Foreign Investment in Logistic Industry Guidelines

"Foreign Trade and Economic Cooperation, State Administration of Taxation, the State Administration for Industry and Commerce, the State Administration of Foreign Exchange on Strengthening the Enterprises with Foreign Investment Approval, Registration, Foreign Exchange and Tax Management" issues related Notice, Foreign Trade Law [ 2002] No. 575 document provides : -

  1. Joint ventures, sino-foreign cooperative enterprises with foreign investment in its registered capital, the foreign investors' funded ratio is generally not less than 25%.    Foreign investors contributed less than 25%, in addition to laws and administrative regulations as provided otherwise, it shall be in accordance with an existing foreign-investment enterprise with the approval and registration procedures.  Upon approval, the character of "less than 25%" will appear in the  approval certificate ; upon obtained registration, the issued business licence with have the word "type of business" after the word " foreign capital ratio of less than 25% " .
  2. For foreign investment proportion with less than 25% foreign-invested enterprises, in addition to laws and administrative regulations as provided otherwise, the total investment for use the equipment imported under the quota or goods do not enjoy the tax relief benefits , other tax treatment of foreign-invested enterprises do not enjoy .
  3. For those have been enjoying the treatment of foreign-invested enterprises, to increase their investment or transfer of ownership to foreign investors , they can enjoy the relevant provisions of foreign-invested enterprises treatment.
  4. For foreign investment with proportion of less than 25% of foreign-invested enterprises, investments in cash and obtain a business enterprise license within three months from the date of full payment of all contributions ; investments in kind , industrial property and other capital contribution shall obtain a business enterprise license within six months from the date of full payment .
  5. Acquisition of Domestic Enterprises by Foreign Investors, it should, upon the foreign investment enterprise business license issued, within three months from the date of payment in full for the purchases, or under special circumstances which require an extension to pay, apply to the approving authority for application.  It shall, from the date of issuance the business license, within six months, to pay the purchase consideration for more than 60% of the total amount, and in one year, full payment of the consideration, according to the actual paid-up capital contributions paid pro rata share of income benefits.   Controlling investors cannot, before the full payment of the total consideration, made the business decision that is not be in the interests of the enterprise, nor to put assets to be included in the consolidated financial statements as in the manner the investor's own financial statements.   Equity transferor should request the local foreign exchange administration department to issue a foreign exchange registration certificate to prove the foreign investors has paid the consideration and the said transfer has came into effective and for file.