Recently, the Ministry of Culture and Tourism of the PRC released a Circular on Adjusting Approval Conditions for Entertainment Venues and Internet Access Locations, which allows foreign investors to set up wholly foreign owned entertainment venues in China’s mainland.
According to the foregoing Circular, foreign investors, investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and investors from Taiwan shall submit an application to the provincial administrative department of culture and tourism for establishing an entertainment venue in China’s mainland. The application documents, conditions for establishment and procedures involved are consistent with those for Chinese domestic investors.
According to the Regulations on the Administration of Entertainment Venues of the PRC, entertainment venues refer to places such as singing, dancing and amusement that are open to the public for profit-making purpose.
Previously, foreign investors are only allowed to open entertainment venues in a joint venture with a Chinese partner. Since 2013, China has attempted to gradually loosen restriction on the equity ratio of foreign investments in the establishment of entertainment venues. The progress is as follows:
In 2013, the establishment of wholly foreign owned entertainment venues was allowed for the first time in China (Shanghai) pilot free trade zone;
In 2015, the establishment of wholly foreign owned entertainment venues was allowed in China (Fujian) pilot free trade zone;
In 2018, the establishment of wholly foreign owned entertainment venues was allowed in all China pilot free trade zones;
Since 27 May 2021, the restriction on the equity ratio of foreign investments has been abolished and wholly foreign owned entertainment venues are allowed to be set up in China’s mainland.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
Disclaimer
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
According to Individual’s Income Tax Law, Industrial and Commercial Bureau shall verify the duty-paid certificate in change registration for individual’s equity transfer. Therefore, the tax payment certificate shall be obtained before the transfer of individual’s equity.
Disabled employment security fund is a governmental fund collected from employers to support the development of undertakings for people with disabilities. The fund is collected to protect the interests of disabled people and to promote their employment, which shall be paid by the government authorities, organizations, enterprises, public institutions and private non-enterprise organizations who fail to arrange employment for disabled people according to provisions.
Hong Kong, Macao and Taiwan residents who have lived in the inland (mainland) China for more than six months with a legitimate and stable job, a legitimate and stable residence or continuous school attendance are eligible to apply for a residence permit in accordance with the relevant regulations according to their wishes.
The State Taxation Administration of China announced a Notice on Taxation Credit Administration on 13 September 2020, which introduced four measures to optimize taxation credit management and would come into force from 1st November 2020. The new policy will loosen the evaluation criteria of taxation credit by implementing following measures