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  Full Coverages>China>CIFIT 2004>Invest in Xiamen
   
 

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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