Article 1 For the purpose of opening further to the outside world and developing the market circulation system, the said Measures are formulated in accordance with the laws and administrative regulations including the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, Law of the People's Republic of China on Chinese-foreign Contractual Cooperative Enterprises, the Law of the People's Republic of China on Enterprises Operated Exclusively with Foreign Capital and the Company Law.
Article 2 Foreign companies, enterprises and other economic organisations or individuals (hereinafter referred as "foreign investors") that establish the foreign invested commercial enterprises in the territory of China and are engaged in the business operations shall abide by the Measures.
Article 3 The foreign invested commercial enterprises refer to the foreign invested enterprises engaged in the following business operations:
(I) Commission agency: sales agents, brokers, auctioneers or other wholesalers selling other's goods and providing relevant auxiliary services based on the contract for gaining commission fee;
( II ) Wholesale: selling the goods of the retailers and industrial, commercial and institutional users or other wholesalers and providing relevant auxiliary services;
( III ) Retail: selling goods and providing relevant auxiliary services for consumption by individuals and groups at the fixed place or through television, telephone, mail order, Internet and vending machine;
(IV) Franchise: authorizing others to use one's own trademark, trade name and business mode by signing the contract for purpose of receiving the compensation or franchise fee.
Foreign companies, enterprises and other economic organisations or individuals shall undertake the business operations provided in (I), (11), (111) and (IV) aforementioned through the foreign invested enterprises established in the territory of China .
Article 4 The foreign invested commercial enterprises shall abide by the laws, administrative regulations and relevant rules of the People's Republic of China and their legitimate business operations and legal rights and interests shall be protected by the Chinese laws.
Article 5 The state commercial administrative authorities shall supervise and manage the investment in the commercial fields by foreign investors and business operations of the foreign invested commercial enterprises according to laws.
Article 6 The foreign investors of the foreign invested commercial enterprises shall enjoy the good credit standing and not engage in any act in contradiction with the Chinese laws, administrative regulations and relevant rules. The foreign investors that have the strong economic strength, advanced experience in business operation and management and marketing technique as well as extensive international sales network are encouraged to set up the foreign invested commercial enterprises.
Article 7 The foreign invested enterprises shall meet the following conditions:
(I) The minimum registered capital shall meet the relevant regulations provided in the Company Law.
( II ) The registered capital and total amount of investment shall meet the relevant regulations provided for the foreign-invested enterprises.
( III ) The operating term of the foreign invested commercial enterprises shall not exceed 30 years in general and the operation term of the foreign invested commercial enterprises established in China 's central and western regions shall not exceed 40 years in general.
Article 8 The foreign invested commercial enterprises that establish stores shall meet the following conditions:
(I) Those applying for establishment of the commercial enterprises and stores simultaneously shall meet the relevant regulations on the urban development and urban commercial development.
( II ) The foreign invested commercial enterprises already approved that further apply for establishing stores shall meet the following conditions in addition to the requirement provided in this Item (I).
1. Take part in the joint annual inspection on foreign invested enterprises on time and pass the annual inspection;
2. The registered capital of the enterprises has been paid up.
Article 9 After approval, the foreign invested commercial enterprises may conduct the following business:
(I) The foreign invested commercial enterprises engaged in the retail business:
1. commodity retail;
2. import of commodities for self-marketing;
3. purchase of the domestically made products for export;
4. other relevant supporting business.
( II ) The foreign invested commercial enterprises engaged in the wholesale business:
1. commodity wholesale;
2. commission agency (excluding auction);
3. commodity import and export;
4. other relevant supporting business.
The foreign invested commercial enterprises can authorise others to set up stores by means of franchise operation.
After approval, the foreign invested commercial enterprises can be engaged in one or more line(s) of sales business, and the types of the commodities sold shall be specified in the business scope provided in the contract and articles of association. |
