Four changes of Foreign Investment in China
The Foreign Investment Law and the Regulations for the implementation of the Foreign Investment Law have been officially put into effect since January 1, 2020. The four major changes in the registration of foreign-invested enterprises are as follows:
1. The concept of "Sino-foreign Equity joint ventures" and "Sino-foreign Contractual Joint Ventures" no longer exists in the type of enterprise.
There are only three types of enterprises: Limited Company, Joint Stock Limited Company and Partnership Enterprise.
If the organizational form & institute of foreign-invested enterprises do not conform to the mandatory provisions of the Corporate Law and the Law of the Partnership Enterprise, the application of alteration / filing / others must be submitted to the relevant registration authorities before January 1, 2025.
2. Chinese natural persons are entitled to be the investors in the foreign-invested enterprises
After the identification of Chinese natural persons as qualified investors, they shall be included in the category of Chinese investors
3. The system of examination and approval (filing) for the establishment and alteration of foreign-invested enterprises has been replaced by the information reporting system
The newly established or altered foreign-invested enterprises shall not be examined and approved by the local Commercial Department, but its report shall be recorded online through the platform of "one window acceptance of start-up enterprises", and the annual report shall be delivered online via the National Enterprise credit Information Publicity System.
4. The board of director is no longer the top authority
The top authorities of foreign-invested enterprises would be changed to shareholders' meeting，same as that of domestic-funded enterprises.
The following laws would be repealed simultaneously:
a. the Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures.
b. the Regulations for the implementation of the law of the people's Republic of China on Sino-foreign Equity joint venture.
c. the Law of the People's Republic of China on Wholly Foreign-owned Enterprises.
d. the detailed rules for the implementation of the law of the people's Republic of China on Wholly Foreign-owned Enterprises.
e. the Law of the People's Republic of China on Sino-Foreign Contractual Joint Ventures.
f. the detailed rules for the implementation of the law of the people's Republic of China on Sino-foreign Contractual Joint Ventures.
g. the Interim Provisions on the term of Sino-foreign joint ventures.
Back：Exemption and Reduction of offic rent -DG
Next：Reasons & Settlement for rejection of trademark:
1. The concept of "Sino-foreign Equity joint ventures" and "Sino-foreign Contractual Joint Ventures" no longer exists in the type of enterprise.
There are only three types of enterprises: Limited Company, Joint Stock Limited Company and Partnership Enterprise.
If the organizational form & institute of foreign-invested enterprises do not conform to the mandatory provisions of the Corporate Law and the Law of the Partnership Enterprise, the application of alteration / filing / others must be submitted to the relevant registration authorities before January 1, 2025.
2. Chinese natural persons are entitled to be the investors in the foreign-invested enterprises
After the identification of Chinese natural persons as qualified investors, they shall be included in the category of Chinese investors
3. The system of examination and approval (filing) for the establishment and alteration of foreign-invested enterprises has been replaced by the information reporting system
The newly established or altered foreign-invested enterprises shall not be examined and approved by the local Commercial Department, but its report shall be recorded online through the platform of "one window acceptance of start-up enterprises", and the annual report shall be delivered online via the National Enterprise credit Information Publicity System.
4. The board of director is no longer the top authority
The top authorities of foreign-invested enterprises would be changed to shareholders' meeting，same as that of domestic-funded enterprises.
The following laws would be repealed simultaneously:
a. the Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures.
b. the Regulations for the implementation of the law of the people's Republic of China on Sino-foreign Equity joint venture.
c. the Law of the People's Republic of China on Wholly Foreign-owned Enterprises.
d. the detailed rules for the implementation of the law of the people's Republic of China on Wholly Foreign-owned Enterprises.
e. the Law of the People's Republic of China on Sino-Foreign Contractual Joint Ventures.
f. the detailed rules for the implementation of the law of the people's Republic of China on Sino-foreign Contractual Joint Ventures.
g. the Interim Provisions on the term of Sino-foreign joint ventures.
Back：Exemption and Reduction of offic rent -DG
Next：Reasons & Settlement for rejection of trademark:
