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Introduction of “Joint Handling of Certificates and Licenses” in Beijing
With the continuous optimization of the business environment in Beijing, it is more and more convenient for market entities to enter the market. Among them, the continuous promotion of the reform work of "Joint Handling of Certificates and Licenses" is indispensable.
Special Rules of Non-Compete in Shenzhen
As a special economic zone in China, Shenzhen has the legislative power over the Shenzhen Special Economic Zone. Therefore, there are some differences between the rules formulated and applied in Shenzhen and those applied nationwide in terms of legal provisions on non-compete. The main differences are as follows:
China Revises Administration of Foreign Invested Telecommunications Enterprises
Recently, the State Council of the PRC released a decree to announce the decision to revise 14 and abolish 6 sets of regulations. The Administration of Foreign Invested Telecommunications Enterprises has been revised accordingly, which will take effect on 1 May 2022. The key changes of the new Administration of Foreign Invested Telecommunications Enterprises are as follows
China Beijing FIE Capital Reduction
The new Company Law will be officially implemented on July 1, 2024, resulting in many enterprises starting to deal with capital reduction matters. Kaizen has summarized the following issues to pay attention to during the capital reduction process for clients' reference.
Annual Compliance Requirements for China FIEs
All foreign invested enterprises (FIEs) registered in China shall complete annual compliance procedures as required by laws and regulations of the PRC. It is crucial to be aware of the relevant deadlines as failure to complete these procedures on time may result in fines and penalties.
How to Repatriate Profits from China?
Foreign invested enterprises (FIEs) incorporated in China may repatriate profits from China when they have generated profits. However, China’s mainland maintains strict controls on foreign exchange. Repatriation of profits from China will be tightly regulated. Before profits repatriation, the FIE shall satisfy certain conditions and complete certain procedures, which are listed as follows.
China Introduction of Provisions on the Administration of Enterprise Name Registration
The State Council issued Decree No. 734 on January 19, 2021, amending and passing the "Provisions on the Administration of Enterprise Name Registration", which has implemented on March 1, 2021.The executive meeting of the State Council has made extensive revisions to the " Provisions on the Administration of Enterprise Name Registration", and the main revised clauses are now extracted for clients’ reference.
China Introduction on the Catalogue of Encouraged Industries for Foreign Investment (2020 Edition)
The National Development and Reform Commission, Ministry of Commerce publicly issued Decree No. 38 on December 28, 2020, issuing the full text of the Catalogue of Encouraged Industries for Foreign Investment (2020 Edition), which comes into effect on January 27, 2021. The Catalogue of Encouraged Industries for Foreign Investment (2019 Edition) shall be repealed at the same time.
Registered Address (Residence) of the Beijing Company in China
Companies registered in Beijing must confirm with the lessor or property owner whether the address allows the company to be registered and used before applying for establishment registration or address change registration. It is illegal to change the use of a property without authorization because the property ownership certificate clearly states its intended use.
Foreign Direct Investment Forms in China
On 1 January 2020, the Foreign Investment Law of the PRC came into effect and replaced the Law of the PRC on Chinese-Foreign Equity Joint Ventures, the Law of the PRC on Chinese-Foreign Contractual Joint Ventures and the Law of the PRC on Wholly Foreign Owned Enterprises. Since then, foreign invested enterprises in China are no longer divided into sino-foreign equity joint ventures, sino-foreign contractual joint ventures or wholly foreign owned enterprises.