Official microblogging
Ministry of Commerce Revise Some of Its Regulations and Normative Documents
source： date：2015-11-06 author：
Decision of the Ministry of Commerce on Revising Certain Regulations and Normative Documents (MOC Order 2015 No. 2) was announced on Oct. 28, 2015 and came into effect on the same day
Summary of the rules revised:
I. Rules on the Establishment of Foreign-Invested Enterprises
| Foreign-invested companies by shares |
Registered Capital l Requirement on minimum registered capital RMB 30 million cancelled l Requirement on minimum 25% foreign investment cancelled l Requirement cancelled that registered capital shall be paid full in 90 days after the approval |
| Foreign-invested Investment Company |
Form of Company l No longer limited to limited company by equity, can be limited company by shares Registered Capital l Requirement on minimum registered capital RMB 30 million cancelled l Requirement cancelled on deadline on payment of first installment and verification of capital l Requirement cancelled that 30 million capital shall be paid in 2 years and the rest in 5 years |
| Foreign-invested VC Company |
Registered Capital l Requirement on minimum registered capital cancelled l Requirement on capital payment deadline cancelled l Requirement cancelled that $ 10 million shall be guaranteed in case of decrease of registered capital |
| Foreign-invested Commerce Enterprise |
Registered Capital l Requirement cancelled that registered capital shall be paid in full before opening a new sales outlet |
II. Rules on M&A with foreign investment
| Strategic investment in listed companies |
One-shop approval l When a foreign investor subscribes to directional issued shares of listed companies, MOFCOM approval is not ex-ante to the reporting to CSRC |
| Re-investment in China by FIEs |
Pre-conditions l Pre-condition cancelled that all registered capital is paid full and verified Limitation l Limitation cancelled that the amount of re-investment up to 50% of net assets of the FIE |
| Consolidation and Split of FIEs |
Pre-conditions l Pre-condition cancelled that all registered capital is paid full and verified |
| Capital contribution by equity |
Pre-conditions l Pre-condition cancelled that all registered capital is paid full Limitation l Limitation cancelled that capital contribution by equity (with other non-monetary contribution) shall not exceed 70% of total registered capital |
III. Minimum registered capital contribution for some businesses cancelled
| Leasing |
l Minimum registered capital contribution cancelled ($ 10 million) |
| International freight forwarding |
l Minimum registered capital contribution cancelled ($ 1 million) l Requirement cancelled that capital be paid full before setting up a branch |
| Wholesale and warehousing of refined oil |
l Minimum registered capital contribution cancelled |
| Sale and warehousing of crude oil |
l Minimum registered capital contribution cancelled |
| Logistics |
l Minimum registered capital contribution cancelled ($ 5 million) |
| Commercial factoring |
l Minimum registered capital contribution cancelled (￥50 million) |
| Auction |
l Minimum registered capital contribution cancelled (￥5 million) |