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Exim
Policy China
Registration
Within 30 days after the examination and approval organs issue
approval document and certificate, investors should register at
administrative offices for industry and commerce, which will issue
business license after examination and ratification.
Regulations
on investment input According to the Regulations on Investment Input
of Different Parties of Joint Ventures, all parties should turn in
the stipulated capital within six months from the issuance of
business license, if the contract provides that investment be turned
in one move; if the contract allows installments, the first
installment should not be lower than 15% of the agreed amount of
investment of each party and must be turned in within three months
from the issuance of business license. If any party does not observe
the regulations, the joint venture will be regarded as automatically
dispersed and the approval certificate will expire automatically.
The joint venture should cancel the registration at the
administrative office for industry and commerce and return the
business license. The Administration for Industry and Commerce will
make the announcement of revoking business licenses of those who do
not cancel registration or return the business license. The parties
who do not make investment within the contracted period of time will
be punished by the registration administrative offices.
Annual inspection: The
registration administrative offices conduct an annual inspection on
foreign-funded enterprises. The inspection examines the investment
paid by different parties, whether the joint venture is doing normal
business within the registered scope of business, whether there is
any investment withdrawal, transfer of property, or evasion of
debts, whether it has opened business, change or cancel registration
as stipulated by regulations. Foreign- funded enterprises should
submitannual inspection reports and statements of assets and
liabilities in time.
Supervision
and administration: The registration administrative offices take
the responsibilities of supervising and administrating the
implementation of the contract and articles of foreign-funded
enterprises. To those who do not or refuse to set up account books
inside China, the registration administrative offices have the right
to suspend their business or revoke their business licenses. The
offices also make sure that foreign- funded enterprises open
business, change or cancel registration as stipulated by
regulations, do business within the registered scope of business and
in accordance with the contracts and articles, go through annual
inspection, and observe relevant laws and policies of the State.
All parties in a foreign-funded enterprise should state
clearly in the contract and articles of association the time limit
of the investment and turn in the registered capital before that
time limit. Unless otherwise specified by the State, the following
regulations on the time requirement of investment are applied to the
investors of a foreign-funded enterprise.
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Contract
of labor Foreign-funded
enterprises must comply with the Labor Law of the People's Republic
of China and Regulations on the Implementation of Labor Contract
System of Beijing. The legal representative must sign labor
contracts with employees for a certain period of time on the day of
the employment.
The
hiring, firing and resigning of employees
Employing: Foreign-funded enterprises can determine their
institutional and personnel systems on their own and are free to
decide the time, scale, conditions, and patterns of their employing
activity. But child labor is prohibited. Women workers should not be
assigned to do work specified by the State as unsuitable for women.
If foreign- funded enterprises want to employ people from outside
Beijing, they must individually make application on the employment
relationship to local governments, or the administrative department
of the municipality will collect the cases and apply to Beijing
Municipal Bureau of Labor. People from Taiwan, Hong Kong and Macao,
who want to work in Beijing must apply for the Employment License of
People from Taiwan, Hong Kong and Macao. The Municipal Bureau of
Labor is the administrative department of the employment of people
from Taiwan, Hong Kong and Macao.
Dismissing: Foreign-funded enterprises are can dismiss those
who remain unqualified after trial employment and professional
training, who have broken the regulations of the enterprises} and
those who are convicted. Resigning:
Employees can resign during the trial employment period, or at any
time when the enterprise has violated the labor contract and
encroached the lawful rights of the employees.
Labor
protection Work time,
holidays, and leave: The work time should not exceed eight hours per
day. The average work time per week should not exceed 40 hours.
Foreign-funded enterprises are required to arrange holiday leaves
for employees in legal holidays such as the New Year, Spring
Festival, the International Labor Day, and the National Day.
Labor safety and hygiene: Foreign-funded enterprises must
strictly observe the regulations and standards of labor safety and
hygiene in China. The production equipment and installations must be
supplemented with safety and hygiene facilities. For new projects,
expansion projects and renovation projects, the safety and hygiene
facilities must be designed, constructed, and put into use
simultaneously with the principal parts of the projects.
Employment
of foreigners in China refers to the behavior of those who have not
obtained residence but are engaged in social labor activities in
China and get payment for their services. According to the
Regulations on Employment of Foreigners in China, a license system
is used to administer the employment of foreigners who come to work
in China. The employers
are required to apply for Employment Licenses for the foreigners
they want to employ and are not allowed to employ foreigners without
the Employment License of Foreigners in People's Republic of China.
The labor executive department of the municipal government is
responsible for the administration of foreigners' employment in
China. Foreign employees who work in foreign-funded enterprises
should pay tax in accordance with relevant laws. If the salary,
wage, and other legal income of the foreign employees are in foreign
currencies, the employee, after paying the tax, can either remit the
money or take it out of China; if the income is in RMB, the
employee, after paying the tax, can purchase foreign currencies at
designated banks with the effective certificate issued by foreign
exchange control department, and then remit the money or take it out
of China. The
employment of residents of Taiwan, Hong Kong and Macao should comply
with the Regulations on Employment of Residents of Taiwan, Hong Kong
and Macao.
Labor
Insurance, Welfare, and Salary System
Salary standard for foreign employees: Salaries for foreign
employees shall be settled and paid according to the labor contract
signed by both the enterprises and the employees. Salaries for the
employees from Hong Kong, Macao and Taiwan shall be settled in light
of the regulations for foreign employees.
The salary standard for Chinese employees is decided by the
enterprise itself, but should not be lower than RMB 1.4 yuan per
hour and RMB 240 yuan per month.
Standards for extraction of medical expenses, various welfare
and pensions for Chinese employees: The foreign-funded enterprises
should extract the total salaries and wages of Chinese employees
from its cost and take the extraction as the base.
Price
subsidiaries standards: According to the rules of the Ministry
of Finance, foreign- funded enterprises should hand in the various
price allowances (RMB 30 yuan per month for each Chinese employee in
the enterprise) to the local financial authorities that the State
pays to the employees, in accordance with the standards verified by
local financial and labor departments of the provinces, autonomous
regions and municipalities directly under the central government.
Exemption policies: Starting from the month of their
establishment, the State-approved export-oriented and
technologically advanced foreign funded enterprises are exempt from
this 30-yuan price allowances. Cost and expenses of the enterprises
shall be correspondingly reduced. The enterprises are exempt from
all the price allowances for Chinese employees who hold rural
residence cards.
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Policy and Regulations of Foreign Exchange
Control on Foreign-funded Enterprises
Issuance
of Foreign Exchange Control Certificate of Foreign- funded
Enterprises Within 30
days from the issuance of business license, the foreign-funded
enterprise should apply for the Foreign Exchange Control Certificate
from the local administration on foreign exchange control and
meanwhile submit the documents issued by the administration of
industry and commerce. The enterprise can hold the certificate to
open its foreign currency account in the designated banks. With the
approval of administration of foreign exchange control, the
foreign-funded enterprises can also open foreign currency accounts
at financial organs within or out of the Chinese territory.
Opening
account in China Opening
a foreign currency account: Foreign-funded enterprises may choose
any bank that has the right to do foreign currency operations to
open a foreign currency account. In applying for the opening of
account, the following documents are to be delivered:
Business license ratified and issued by the administration of
industry and commerce Approval
certificate for establishment of the enterprise
Foreign Exchange Control Certificate of Foreign-funded
Enterprises issued by the Administration of Foreign Exchange
Control. Opening a RMB
account: Foreign-funded enterprises may choose any bank that has the
right to do RMB operations to open a RMB account. For the
application, the following documents are to be delivered:
Business license ratified and issued by the administration of
industry and commerce Approval
certificate for establishment of the enterprise
Payment
and remittance of foreign exchange
With relevant certificates and documents, current payment of
foreign exchange within the business scope of the foreign- funded
enterprise can be directly remitted through the bank of deposit.
