State Administration for Industry and Commerce, Circular on Duly Carrying Out Relevant Registration Work After the Implementation of Administration of Foreign-invested Enterprises by Means of Record Filing

In principle, the establishment of, changes to (record filing) or deregistration of a foreign-invested enterprise not subject to the Negative List shall be subject to local jurisdiction, with the handling thereof being the responsibility of the lowest level administration for industry and commerce authorized with the administration of foreign investment of the place where the foreign-invested enterprise is located. The establishment of, changes to (record filing) or deregistration of a foreign-invested enterprise subject to the Negative List shall continue to be subject to the principle of hierarchical jurisdiction (Article 2(1)).

Related legislation: Decision on Amending the <PRC Wholly Foreign-owned Enterprise Law> and Three Other Laws and National Development and Reform Commission and Ministry of Commerce, Announcement [2016] No.22

Issued: September 30 2016

Applicability: Matters concerning Taiwanese, Hong Kong and Macao investors shall be handled with reference to the requirements of this Circular (Article 3(3)).

Main contents: Where a foreign investor invests in an industry other than one that is subject to the special administrative measures for access by foreign investors specified by the state (the Negative List), the proof of record filing from the commerce authority is not a precondition for the carrying out of business registration by the enterprise, and the administration for industry and commerce shall directly accept the application for the registration of the establishment of, or changes to, such foreign-invested enterprise (Article 1(3)).

If a foreign investor makes an investment that falls within the Negative List, it shall, when it applies to the registry for registration of the establishment of, or changes to, a foreign-invested enterprise or the deregistration thereof, submit in accordance with the law the official reply and approval certificate issued by the competent commerce department (Article 2(2)).

In principle, the establishment of, changes to (record filing) or deregistration of a foreign-invested enterprise not subject to the Negative List shall be subject to local jurisdiction, with the handling thereof being the responsibility of the lowest level administration for industry and commerce authorized with the administration of foreign investment of the place where the foreign-invested enterprise is located. The establishment of, changes to (record filing) or deregistration of a foreign-invested enterprise subject to the Negative List shall continue to be subject to the principle of hierarchical jurisdiction (Article 2(1)).

Related legislation: Decision on Amending the <PRC Wholly Foreign-owned Enterprise Law> and Three Other Laws and National Development and Reform Commission and Ministry of Commerce, Announcement [2016] No.22