Changes on the Requirement for the Foreign Invested Companies

Thursday, 05 November 2015 09:29

The new Act was issued by the Ministry of Commerce named as MOC Act `2015` No. 2 on 28^th Oct 2015. Some requirements for the foreign investment has been cancelled. Please see below main points.

Foreign invested company limited by shares	It is no longer to have RMB30 millions as the registered capital; It is no longer to require the minimum equity for the foreign shareholder as 25%; It is no longer to required the payment one-off the total registered capital within 90 days since the approval certificate is issued and before the AIC registration;
Foreign investment company	It is no longer restricted to the limited liability company; Company limited by shares can also set up the foreign investment company; The minimum registered capital requirement as USD30 million has been cancelled; The requirement as the first installment of the registered capital should be paid and made capital verification before the application is cancelled; The term requirement for the payment of registered capital no less than USD30 million within two years since the establishment and paid up within five years has been cancelled;
Foreign invested VC investment company	The minimum registered capital requirements have been cancelled (USD10 million for non-legal entity; USD5 millions for corporation; USD 1 million for each shareholder); The longest term for capital contribution as five years has been cancelled; The minimum paid capital as USD10 million at the time of capital decreasing has been cancelled;
Foreign invested commercial company	It is no longer require the company pay up the total registered capital before the company can increase the commercial stores;
Foreign invested leasing company	It is no longer to have USD10 millions as the registered capital;
Foreign invested forwarding company	It is no longer to have USD1 millions as the registered capital; It is no longer required to operate 1 year and pay up the total registered capital before the branch can be set up;
Wholesale and warehouse services for product oil	It is no longer to have RMB30 millions for wholesale or RMB10 millions for warehouse services as the registered capital;
Sale business and warehouse services for original oil	It is no longer to have RMB100 millions for sale business or RMB50 millions for warehouse services as the registered capital;
Foreign invested logistics company	It is no longer to have USD5 millions as the registered capital;
Commercial factoring	It is no longer to have RMB50 millions as the registered capital;
Auction company	It is no longer to have RMB5 millions as the registered capital;
Equity Investment for foreign invested company	The limitation for the registered capital should be totally paid up is cancelled; The limitation for the accumulated equity investment cannot be more than 70% of the registered capital is cancelled;
M&A or Separation for foreign invested company	It is no longer required for paid up the total registered capital and have the capital verification before M&A or separation;
Inbound reinvestment for foreign invested company	It is no longer required for paid up the total registered capital and have the capital verification before the reinvestment; The limitation for the maximum for reinvestment should be no more than 50% of net assets is cancelled;
Strategy investment for the listing company	It is no longer to get the pre-approval from MOC before the foreign company can subscribe the directional issuance shares at CSRC;

If you have any questions, please send the email to me.

Ms. Jojo Hu

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

Email: jojohu@shanghaiinvest.com

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Changes on the Requirement for the Foreign Invested Companies

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