Foreign-funded enterprises can go through the repayment of
foreign capital and interest with the bank of deposit by the
Examined Paper of Foreign Loan issued by the Administration of
Foreign Exchange Control. Profits that foreign investors obtained,
and salary income of foreign employees and employees from Hong Kong,
Macao and Taiwan can be remitted through the bank of deposit.
The remittance of foreign exchange under the items of the
enterprise's capital, such as the capital transfer of foreign-funded
enterprises, recovery of investment, and the remittance of outlay of
the enterprise's branches outside China, must be approved by the
Administration of Foreign Exchange Control.
Profits
in RMB obtained by foreign investors
Approved by the Administration of Foreign Exchange Control,
the foreign investor of the foreign-funded enterprise can invest its
profits in RMB in Chinese enterprises that can create foreign
exchange or increase foreign exchange income. Besides the
preferential treatment of partial refund of the paid income tax, the
investor can also get the same treatment as the foreign exchange
abroad, foreign-funded enterprises should go through foreign loan
registration with the Administration of Foreign Exchange Control.
Overseas loans that need the Chinese party's guarantee should be
considered in light of the State plan of employing foreign
investments and be reported to relevant departments for approval.
Foreign
currency exchange Examined and approved by the Administration of
Foreign Exchange Control, foreign-funded enterprises can sell their
revenue in foreign currencies, foreign investment, etc. on the swap
market. Also on the swap market, they can also buy foreign
currencies needed for activities within their business scope,
foreign loan repayment, and for remittance of the foreign investor's
profits, etc.
Annual
check on foreign currency Foreign-funded enterprises should entrust accountant firms
appointed by the Administration of Foreign Exchange Control to
conduct annual check on their use of foreign exchange and present an
annual report on the results of the inspection before April 30 each
year. The enterprises should go to the Administration of Foreign
Exchange Control with the annual report and their Foreign Exchange
Control Certificates of Foreign- funded Enterprises to renew the
ratification of the certificates before May 31 each year.
Preferential
policies to foreign investment
Foreign-funded enterprises may open foreign currency account
in the local designated banks with the Foreign Exchange Control
Certificate of Foreign-funded Enterprises.
Foreign-funded enterprises may adjust their foreign currency
surplus or shortage on the swap market.
Authorized by competent departments, foreign-funded
enterprises may export products bought with RMB from domestic
producers in order to achieve comprehensive compensation of foreign
currency. Foreign investors may reinvest their RMB profits in other
enterprises within China which can generate new and additional
foreign currency earnings, meanwhile they can enjoy the same
preferential treatment as that of investment in foreign currencies.
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Foreign
investors may, in the form of joint venture, obtain the right to the
use of state-owned land in Beijing with compensation by means of
auction, bid or agreement. The allotted time for land-use right is
from a minimum of 40 years to a maximum of 70 years, depending on
the purpose of use. Foreign
investors are encouraged to develop and reconstruct the old
residential districts in the city proper of Beijing. They may engage
in the development and construction of high-grade residence,
industrial buildings, and commercial, tourist and recreational
facilities and may also conduct operations and other economic
activities with the developed real estate.
Foreign investors can sell or rent the real estate they have
developed to enterprises, organizations and individuals both inside
and outside China. Foreign investors can sell or rent their
buildings and the right to the use of land to banks or other
financial institutions in and outside China.
