The “A” foreign company is the world top 500 overseas company which locates in Shanghai. It is a holding wholly-foreign owned enterprise with USD 30 million registered capital. The company’s mainly business is that being responsible for the management of invest and investee enterprises. In order to seek a chance of investing in Zhe Jiang Province, the “A” foreign company wanted to set branches in Hangzhou. After having signed the House Lease Agreement of offices in Hangzhou, the applications of setting braches have been refused by the Hangzhou Industrial and Commercial Bureau. The Bureau replied that if the company has intended to newly set investment enterprises or branches, it has needed to go through firstly checking the local financial affair offices. It’s the misunderstanding of Hangzhou Industrial and Commercial Bureau that the central administration has struck seriously to financial crimes (like P2P). So it has extended obstacles of executive levels after DongJin has known this situation. And then DongJin has assisted the “A” foreign company to explain to the Hangzhou Industrial and Commercial Bureau. After coordinating and communicating, the Bureau has agreed to adopt the way of easy request Hangzhou financial affair offices finally. The Bureau has approved the “A” foreign company to set branches application.

Dongjin Remind:

Due to some Industrial and Commercial Bureaus have little understanding about the central administration strikes seriously to financial crimes (like P2P), there are some deviations in executing. DongJin suggest that before foreign business investment companies settle branches out of the towns, especially sign the house rent contracts, they ought to communicate and verify with local bureau in advance. If there is any misunderstanding exactly, companies should make explanation work before reporting formally. Supposing that companies need help, please ask DongJin to join in the early decision-making.

Mike Chang

Partner

mikechang@shanghaiiinvest.com