Investment Policies & Relevant Regulations
Q1: What other formalities
should be done after a foreign invested enterprise gets its business
license?
1) to apply for the official seals at Shanghai Public Security Bureau;
2) to apply6 for the foreign exchange registration certificate at
the Shanghai Foreign Exchange Administration Bureau;
3) to open the RMB and foreign currency account;
4) to go through the tax registration at the Tax Bureau;
5) to apply for Corporation Code Certificate at the Shanghai Technology
Supervising Bureau;
6) to go through the Customs registration;
7) to go through the Commodity Inspection registration at the Commodity
Inspection Bureau;
8) to go through the registration at the Shanghai Statistic Bureau;
9) to go through the employee recruitment procedure at the Labour
Bureau and overseas person's working procedure at the Foreigner
Working Administration Office or Taiwanese, Hongkongese and Macaunese
Working Administration Office in the Labour Bureau.
Q2: Dose the Customs
have any regulations about foreign invested enterprises and their
imports and exports?
In accordance with Customs Law of the P.R.C. and relevant regulations,
the Customs has formulated the following major regulations to administrate
foreign invested enterprises imports and exports:
(1) Once approved for establishment, a foreign-invested enterprise
shall register to the Customs.
The enterprise shall fill out the application for declaration for
declaration registration and prepare the following papers:
A. A duplicate or photo copy of approved business opening certificate;
B. A duplicate or photo copy of the business license issued by ICAB;
C. The financial guarantee issued by the bank (Hand in when the
Customs considers it necessary);
D. Relevant papers to show the business operations of the enterprise.
Once examined and approved by the Customs, the foreign-invested
enterprise will be given the Certificate of Declaration Registration
and pay service charge for it.
Given the Certificate of Declaration Registration, the foreign-invested
enterprise shall choose a full-timer in charge of or a person with
special responsibility for declaration at the Customs. They will
receive special training from the Customs. If they are qualified
through tests, they'll be given a Certificate of Declarer. With
this, they can handle declaration.
(2) Raw materials, fuel, components, parts accessories and packing
materials imported by a foreign-invested enterprise to fulfill export
contract of goods for export are exempt from import duty. The Customs
shall supervise in accordance with relevant provisions and issue
"A Registration Booklet of the Customs of the P.R.C. About
Imported Materials and Parts to Be for the goods mentioned above.
And the Customs examines and releases the goods according to its
enterprise contract or its import and export contract.
(3) While following the procedure of declaration on imported or
exported goods, the foreign-invested enterprise shall fill out the
Customs Declaration Form on Imports (Experts), and declare to the
Customs with the receipt of the list of goods transported. If the
goods imported or exported need licensing, the Customs will check
the license as well.
(4) In accordance with the regulation, the receiver of the imported
goods shall declare to the Customs within 14 days after the means
of transport declares its arrival, and the sender of exported goods
shall declare to the Customs 24 hours prior to the loading except
those with special permission of the Customs.
(5) Imported and exported goods shall be subject to the Customs'
examination.
(6) Materials and parts imported through a Free Duty Zone and used
to manufacture products for domestic marker shall be subject to
normal import formalities. The foreign-invested enterprise shall
have its import license examined by the Customs for its licensed
commodities and shall pay import duties and VAT for the materials
and parts
Back to top
Q3: Is it necessary
to get the assessment from the relevant government authority when
the foreign invested enterprises use equipment as their capital
contribution?
It is necessary for foreign investors to get approval from the government
authority in case that they sue equipment as capital contribution.
The Commodity Inspection Bureau is responsible for assessing the
value of the equipment and the Custom Office will impose import
duty on the equipment on basis of the assessed value.
Q4: What procedures
shall the foreign invested enterprises follow to exchange the foreign
currencies at the bank?
The Foreign Invested Enterprises should apply to their account-opening
bank for handing the foreign exchange and then provide the necessary
documents such as Application For for exchanging foreign currency,
payment voucher of foreign currency or cheque according to the bank's
requirements.
Q5: How shall a foreign
invested enterprise organize its production and export if some of
the products are under the administration of state export license?
A foreign-invested enterprise shall be ratified by the responsible
department of the State before establishment if it is going to manufacture
products that need license for export. Having begun its production,
the enterprise shall declare its annual plan within the scale ratified
by the State. The responsible department of the State will issue
an annual export license the enterprise.
Q6: How can a foreign
invested enterprise obtain an import license?
A foreign-invested enterprise shall submit its application to the
responsible government authority if it is going to import products
which are licensed for import by the state. Under the prerequisite
of reasonable use, the government will arrange for the enterprise
an import license within the allocation by the State.
Q7: What should foreign
invested enterprises do to establish branches?
The Foreign Invested Enterprises should apply to original Registration
Administration Bureau for Industry and Commerce for the establishment
of branches in China according to the relevant regulations. The
Foreign-Invested Enterprise shall have paid its registered capital
periodically according to regulation and have started production
if it wants to establish branches in China, and it should have paid
all its registered capital if it wants to establish any operative
branches.
Q8: Can foreign invested
enterprises establish branches out of China?
The Foreign Invested Enterprises shall fully contribute their registered
capital which is verified by the CPA according to the Articles of
Association and have started production (or open business) for at
least one year and manufacturing enterprises shall have certain
volume of export before they apply to establish overseas branches
including sub-company and representative office. The Foreign Economic
and Cooperation Department of State Council is responsible for the
examination and approval of the application to establish overseas
sub-company, while the Foreign Economic and Trade Commission of
Provincial level is responsible for the representative office. The
Foreign Economic and Cooperation Department of State Council is
also responsible for the application submitted by the enterprise
whose Certificate of Approval is issued by the same department.
Q9: Can a foreign invested
enterprise set up manufacturing place besides its registered address?
Foreign invested manufacturing enterprises can decide to put manufacturing
place to be consistent with registered address or not. According
to the concerned regulations of branch's establishment, foreign
invested manufacturing enterprises can apply to set up manufacturing
place besides its registered address on the basis of requirement
of production and management.
Q10: Can foreign invested
enterprises enjoy the tax-refund policy for their exported goods?
Foreign invested enterprises, manufacturing and exporting goods
within the company's business scope in accordance with Regulations
on VAT Refund (Exemption) for Exported Goods and Notification on
Taxation Issues of Foreign Invested Enterprises, can apply to competent
tax authority monthly for VAT exemption for their exported products
with necessary documents The input tax is used to credit the VAT
payable on domestically sold products. The balance of the creditable
input tax in excess of VAT payable shall be refunded.
Back to top
|