Article 11 An enterprise with sole foreign investment shall carry out its operation and management in accordance with the approved articles of association of the enterprise and free from interference.
Article 12 An enterprise with sole foreign investment employing Chinese staff and workers shall sign contracts in accordance with the law. Such contracts shall contain clear provisions relating to matters such as employment, dismissal, remuneration, welfare, labor protection and labor insurance.
Article 13 The staff and workers of an enterprise with sole foreign investment may, in accordance with the law, establish a trade union organization, which may undertake trade union activities and protect the legitimate rights and interests of the staff and workers.
An enterprise with sole foreign investment shall provide the necessary facilities for the activities of the trade union of the enterprise.
Article 14 An enterprise with sole foreign investment must set up books of account in China, conduct independent auditing and, in accordance with the regulations, submit its accounting statement to and accept the supervision of the financial and taxation authorities.
Should an enterprise with sole foreign investment refuse to maintain books of account in China , penalties may be imposed by the financial and taxation authorities, and the industrial and commercial administrative authorities may order the enterprise to cease operation or may revoke its business licence.
Article 15 The raw materials, fuel and other materials required by an enterprise with sole foreign investment and which come within its authorized scope of business may, in accordance with the principle of fairness and reasonableness, be purchased within China or in the international market.
Article 16 The various types of insurance of an enterprise with sole foreign
investment shall be taken out with insurance companies in China .
Article 17 An enterprise with sole foreign investment shall pay tax in accordance with the relevant State tax regulations and may enjoy preferential reduction of or exemption from tax.
Where an enterprise with sole foreign investment reinvests after-tax profits in China , it may, in accordance with State regulations, apply for reimbursement of the income tax already paid on the reinvested amount.
Article 18 Matters relating to the foreign exchange of an enterprise with sole foreign investment shall be handled in accordance with the State regulations governing foreign exchange control.
An enterprise with sole foreign investment shall open a bank account with the Bank of China or a bank designated by the State authority for foreign exchange control.
Article 19 The foreign investor may remit abroad legitimate profits earned from an enterprise with sole foreign investment, other legitimate income and funds obtained after liquidation of the enterprise.
Wages and other legitimate income of foreign staff and workers of an enterprise with sole foreign investment may be remitted abroad after payment of individual income tax in accordance with the law.
Article 20 The operating period of an enterprise with sole foreign investment shall be approved, following application by the foreign investor, by the examining and approving body. Where an extension of the operating period is required upon expiry, an application shall be made to the examining and approving authorities 180 days prior to the expiry of the original operating period. The examining and approving authorities shall, within 30 days of receipt of the application, make a decision on whether or not to approve the application.
Article 21 Upon termination of an enterprise with sole foreign investment prompt notification shall be given and liquidation carried out in accordance with the legally stipulated procedures.
Pending completion of liquidation, the foreign investor shall not dispose of the assets of the enterprise except for the purposes of carrying out the liquidation.
Article 22 Upon termination of an enterprise with sole foreign investment, procedures shall be completed Vetch the industrial and commercial administrative authorities for the cancellation of registration and handing in as well as the cancellation of the business license.
Article 23 Detailed regulations for the implementation of this Law shall be formulated by the State Council department in charge of foreign economic relations and trade and shall go into effect following a submission to and approval by the State Council.
Article 24 This Law shall be effective from the date of promulgation. |
