How to seize opportunities in the FTZs

如何把握自贸区的机遇

October 15, 2015 | BY

clpstaff &clp articles &

This article is from the Free Trade Zones chapter of the 2015 Annual Review and is available for download here.Chenguang Ma of Co-effort Law…

This article is from the Free Trade Zones chapter of the 2015 Annual Review and is available for download here.


Chenguang Ma of Co-effort Law Firm highlights the unique benefits of investing in the four FTZs as well as the process of setting up, tax incentives and the most popular industries in the zones

1. How does the combined 2015 Negative List compare with the 2014 Shanghai FTZ Negative List?

The 2015 Negative List contains a total of 15 categories and 122 special administrative measures. The 2015 Negative List reflects, to a certain extent, the contents of the 2015 Foreign Investment Industrial Guidance Catalogue that restrict or prohibit foreign investment, is greater in the extent of its opening to foreign investment and in terms of scope of application, applies to the four Free Trade Zones (FTZs), reduces unnecessary specific regulatory measures and moves instead toward increasing and emphasising the regulatory principles for key sectors. It is clearer, more transparent and practicable.

2. What are the unique features and investment opportunities of each Free Trade Zone?

The four FTZs vary in terms of their functional orientations and investment opportunities, more specifically:

(1) the Shanghai FTZ was the first to be established, has blazed trails such as the Negative List administrative model and will focus on developing service industries such as financial services, shipping services and professional services;

(2) the Tianjin FTZ, as a key node in the China-Mongolia-Russia economic corridor, will rely on its Eurasian land bridge linking function to drive the synergistic development of Beijing, Tianjin and Hebei, with the focus of developing modern service industry sectors such as high-end manufacturing, lease financing and financial innovation;

(3) the Fujian FTZ is the core area of the maritime silk road and a frontline base for investment and trade liberalisation with Taiwan, with its focus of development being the leisure and tourism industry and the modern service industry; and

(4) the Guangdong FTZ, as an important hub on the maritime silk road, will rely on Hong Kong and Macau and focus on developing the high-end leisure and tourism industry, production type service industry and shipping and logistics industry.

3. What is the procedure for establishing a company in the Free Trade Zones? What documents are required?

Looking at the initial experience of the Shanghai FTZ, the four FTZs have now essentially established an online application, one-stop acceptance procedure for the establishment of enterprises in the zones. Taking the establishment of companies in the Shanghai FTZ as an example, the basic procedure for an application for establishment is as set forth below:

(1) determine the company's registered address and proceed to the FTZ-designated acceptance point or the municipal administration for industry and commerce to apply for preliminary approval of the enterprise name and secure the enterprise name preliminary approval notice;

(2) to establish a foreign-invested company, it is necessary to log on to the “FTZ investment handling through train” of the “中國.上海” web portal or the web portal of the China (Shanghai) Pilot Free Trade Zone to carry out a comparison with the Negative List and fill out the relevant online forms (http://wz.investment.gov.cn/SFI/bsRecordAction.do?method=bsRecordOneNew&stEntType=GS);

(3) proceed to the FTZ-designated acceptance point to submit the application materials and carry out the following project acceptance procedures: examination and approval or record filing of establishment of the foreign-invested company, check and approval or record filing of the foreign-invested project, enterprise registration, organisation code registration and tax registration for the commencement of business; if the sector in which the proposed investment is to be made falls within the scope of special administration of the Negative List, check and approval of the foreign-invested project may be involved and the project approval materials will need to be submitted; and

(4) collect the foreign-invested project record filing or approval certificate, business license, organisation code certificate and tax registration certificate (an “all in one” reform is being implemented on a trial basis in the Xiamen area of the Fujian FTZ).

For the specific establishment materials, see the “Information on Establishing a Foreign-invested Company in the China (Shanghai) Pilot Free Trade Zone” at (http://zwdt.sh.gov.cn/shen3hall/zmq/wzslIndex.jsp?tabNo=6).