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Policy and Stipulations Regarding the
Inspection of Import & Export Goods
Mandatory
inspection: The scope of mandatory inspection: inspection of all the
goods enlisted to be inspected by the commercial inspection
organization for import and export; quarantine tests for export
food; quarantine tests for export animal products; appraisal for the
function and usage of packages and containers for dangerous goods to
be exported; appraisal for the transportation conditions of cargo
holds and containers for decompose-prone food to be exported; tests
on imports and exports which are regulated by other laws and
stipulations. Inspection
exemption: Some goods are exempt from inspection providing that they
meet the requirement of the State Commodity Inspection Bureau and
are so approved of. Inspection exemption can also be granted to
samples, presents and gifts, exhibits not for sale, and other goods
with non-trade nature. Quality
licensing: For those import and export goods involving safety and
sanitation, import license for safety and export license for quality
are given to their manufacturers. No import or export of such goods
is permitted without the verification and license of the commodity
inspection organizations. At present, export licenses for quality
are issued for nine categories of goods and the import licenses for
safety are issued for 47 categories of goods. Hygienic enrollment and registration: All plants and
storehouses that produce, process and store export-oriented food in
China must pass the verification test of commodity inspection organs
and be given hygienic enrollment or registration for their plants
and storehouses before they are entitled to produce, process, and
store food for export. Import inspection for foreign- funded
enterprises: Those import goods to be used by foreign-funded
enterprises are subject to inspection to be conducted by these
enterprises themselves. Except for imports subject to mandatory
inspection and imports involving hygienic and safety issues, other
imports are subject to inspection to be conducted by these
enterprises. The equipment and raw materials, which are paid for by
foreign-funded enterprises, who demand appraisal of the value of
their imported equipment and raw materials, should be reported and
inspected by the commodity inspection organization; the equipment
and raw materials, which are purchased from overseas through
entrustment by overseas partners, should be reported and inspected
by the commodity inspection organization. Verification and appraisal
certificates serve as the valid documents in the examination of the
capital invested by the joint venture or cooperative enterprises.
Priority policy: Foreign-funded enterprises which produce
export- oriented products enjoy priority when applying for such
documents as inspection appraisal, quality license, hygiene
registration and referential certificate for original place of
production.
Recognition
and Definition of Technology Intensive and Knowledge Intensive
Foreign-funded Enterprises.
To
apply for the recognition and definition as technology intensive or
knowledge intensive foreign funded enterprises, the enterprises must
fill out the application form for recognition and definition of
these two kinds enterprises, then submit their application to
Beijing State Taxation Bureau, who will examine the application
together with Beijing Science and Technology Commission. The latter
will issue approval documents and recognition certificates to
qualified enterprises. When
the application has been approved by administration of taxation, the
recognized technology intensive and knowledge intensive enterprises
can begin to enjoy preferential taxation.
Technology and knowledge intensive enterprises must be
engaged in research, development, production, or marketing of one or
more of the following technologies and products:
electronic information technology and its related products
(including information processing softwares);
laser technology and its related products;
the technology of integration of laser, engine and
electronics and related products;
life sciences, biology engineering technology, and related
products; new materials
technology and related products;
new energy technology, new energy saving technology and
related products; environmental
science, labor protection technology and related products;
(new building materials, parts, construction technology and
related equipment; refined
chemical technology and related products;
new medicine and biological medical engineering;
nuclear application technology and related products;
geo-science, space technology, marine technology and related
technology; (other new
technologies and products that can bring high economic profits and
are suitable to be developed in Beijing.
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According
to the Corporation Law of People's Republic of China, foreign-funded
enterprises can, in their own name, invest in limited liability
companies with the capital and assets of the enterprises. To be
registered as the stockholders or sponsors, the foreign-funded
enterprises must accord with the following requirements:
having turned in all the investment promised in the contract;
having completed the examined and ratified project;
having begun to pay income tax
If the foreign-funded enterprise is the stockholder or
sponsor of the limited liability company, its shares in the company
must comply with the following requirements: (1) For industries where the State encourages overseas
investment, there is no limit as to the percentage of shares owned
by the foreign-funded enterprise (unless specified as otherwise by
the State). (2) For
industries where the State limits overseas investment, the shares
owned by the foreign- funded enterprise can not exceed 25% of the
total registered capital.
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