State Administration for Industry and Commerce, Several Opinions on Fully Making Use of the Industry and Commerce Administrative Functions in Order to Better Serve the Development of Foreign-invested Enterprises
国家工商行政管理总局关于充分发挥工商行政管理职能作用进一步做好服务外商投资企业发展工作的若干意见
June 18, 2010 | BY
clpstaff &clp articles &SAIC issues policies to encourage more foreign investment.
Issued: May 7 2010
Main contents: The Opinions provide detailed rules for implementing the State Council, Several Opinions on Further Improving the Work on the Use of Foreign Investment:
(i) Further encourage the increase of investment by foreign investors:
(a) Companies with an investment nature established by foreign investors are encouraged to apply to establish enterprise groups. The parent company may use the word “Group” or “(Group)” in the enterprise name; and the subsidiary may include the name or abbreviation of the enterprise group in its own name. An investee company may include the name or abbreviation of the said group with the consent of the group's management body (Article 1).
(b) The capital increase of foreign-invested enterprises (FIEs) through conversion of creditor's rights will be vigorously supported (Article 2).
(c) Foreign investors to establish partnership enterprises will be vigorously encouraged (Article 3).
(d) Where an FIE applying for an extension of the time limit for capital contribution has made the first instalment of registered capital, has no record of violation of the law, and is unable to make capital contributions according to schedule due to temporary cash flow problems, the relevant authority shall carry out an amendment of registration for the time limit for capital contribution in a timely manner upon approval by the examination and approval department (Article 4).
(ii) Vigorously promote the improvement of the foreign investment structure:
(a) Wholly foreign-owned enterprises, and FIEs in which a foreign party has a controlling share, that bear a trade name of the foreign investor, have registered capital of Rmb30 million or more and engage in the modern service sector or high and new technology industry may insert the word “(China)” in the enterprise name (Article 5).
(b) The establishment of functional organisations (such as regional headquarters, research and development centres, procurement centres, financial management centres, settlement centres, and cost and profit accounting centres) by multinational corporations and investment in the service outsourcing industry by foreign investors will be vigorously supported (Article 6).
(c) The participation of foreign investors in the restructuring, reform, merger and re-organisation of domestic enterprises in the form of equity participation and acquisition will be vigorously supported (Article 9).
(iii) Focus on enhancing the capability to serve FIEs:
(a) The system of “examination and approval being done in one stage” will be thoroughly implemented, and the matters subject to examination and approval reduced. Registration of major foreign-invested projects confirmed by the central and local governments shall be handled in the following manners: advance interference, handling by dedicated personnel, tracking services and completion as soon as possible (Article 11).
(b) A sound registration model: “authorised registration + advance check and approval + online application” will be established (Article 12).
(c) Differentiated annual inspection of FIEs will be implemented (Article 16).
(iv) Create a sound market environment: Administrations for industry and commerce at the provincial level will be authorised to conduct examination and approval of foreign-invested advertising enterprises, and the development of FIEs that sell automobiles will be supported (Article 20).
(v) Accelerate the improvement of the system and mechanism for serving the development of FIEs: Delegation of the FIE check and approval authority and registration authority to administrations for industry and commerce will be vigorously supported in the central and western regions, and in state economic and technology development zones and high and new technology industry development zones with higher concentration of FIEs (Article 23).
Related legislation: State Council, Several Opinions on Further Improving the Work on the Use of Foreign Investment, Apr 6 2010, CLP 2010 No.4 p.43
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