Legislation roundup: FDI Provisions, immigration and insurance administration
May 16, 2013 | BY
clpstaff &clp articles &SAFE has released Provisions easing forex controls over foreign direct investment. The Legislative Affairs Office of the State Council has issued Regulations over the exit and entry of foreigners and the CIRC has produced Measures for the scopes of business of insurance companies
Foreign exchange
State Administration of Foreign Exchange, Provisions for the Foreign Exchange Control in Connection with Direct Investment in China by Foreign Investors
SAFE further streamlines the foreign exchange procedures for establishment of foreign-invested enterprises. The Provisions remove the pre-approval requirement of most of the common foreign exchange transactions. Banks mainly rely on the information registered with the State Administration of Foreign Exchange and its branches to carry out cross-border receipts and payments and exchange conversion for enterprises.
See the full translation.
Further reading
Circular on Further Improving and Revising the Foreign Exchange Control Policy on Direct Investment
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Immigration
Legislative Affairs Office of the State Council, PRC Exit-entry Administration Regulations for Foreigners (Draft for Comments)
The Draft suggests new types of Chinese visas:
(1) M Visa for business purposes (while F Visa is now just for non-business visits);
(2) R1 and R2 Visas for foreign senior management personnel; and
(3) S Visa for purposes of marriage, inheritance, adoption and receipt of medical services.
See the digest for more details.
Further reading
Cracking down on illegal employment
Insurance
China Insurance Regulatory Commission, Measures for the Administration of the Scopes of Business of Insurance Companies by Level
The Measures divide the businesses of insurance companies into basic businesses and extended businesses. New property or personal insurance companies may only apply for basic businesses. With minimum registered capital of Rmb200 million, they may apply for one type of basic business. An additional type of basic business would require at least Rmb200 million more of registered capital.
See the digest for more details.
Further reading
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