户与境内其他帐户之间的资金往来，按照跨境资金往来管理。
12. Companies with an investment nature shall report on their investments, business and other such circumstances with the specified content, in the specified format and by the specified method to the Ministry of Commerce for the record by June 1 of each year and, as required by the Ministry of Commerce, submit relevant information in a timely manner. The Ministry of Commerce shall bear an obligation of confidentiality in respect of the information submitted by companies with an investment nature.
十二、 投资性公司应于每年6月1日前将上一年度投资、经营等情况，按照规定的内容、格式和方式报商务部备案，并应根据商务部要求及时报送相关信息。商务部对投资性公司上报的信息承担保密义务。
13. If a company with an investment nature fails to submit relevant information in accordance with the requirements of Article 12, the Ministry of Commerce will handle the matter in accordance with relevant provisions.
十三、 投资性公司未按第十二条要求报送相关信息的，商务部将按照有关规定处理。
14. These Provisions shall be effective as of July 1 2006. In the event of a discrepancy between Order No.22 and these Provisions, these Provisions shall prevail.
clp reference:2300/06.05.26prc reference:商务部令 [2006] 第3号promulgated:2006-05-26effective:2006-07-01十四、 本规定自2006年7月1日起施行。22号令与本规定不一致的，以本规定为准。
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