4. What are the rules on foreign exchange convertibility in the zones?

The major reform measures regarding foreign exchange control in the Shanghai FTZ at present include the voluntary exchange conversion system, free trade account system and the elimination of administrative approval for the provision of security for foreign parties. Among these reforms, some have already been pushed out to the entire country, e.g. a registration system has been implemented for foreign security provided for domestic loans. It can be expected that the exchange control measures will later be implemented on a trial basis and intensified in the other FTZs.

At present, the important rules of the Shanghai FTZ for the conversion of foreign exchange are as follows:

(1) voluntary exchange conversion rules: foreign exchange registration and amendment of foreign exchange registration for direct investment can be carried out directly with the bank, and no longer require the approval of the exchange control authority;

(2) free trade account rules: domestic organisations, foreign organisations, domestic individuals and foreign individuals in the FTZ can open free trade accounts to carry out the cross border settlement of funds on the current account or in connection with direct investment, carry out the settlement of foreign currency for trade in goods, carry out the settlement of foreign currency denominated registered capital for direct investment and, after foreign exchange conversion, transfer the same in China for use;

(3) international foreign exchange fund master accounts: enterprises in the FTZ can open international foreign exchange fund master accounts that allow free flow of funds between the account and overseas and free transfer up to the specified limit for the international foreign exchange fund master account;

(4) higher ceiling on the amount of foreign exchange loans made abroad: the maximum amount of foreign exchange loans extended to foreign parties by a non-bank financial institution in the FTZ using its own foreign exchange funds may be as high as 50% of its owners' equity; and

(5) other rules: companies, including lease financing companies in the FTZ, can charge rent in foreign currency; foreign-invested enterprises in the FTZ can carry out conversion of all of their registered capital in their capital accounts as actually required; and foreign-invested enterprises whose main business is investment can directly carry out foreign exchange conversion and then carry out equity investment.

5. Can companies with initial operations in the FTZs easily set up branches or subsidiaries in other parts of the country?

A foreign-invested enterprise in the Shanghai FTZ wishing to establish a branch or subsidiary outside the FTZ is required to first carry out record filing with the investment promotion authority of the Pudong New Area Commerce Commission and business registration in the place where the branch or subsidiary is to be located. This procedure may also be carried out online through the “establishment of a branch by a foreign-invested enterprise” item of the FTZ's “investment handling through train”. However, the branch or subsidiary is unlikely to be deemed an “FTZ enterprise” and may be ineligible for the preferential measures available in the FTZ.

6. Should foreign investors be worried about the national security review? What does the process entail?

Foreign investors need not worry too much about China's national security review system. The national security review system is a system that has already been adopted by numerous countries, e.g. the US, Russia, Germany, Canada, Australia, Italy and other countries have been busy promulgating or revising foreign investment review laws based on national security or interests. From the draft Foreign Investment Law and trial measures for national security reviews in FTZs, the current case by case review regime for foreign investment will be abolished and replaced by a foreign investment administration method characterised by pre-access national treatment and the Negative List (all four of the FTZs have already adopted the Negative List system). Compared with that of other countries, China's national security review system is more relaxed toward foreign investors in terms of the targets of, and the criteria for, such reviews.

It is worth noting the following issues in China's national security review system. Firstly, the review procedure should apply only to transactions that genuinely have a bearing on national security interests, so as to encourage investment by foreign investors. Secondly, the review system should be clear and detailed, so as to provide the greatest certainty possible. Thirdly, the decisions of the joint conference should include remedies. Lastly, the review system should ensure confidentiality.

7. How many companies (domestic and foreign) have set up in the Shanghai FTZ so far? What are the most popular industries?

The Shanghai FTZ has expanded from its original 28.78 square kilometres to 120.72 square kilometres, with its coverage area expanding to the Lujiazui, Zhangjiang and Jinqiao areas. According to publicly available information, as at March 2015, the expanded Shanghai FTZ had approximately 58,000 enterprises. Combined with the existing industrial strengths of the newly-added Lujiazui, Jinqiao and Zhangjiang, the core industries such as finance, trade and shipping remain the most popular industries in the Shanghai FTZ.

8. What have been the biggest regulatory challenges encountered by foreign companies trying to set up in the Shanghai FTZ?

