Ministry of Commerce and State Administration of Foreign Exchange, Circular on Further Improving Relevant Administrative Measures on Foreign-invested Companies with an Investment Nature

商务部、外汇局关于进一步完善外商投资性公司有关管理措施的通知

February 07, 2012 | BY

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Lawful renminbi income may be used directly for domestic investment.

Clp Reference: 2300/11.12.08 Promulgated: 2011-12-08

Main contents: Domestic loans taken out by foreign-invested companies with an investment nature may not be used for domestic re-investment (Article 2).

A foreign-invested company with an investment nature may, subject to the approval of the foreign exchange bureau of the place where it is located, directly use renminbi profits derived in China and lawful renminbi income derived from the recovery of investments, liquidation, equity transfers and capital reductions to make domestic investments. Foreign investors may also make domestic investments after contributing the aforementioned lawful income to the registered capital (or a capital increase) of a company with an investment nature (Article 3).

Related legislation: Circular on the Operating Guidelines for Issues Relevant to Requests for Confirmation of Capital Verification Required in the Re-investment of Foreign-invested Companies with an Investment Nature, Mar 29 2011, CLP 2011 No.7 p.46

clp reference:2300/11.12.08promulgated:2011-12-08

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