C. Foreign investment laws and regulations

1. PRC's Law on Joint Ventures with Chinese and Foreign Investment and Its Implementing Regulations;

2. PRC's Law on Sino-Foreign Cooperative Joint Ventures;

3. PRC's Law on Wholly Foreign-Owned Enterprises and Its Implementing Regulations;

4. PRC's Income Tax Law on Foreign Invested Enterprises (FiEs) and Its Implementing Regulations;

5. PRC's Accounting Regulations on Foreign Invested Enterprises;

6. The Provisional Regulations on Terms of Operations for Enterprises with Chinese and Foreign Investment;

7. The Provisions for the Contribution of Capitals by Parties to Joint Ventures with Chinese and Foreign Investment 7-

8. The Provisional Regulations on the Required Ratio of the Foreign Capital to the Total Amount of Investment of Enterprise;

9. The Regulations of the State Council on Encouraging Foreign Investments;

       1 0. PRC's Regulations on Labor Management in Joint Ventures;

       1 1. PRC's Measures and Taxation on Import and Export Commodities of Foreign Invested Enterprises.

D. Types of foreign invested enterprise

1. Sino-foreign (equity) joint venture: This type of joint venture takes the form of a limited liability company and the contribution of foreign capital shall not be less than 25% of the total registered capital. The required foreign equity contribution depends on the size of the total investment, as illustrated below-.

                Total Investment ($1 Required Foreic -in Equity Particir)ation

                Less than US$3 million 70%

                US$3 mil. - US$10 mil. 50%

                US$10 mil. - US$30 mil. 40%

                More than US$30 million 33.3%

Individual parties of an equity joint venture shall share profits and losses in proportion to their equity contributions.

2. Sino-foreign cooperative joint venture (also called Sino-foreign contractual joint venture): In such a venture, a contract is drawn between various parties and each party shall share profits, losses, obligations and liabilities in accordance with the provisions set forth in the contract.

3. Wholly foreign-owned enterprise: The entire capital of a such enterprise must be invested by foreign investor(s) and the establishment of the enterprise must be beneficial to the development of the Chinese national economy.

[ Privies ]  [ Next ] [ Up ]

 

---

Copyright (c)1999 theshipping.com All rights reserved.