In terms of regulation, market access remains the main administrative challenge that hinders foreign investment in the FTZ, including the requirements with respect to equity percentage and the various restrictions faced after access.

The issues of inconsistent/unclear policies (including administrative examination and approval), and potential law enforcement activities that specifically target foreign-invested enterprises are also another important regulatory challenge. The Chinese government is currently strengthening the rule of law and enhancing transparency, and the challenge posed by corruption is also decreasing. These are positive signals. In different industries and sectors, the regulatory challenges faced by foreign investors also vary. For example, the online security review system currently being put in place in Chinese will have an adverse impact on relevant enterprises.

9. What are the rules on cooperation between Chinese and foreign law firms in the Shanghai FTZ? Will this be extended to the other three zones?

Currently, the Shanghai FTZ is the only region in China that is implementing a policy of mutual secondment of lawyers and association between Chinese and foreign law firms on a pilot basis. “Mutual secondment” and “association” between Chinese and foreign law firms are required to comply with certain rules, including the Implementing Measures for the Mutual Secondment of Lawyers by Chinese and Foreign Law Firms in the China (Shanghai) Pilot Free Trade Zone to Serve as Legal Counsel and the Implementing Measures for Associations Between Chinese and Foreign Law Firms in the China (Shanghai) Pilot Free Trade Zone.

“One stop” cross-jurisdictional legal services are an indispensable requirement of economic development, and at the government level there is a desire to foster a new environment of opening legal services to foreign law firms in accordance with reproducible and promotable work requirements. However, as only a short time has lapsed since the implementation of this policy, it is still difficult to judge the specific effect of the association method. In the short term, it is unlikely that the “mutual secondment” and “association” modes of cooperation will be rolled out to the other FTZs.

10. Do the FTZs offer any tax incentives?

Although the FTZs emphasise system reform, not policy incentives, the Shanghai FTZ's specific financial and tax incentive policies nevertheless cover business tax, income tax, value-added tax and import/export related taxes. For example, import stage value-added tax and consumption tax are levied as per regulations on goods produced, processed and sold in China proper via the boundary between the FTZ and China proper by enterprises in the FTZ.

The import tax policies of the Guangdong, Tianjin and Fujian FTZs have also now been published and implemented since their establishment. For example, in addition to the above import tax policy, pursuant to an application by an enterprise, the policy of levying customs duties on goods sold in China proper, based on their imported materials and parts or based on their actual state at the time of reporting for inspection, is being implemented on a trial basis in the three FTZs. The three FTZs have also specified certain special policies.


Author biography

Chenguang Ma
Senior partner

Chenguang (Sherry) Ma is a well-known finance lawyer who has many years of legal service experience in areas such as corporate governance, corporate M&A, finance (banks, trusts), asset disposal, private funds, real estate project investment and financing, as well as complex commercial dispute resolution. She is the managing partner of Co-effort Law Firm, executive president of Master Lawyer College of SUIBE and Co-effort, representative to the Shanghai Pudong New Area People's Congress and Deputy Secretary-General, Committee of China Zhi Gong Party. She has been the recipient of honors such as Outstanding Young Lawyer of Shanghai, Outstanding Shanghai Party Member of Zhi Gong Party, March 8 Red Flag Bearer, etc.





协力律师事务所的马晨光律师重点探讨了投资四大自贸区的各种独特优惠、设立企业的程序、税务优惠及各自贸区最受欢迎的产业

1. 2015
年综合负面清单和2014年上海自贸区负面清单有什么分别?

2015年负面清单,共计15个门类、122项特别管理措施。2015年负面清单一定程度上体现了2015年《外商投资产业指导目录》关于限制或禁止外资的内容,在外资开放程度上更为深入,在适用范围上已适用于四大自贸区,减少了不必要的、具体性的监管措施,转而增加并强调了重点领域的监管原则,更为清晰透明,操作性更强。

2.
各自贸区各有什么特点和独特的投资机遇?

