Ministry of Justice and State Administration of Foreign Exchange, Circular on Duly Carrying Out the Administration Work Concerning the Establishment of Overseas Branches of Law Firms
司法部、国家外汇管理局关于做好律师事务所在境外设立分支机构相关管理工作的通知
April 27, 2020 | BY
Susan MokDomestic law firms are encouraged to expand overseas
Issued: March 5, 2020
Effective: as of date of issuance
Applicability: For the purposes of this Circular, the term "overseas (sub-)branch of a law firm" means a (sub-)branch that has been invested in and established abroad by a Chinese law firm, that has been approved or registered by the relevant government department or organization of a foreign country or region, the personnel, business and finances of which are actually controlled by the law firm in question and that engages in substantive legal service business abroad (Article 1).
Where this Circular is silent on an administrative matter, such matter shall be handled in accordance with relevant administrative policy of the same time (Article 5).
Main contents: When carrying out record filing with the justice administrative authority regarding the establishment of an overseas (sub-)branch, a law firm shall, according to actual needs, file the overseas (sub-)branch's total investment amount, capital contribution percentage accounted for by the domestic party, total capital contribution amount of the domestic party and the investment currency (Article 2).
After carrying out the record filing, the law firm may carry out overseas direct investment-related foreign exchange registration with the local bank on the strength of the record filing document and other materials specified by relevant foreign exchange regulations.
After completing foreign exchange registration, the law firm may carry out outward remittance of direct overseas investment funds or inward remittance and conversion of income derived from changes in offshore capital at a designated foreign exchange bank in accordance with the law. Operating profit derived from offshore investments that are remitted inward by a law firm may be retained in a current account-related foreign exchange account or directly converted (Article 3).
clp reference: 1440/20.03.05 issued:2020-03-05 effective: 2020-03-05This premium content is reserved for
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