Article 16 According to the provisions of Article 15, Section 3 and 5, the investment company should go through formalities in accordance with related national rules while importing products. Annual accumulated amount of above import should not exceed the sum of registered capital that has been paid by the company.
Article 17 If the investment company apply for operating the business in terms of Article 15, it should submit following papers to the Ministry of Commerce:
1. The application letter signed by legal representative of the investment company;
2. The resolution made by director board of the investment company;
3. Revised regulations of investment company;
4. The approval certificate (copy), business license of the investment company(copy), and the financial examination report issued by Chinese registered accountant;
5. Financial examination report for the invested enterprises issued by Chinese certified public accountant;
6. Other papers required by the Ministry of Commerce.
Article 18 According to the character of the project that the investment company plans to establish, check and ratify the term of the investment company in accordance with related national rules of business term of foreign invested enterprises.
Article 19 If the investment company invest in enterprises, it should reported and be approved separately in accordance with the procedures of exa m ination and approval jurisdiction for foreign invested enterprises.
Article 20 If the investment company invests in enterprises, the rate of th e investment invested by foreign investor exclusively or invested with other foreig n investors takes no less than 25 per cent of the registered capital of its invested enterprise, its invested enterprise enjoys the treatment of foreign invested enterprises, and is issued approval certificate and business license of foreign invested enterprises. If the rate of the provided capital is less than 25 percent, it should go through the formalities of e xamination, approval and registration in accordance with present procedures of examination, approval and registration of establishing foreign invested enterprises unless there are provisions stipulated by laws and administrative laws and regulations.
Article 21 If the investment company establishes branches, it should report to the Ministry of Commerce for approval. If the investment company applies for establishing sub-companies, it must meet following requirements:
1. The investment company has paid in time the registered capital in accordance with the provisions of the contract and regulations and the paid capital is no less than 30 million USD, or the investment company has invested in or has more than ten foreign invested enterprises;
2. The region where the investment company plans to establish sub-companies should be the investment concentrated region of investment companies or products selling concentrated region.
Article 22 The investment company who meet the requirements may apply for regional general headquarter of transnational corporation (hereinafter referred to as ( "regional headquarter"), and go through change formalities in accordance with laws.
1. The investment company applies for regional headquarter should meet following requirements:
(1) Have paid no less than 100 million USD registered capital, or have paid no less than 50 million USD registered capital. The total sum of the property of its invested enterprise in the year before it makes the application is no less than 3 billion yuan RMB and total sum of the interests is no less than 100 million yuan RMB (calculated in accordance with related provisions of merged report forms).
(2) Accord with the provisions of Article 8;
(3) Have established research and development institute in accordance with related rules.
2. The Investment company who has been approved as a reg i onal headquarter I nlay carry out following business according to its actual needs of its business in Ch in a :
(1) The business stipulated m Article 10 and 15;
(2) Import and sale at home (exclude reta i l) the product of transnational corporations and its holding affiliated company;
(3) Import raw and supplementary mate rials , spare parts and accessories required by maintenance service for the products of its invested enterprises and transnational corporation;
(4) Accept service contract of internal and external enterprises;
(5) Be engaged in the service of logistics and distribution in accordance with related rules;
(6) Establish financial company with the approval of China Bank Regulation Commission, and provide related financial service for the investment company and its invested enterprises;
(7) Be engaged in engineer contract project abroad and investment abroad, establish financing leasing company and provide related service with the permission of the Ministry of Commerce:
(8) Trust other domestic enterprises to produce or process its products or the products of its parent company and sale both at home and abroad;
(9) Other approved business.
3. Application procedures
( 1 ) The investment company makes an application to local province, autonomous region, municipality under Central Government and city specifically designated in the state plan and the application is submitted to the Ministry of Commerce after preliminary examination;
(2) The Ministry of Commerce makes a reply within 30 days a s of the receipt of all the application materials. If any company is approved a regional headquarter, approval certificate of foreign tradesman invested enterprise is issued by adding Regional Headquarter;
(3) The investment company makes an application to industrial and commercial administrations for going through the change formalities within 30 days by the approval certificate.
4. Application files
(1) The application letter signed by legal person of the investment company;
(2) The resolution of director board or shareholders of the investment company and its transnational corporations;
(3) Revised regulations and contracts of the investment company;
(4) The approval certificate (copy) and business license (copy) of the investment company, and the financial examination report issued by Chinese registered accountant;
(5) The approval certificate (copy) and business license (copy) of its invested enterprises;
(6) Financial examination report (copy) of the invested enterprises issued by Chinese registered accountant;
(7) Major financial report form of the investment company audited by Chinese registered accountant;
(8) Other files the Ministry of Commerce required.
All the files should be formal ones except those that are given clear indication of "copy".
Article 23 The investment company's investment in the territory of China is not limited by its registration location.
Article 24 The tax revenue of the investment company is handled in accordance with related laws and regulations of China .
Article 25 The investment company should carry out conscientiously the plan of project investment and report the investment and operation situation in the first year to the Ministry of Commerce for record within 3 month before next year in accordance with prescribed content and form. The said materials should be used as one of the necessary materials for the investment company to attend unified annual examination and report.
Article 26 The investment company and its invested enterprise are separate legal person or entity. Their business contacts should be handled as the business contacts between independent enterprises.
Article 27 The investment company and its invested enterprises should abide by Chinese laws. Regulations and rules, must not shun the management and payment of tax by any means.
Article 28 The investment company must not be engaged in production directly.
Article 29 The said rules apply to the investors of Taiwan , Hong Kong and Macau who invest in the mainland of China .
Article 30 The interpretation of the said rules shall be vested in the Ministry of Commerce.
Article 31 The said Rules come into effect after 30 days as of the promulgation.
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