四大自由贸易试验区在功能定位、投资机会上各有不同,具体如下:

(1)
上海自贸区最早设立并形成了负面清单管理模式等先行先试经验,将重点发展金融服务、航运服务、专业服务等服务业。

(2)
天津自贸区作为中蒙俄经济走廊的重要节点,将依托亚欧大陆桥连接功能,推动京津冀协同发展。高端制造业、融资租赁和金融创新等现代服务业领域将得到重点发展。

(3)
福建自贸区系海上丝绸之路的核心区,也是与台湾地区开展投资贸易自由化的前沿阵地,休闲旅游业和现代服务业将得到重点发展。

(4)
广东自贸区作为海上丝绸之路的重要枢纽,将依托港澳,将重点发展高端休闲旅游产业、生产性服务业以及航运物流业。

3.
在自贸区设立公司要通过什么程序?需要什么文件?

借鉴上海自贸试验区先行先试经验,目前,四大自由贸易区基本建立了网上申请、一口受理的区内企业设立流程。以上海自贸区内设立公司为例,设立申请基本流程如下:

(1)
确定公司注册地址,前往试验区指定受理点或市工商局申请企业名称预先核准并取得企业名称预先核准通知书;

(2)
设立外商投资公司需要登录中国.上海门户网站试验区投资办事直通车或中国(上海)自由贸易试验区门户网站,进行负面清单比对并填写相关网上表格。(http://wz.investment.gov.cn/SFI/bsRecordAction.do?method=bsRecordOneNew&stEntType=GS

(3)
前往试验区指定受理点窗口递交申请材料,办理以下项目受理手续:外商投资公司设立审批和备案、外商投资项目核准或备案、企业注册登记、组织机构代码登记、税务开业登记。拟投资的领域在负面清单特别管理范围内的,则可能涉及外商投资项目核准,需要提交项目核准材料。

(4)
领取外商投资项目备案或核准证书,营业执照,组织机构代码证以及税务登记证(福建自贸区厦门片区已经试行区内企业一照一码改革)。

具体设立材料详见中国(上海)自由贸易试验区外商投资的公司设立告知单http://zwdt.sh.gov.cn/shen3hall/zmq/wzslIndex.jsp?tabNo=6

4.
自贸区有什么结汇规则?

上海自贸区目前的外汇管理改革措施主要包括意愿结汇制度、自由贸易账户制度、对外担保去行政审批等。其中,一些改革措施已经推广至全国,例如企业外保内贷均实行登记制。后续可期待外汇管理措施在其他自贸试验区内试行和深化。

截至目前,上海自贸区的外汇兑换的重要规则如下:

(1)
意愿结汇规则。直接投资项下的外汇登记及变更登记可直接在银行办理,不再需要外汇管理部门审批。

(2)
自由贸易账户规则。区内机构、区内境外机构或者区内个人、区内境外个人均可以开立自由贸易账户,用于办理经常项下和直接投资项下的跨境资金结算,可以办理货物贸易外币结算,办理直接投资外币资本金结算,并在结汇后在境内划转使用。

(3)
国际外汇资金主账户。区内企业可以开立国际外汇资金主账户,该账户与境外资金往来自由,与国际外汇资金主账户在规定额度内自由划转。

(4)
较高境外外汇放款金额上限。区内非银行金融机构利用其外汇资金发放境外外汇放款的金额最高可达到其所有者权益的50%

(5)
其他规则。包括区内融资租赁类公司可以收取外币租金;区内外商投资企业可以根据实际需要将资本账户中的全部资本金办理结汇;以投资为主要业务的外商投资企业可以直接结汇进行股权投资。

5.
在自贸区内设立经营的企业要在中国其他地区设立分公司或子公司是否容易?

上海自贸区区内的外商投资企业到区外设立分/子机构的,需要事先经浦东新区商务委员会投资促进管理部门备案登记,并应前往区外分/子机构所在地进行工商登记。该项流程也可以通过上海自贸试验区投资办事直通车外商投资公司的分公司设立事项在网上办理。但是,在区外设立的分/子机构难以被视为区内企业,可能无法享受自贸区优惠措施。

6.
外商是否需要为国家安全审查制度而担忧呢?制度带来什么影响?

