As the further step for opening the China investment market, the Free Trade Zone was expanded these days to Guangdong province, Tianjin city and Fujian city, as well as the area in Shanghai has been further extended to Jinqiao area, Lujiazui area and Zhangjiang area. At the same time, the new regulation as “Record-filing Rules for Foreign Investment in FTZs” and it takes effect on 8th May 2015. The main points of this new regulation are as follows.
1. The clear definition for the Date for the Investment:
- For incorporation, it is the time for issuance the business license;
- For changing formalities, and if the business license is to be renewed, it is the time for the date of renewal the business license; and
- If the business license is not to be renewed, it is the time for the occurrence of such change formalities.
2. The recording or filing of the Articles of Association is no longer a pre-condition for incorporation or changing registration.
3. The lawful time for recording or filing:
- Incorporation: after name approval and before or within 30 days from the Date for Investment;
- Changing formalities: before or within 30 days from the Date for Investment. Such changing formalities covers the change of the total investment, registered capital, equity transfer or pledge, merge or split, early termination, change on the contribution of the capital, change on the company name/address/business scope/operation term;
The foreign investor shall log into the online one-stop acceptance platform to submit an application for incorporation or changing formalities of a company before the implementation of investment or within 30 days from the Date for Investment. The filing authorities will scrutinize whether the matter submitted should be filed for the record or not, and if they decide that it should be, the foreign investor should complete the filing formality within three working days. If not, the foreign investor should go on the approval formalities accordingly.
4. The online system for recording or filing will be formally established:
The company will report the recording/filing information as well as the annual report on this system. The information should be true and authentic.
If you want to know more details, please contact our senior consultant.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021