Investment Procedures in Xiamen (xm.gov.cn) Updated: 2004-08-08 15:52 Initial examination of
the foreign-funded project
The investor or his/her trustee may inform Xiamen Foreign Investment
Executive Committee or its authorized district departments of the intent of
investment, and fill out and submit the application from for initial
examination. Meanwhile he/she may register the name of enterprise. Upon the
approval of the project, a complete set of documents for application for
establishment of a foreign-funded enterprise shall be submitted to the examining
and approving authorities.
Procedures for establishment of
foreign-funded enterprises
The examining and approving
authorities shall issue the document of approval within 7 working days after
receipt of the complete application documents. The investor shall, within 30
days after receipt of the document of approval, register with the Administration
for Industry and Commerce and obtain the business license. For the project
involving application for land use for plant construction, the investor shall
apply for a land construction permit by presenting the design plan to Xiamen
Urban Planning Bureau, and apply to Xiamen Land Board for the document of
approval of land use, the red-line print and the land use permit. The project
plan permit and the construction permit can be obtained from Xiamen Construction
Commission after completion of the construction drawings. Then the investor can
begin the construction. After the project has been completed and accepted, the
investor may acquire the land use certificate from Xiamen Land Board.
Documents necessary for application of establishment of
foreign-funded enterprises
The application documents for establishment of foreign-funded enterprises
shall be submitted in triplicate. 1.Project proposal, to be submitted in the
name of Chinese partner (not applicable to solely foreign-owned enterprises);
2.Invesment Application Form (exclusively for solely foreign-owned
enterprises);
3.Contract and Articles of Association of the foreign-funded enterprise (not
applicable to solely foreign-owned enterprise);
4.Feasibility Study Report on establishment of the foreign-funded enterprise;
5.Name List of the Board if Directors of the foreign-funded enterprise;
6.Photocopies of the valid business license or other certificate of business
operation issued by the government of the country or region where the foreign
investor resides, or photocopies of identity certificates of the foreign
investor in the case the investment is made in the name of individual person;
7.Financial Standing Certificate issued by bank with which the investor opens
his/her account.
8.A lease (or purchase) contract of the premise for production and operation
of the foreign-funded enterprise, a land-use contract signed with Xiamen Land
Board or the relevant district departments.
9.List of major machinery and equipment, office utilities and means of
transport to be imported for self use by the foreign-funded enterprise(including
description, model, quantities, unit prices and total value); and
10.Other supplementary documents deemed necessary by the examining and
approving department.
Application procedures for establishment of resident representative
offices
The foreign enterprise applying for establishment of its representative
office shall meet the following requirements:
The foreign enterprise shall have a history of two years or above. Its net
assets in the year preceding the filing of application should not be less than
USD500,000. It should have a fixed place of business in Xiamen and employees
capable of working in Xiamen for fairly long time. The application
procedures:
After the initial examination by Xiamen Foreign Investment Executive
Committee, the applicant may rent office with documents and materials for
re-examination. The applicant shall submit the following documents and
materials:
1. Documents and materials for initial examination (one copy each): a.
Application Form for Establishment of A Resident Representative Office of A
Foreign Enterprise with the signature of the chairman of the board of directors
or of the general manager and the official seal of the enterprise
(original); b. Letter of Attorney for appointment of the chief representative
with the signature of the chairman of the board of directors or of the general
manager and the official seal of the enterprise (original). Normally the chief
representative shall be dispatched from abroad by the enterprise. If it intends
to recruit the chief representative from China, it shall handle relevant
formalities in Xiamen Foreign Service Center; c. Valid and legitimate
business license issued by the relevant authorities of the country or region
where the enterprise is registered (duplicate copy) d. Balance Sheet of the
previous year issued by the accounting firm with which the enterprise keeps
business relations (original and Chinese translation); and e. Financial
Standing Certificate issued by the financial institution with which the
enterprise keeps business relations (original and Chinese translation).
2. Documents and materials for re-examination: a. All the documents and
materials required for the initial examination b. Document to certify the
site of the resident representative office; and c. Formalities of recruiting
local employees issued by Xiamen Foreign Service
Center.
Registation procedures for establishment of
foreign-funded enterprises
1. Name registration: The applicant may propose 1 to 3 names that reflect
the major business scope of the enterprise to the Administration for Industry
and Commerce and submit the following documents; Name Registration From for
Foreign Funded Enterprise; Legitimate business license or identity
certificate of the investor; and Project Proposal or Feasibility Study Report
and documents of approval (for restrictive projects or projects that require
approval). The registration department shall approve or reject within 3 days
upon receipt of the documents. As for the project involving special
examination and approval as stipulated by the State, relevant certifying
documents should be submitted.
2. Enterprise registration The following documents shall be submitted in
application for establishment of a foreign-funded enterprise a. Application
Form for Establishment of Foreign-Funded Enterprise with the signature of the
chairman and vice chairman of the board of directors;
b. Project proposal and Document of Approval;
c. Feasibility Study Report, Contract and Articles of Association of the
enterprises, and the document and certificate of approval issued by the
examining and approving authorities.
d. Business License issued by the government of the country where the
investor resides (individual investor should submit his/her identity
certificate); A certificate of financial standing of the investor; Name
list of the board of directors, letters of appointment of member of the board of
director, general manager and vice general manager, and their identity
certificates or passports (Chinese members should submit personnel certificates
and their resume); Documents to certify use of business abode; Name
Registration Form for Foreign Funded Enterprise; Other documents and
certificates stipulated by the law and regulations; and Document to certify
the representative appointed by the investor or the agent jointly authorized.
3. Registration fee The registration fee is charged at 0.08% of the part
of the registered capital below RMB 10 million and 0.04% of the part of the
registered capital above RMB10 million. No fee will be charged for the part of
the registered capital above RMB 100 million.
4. Customs registration The preparatory offices of foreign-funded
enterprise (including enterprises invested by Overseas Chinese, compatriots from
Hong Kong, Macao and Taiwan), representative offices of foreign enterprises and
Sino-foreign joint and cooperative ventures shall register with the Customs
before they can handle import and export procedures.
Forms of investment
1. Solely foreign-owned
enterprise, Sino-foreign joint venture, cooperative contractual enterprise, or
foreign-funded joint stock company limited; 2. Acquire an existing enterprise
by buying shares; 3. Contract or lease an enterprise; 4. Develop a single
real estate project; 5. Acquire the land use right and develop tracts of
land; 6. Process with supplied materials, or samples, or assemble with
supplied parts; and 7. Other forms of investment permitted by the law.
Methods of capital contribution
Contribution may be made in the following forms:
1. Imported machinery and equipment, office utilities, means of transport and
other materials for self-use of the enterprise; 2. Cash in foreign currency
remitted or brought in from abroad; 3. Industrial property or proprietary
technology necessary for the production of the enterprise; or 4. RMB income
from legitimate profits, dividends and royalties realized inside China.
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