Ministry of Commerce and State Administration of Foreign Exchange, Circular on Further Strengthening and Standardizing the Examination, Approval and Regulation of Direct Investment in Real Property by Foreign Investors

商务部、国家外汇管理局关于进一步加强、规范外商直接投资房地产业审批和监管的通知

July 02, 2007 | BY

clpstaff &clp articles &

Possession of the leasehold or property ownership is required before establishing a foreign-invested real property company.

Clp Reference: 4110/07.05.23 Promulgated: 2007-05-23

Issued: May 23 2007

Main Contents: A foreign investor that invests and engages in real property development and dealings shall comply with project company principles.

(1) If an application to establish a real property company is to be made, the leasehold, and real property and building ownership shall first be obtained or a preliminary grant/purchase agreement for the leasehold or real property title shall have been entered into with the land administration department or land developer/real property and building owner. If the foregoing requirements are not satisfied, the examination and approval department will not grant its approval.

(2) If an established foreign-invested enterprise is to additionally engage in real property development or dealings or if a foreign-invested real property enterprise is to engage in the development and dealing of a new real property project, it shall carry out the relevant procedures to increase its scope of business or expand the scale of its operations with the examination and approval department in accordance with relevant laws and regulations on foreign investment.

Full Analysis & Translation: See page 52

clp reference:4110/07.05.23prc reference:商资函 [2007] 50号promulgated:2007-05-23

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