外国投资者对中国的国家安全审查制度无需抱有太大的担忧。国家安全审查制度现已成为许多国家采纳的制度,诸如美国、俄罗斯、德国、加拿大、澳大利亚、意大利以及其他国家均纷纷颁布或修订基于国家安全或国家利益的外资审查法律。从
《外国投资法草案》以及自贸区国家安全审查试行办法来看,现行对外商投资的逐案审批体制将会取消,代之以准入前国民待遇和负面清单的外资管理方式(四个自贸区均已采纳负面清单制度)。与其他国家相比较,中国的国家安全审查制度在审查对象、标准等方面对外国投资者更加宽松。

中国的国家安全审查制度需注意以下几个问题。首先,审查程序应仅适用于真正涉及国家安全利益的交易,以鼓励外国投资者投资。其次,审查制度应予以明确细化,提供尽可能多的确定性。再次,联合会议的决定应当附有救济措施。最后,审查程序应保证保密性。

7.
至今,有多少家(外国及国内)企业已在上海自贸区设立了?最受欢迎的行业是什么?

上海自贸区已从原来的28.78平方公里,扩展至120.72平方公里,覆盖范围扩至陆家嘴、张江和金桥地区。根据公开信息,截止20153月份,扩区后的上海自贸区企业约为5.8万家。结合新加入的陆家嘴、金桥、张江已有的产业优势,金融、贸易、航运等核心产业仍是上海自贸区内最受欢迎的行业。

8.
对于拟在上海自贸区设立的外资企业,最大的法制挑战是什么?

在监管方面,市场准入仍是主要限制外国投资者在自贸区投资意愿的行政挑战,包括股权占比要求、外资准入后面临的各种限制等。

政策制定(包括行政审批等)不一致/不明确问题,包括潜在专门针对外资企业的执法活动等也是重要的监管挑战。目前,中国政府正在加强法治并提高透明度,来自腐败的挑战也在减少,这些是积极的信号。在不同的行业领域内,外国投资者面临的监管挑战也各有不同。例如,中国正在推进的网络安全审查制度将对相关企业产生不利影响。

9.
在上海自贸区有什么中外律所合作的规则?这些规则会否在其他自贸区实行?

目前,上海自贸区是全中国范围内唯一可以实施中外律所互派法律顾问和联营政策的试点地区。中外律师事务所之间的互派联营需遵循一定规则,包括《中国(上海)自由贸易试验区中外律师事务所互派律师担任法律顾问的实施办法》和《中国(上海)自由贸易试验区中外律师事务所联营的实施办法》。

一站式跨法域法律服务是经济发展的必然要求,政府层面希望按照可复制可推广的工作要求,培育法律服务对外开放的新优势。但因该政策落地时间尚短,目前还难以判断该联营方式的具体效果。在短期内,互派联营合作模式可能不会在其他自贸区进行推广。

10. 自贸区有没有税务优惠?

虽然自贸区强调的是制度改革而非政策上的优惠,上海自贸区的具体财税优惠政策仍涵盖了营业税、所得税、增值税、进出口相关税收等各个方面。例如,对设在试验区内的企业生产、加工并经二线销往内地的货物照章征收进口环节增值税、消费税。

目前,广东、天津和福建自贸区有关进口税收政策也已公布,并已于自贸区挂牌成立之日起执行。例如,除前述进口税收政策外,根据企业申请,在三大自贸区试行对该内销货物按其对应进口料件或按实际报验状态征收关税的政策。三个自贸区还明确了一些特殊政策。


作者简历

马晨光
高级合伙人

知名金融律师,在公司治理、公司并购、金融(银行、信托)、资产处置、私募基金、房地产项目投融资及复杂商事争端解决等领域具有多年法律服务经验。任上海市协力律师事务所主任、上海对外经贸大学协力巨匠律师学院执行院长、上海市浦东新区人大代表、致公党浦东区委副秘书长。荣获上海市优秀青年律师、致公党上海市优秀党员、上海市三八红旗手等荣誉称号

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]