The registered capital of a Sino-foreign joint venture financial leasing company is required to be more than 10 million U.S. dollars, and it must obtain an approval certificate from the Economic and Trade Information Commission; in the case of a joint venture, foreign capital must account for more than 25%; for details, see "Foreign Investment" Measures for the Administration of the Leasing Industry" Ministry of Commerce Order [2005] No. 5.
If the proportion of foreign investment is less than 25%, can it be regarded as a foreign-invested enterprise?
Answer :Can. The proportion of foreign investors' investment in the registered capital of Sino-foreign joint ventures and Sino-foreign cooperative foreign-invested enterprises is generally not less than 25%. If the capital contribution ratio of foreign investors is less than 25%, unless otherwise provided by laws and administrative regulations, they shall be approved and registered in accordance with the current approval and registration procedures for the establishment of foreign-invested enterprises. If the approval is passed, a foreign-invested enterprise approval certificate with the words "foreign capital ratio is less than 25%" will be issued; if the registration is obtained, a foreign-invested enterprise business certificate with the words "foreign capital ratio less than 25%" will be issued after the "enterprise type" license. For details, please refer to the document "Notice on Strengthening Issues Concerning the Approval, Registration, Foreign Exchange and Tax Administration of Foreign-Invested Enterprises" Foreign Economic and Trade Law Fa [2002] No. 575
About foreign-invested enterprises What are the relevant provisions for the board of directors and legal representative?
Can the type of enterprise not have a board of directors? Can the legal representative have to be the chairman or executive director?
Sino-foreign joint ventures must establish a board of directors and the legal representative must be the chairman;
Sino-foreign cooperation must establish a board of directors or joint management The legal representative of the organization must be the chairman of the board or the director of the joint management organization;
Wholly foreign-owned enterprises do not need to establish a board of directors, but must have an executive director. The legal representative must be a director Chairman, executive director or manager.
How long can the approval document of "Foreign-invested Enterprise Approval Certificate" be extended?
Answer: One month .
What is the authority to approve the amount of foreign investment?
Answer: The total investment in encouraged and permitted categories is 300 million The total investment is less than US$50 million and the restricted category is less than US$50 million.
What is the willing settlement of foreign exchange capital of foreign-invested enterprises?
Answer: The willing settlement of foreign exchange capital of foreign-invested enterprises refers to the capital account of foreign-invested enterprises The foreign exchange capital used for confirmation of capital contribution by the foreign exchange bureau where the China Economic and Trade Commission is located can be settled at the bank according to the actual operating needs of the enterprise. For details, please refer to the document "The State Administration of Foreign Exchange on the Pilot Reform of the Management Method for the Foreign Exchange Capital Settlement of Foreign-Invested Enterprises in Some Regions" Notice on Issues" Huifa [2014] No. 36.
What filing matters of foreign-invested companies require approval?
Answer: Amendments to the company's articles of association involving registration matters, changes in total investment, equity pledges, changes in the number and method of formation of board members, changes in the method of formation of legal representatives, changes in the ratio of domestic and foreign sales of products, etc. require the Economic and Trade Information Committee Approval.
The registered capital will be paid in installments. Do shareholders’ capital contributions in each phase need to be made in proportion to the shareholder’s capital contribution?
