The Approval and Filing Procedure for Foreign Investment in China
4 minute read
China’s updated Foreign Investment law came into effect on January 1st of this year. The new law intent to accelerate market reforms and eradicate the previous inconsistency. Before the Foreign Investment law was implemented, the foreign investment filing and approval procedures were before SAMR (State Administration for Market Regulation) and MOFCOM (Ministry of Commerce).
Since January 1, 2020, MOFCOM will no longer examine and approve application made by foreign-invested enterprises involved in the Negative List, and enterprises involved in the permitted and encouraged list will no longer need to be filed at MOFCOM.
Whether being involved in the Negative List or not, foreign investors or foreign-invested enterprises shall submit investment information to MOFCOM via enterprise registration systems and the National Enterprise Credit Information Publicity System.
SAMR oversees corporate registration.
The following documents need to be submitted to SAMR before the incorporation of a WFOE:
- The Articles of Association, which define the organization and corporate governance of the company;
- Incorporation certificate of the shareholder
- Shareholder’s decision or resolution on incorporation of a WFOE
- Appointment letter for director(s)
- Appointment letter for supervisor
- Appointment letter for general manager
- Application forms
- Any other documents required by SAMR