Announcement of the Ministry of Commerce of the People's Republic of China and the Ministry of Civil Affairs of the People's Republic of China  No.81 - Encouraging Foreign Investors to Establish For-profit Elderly Care Institutions to Engage in Elderly Care Services in China
For the purpose of promoting the healthy development of the elderly care service industry in China and the opening-up of social service industry, and further implementing the Decision of the Central Committee of the Communist Party of China on Several Major Issues concerning Comprehensively Deepening Reforms and Several Opinions of the State Council on Expediting the Development of the Elderly Service Industry (Guo Fa No.35), and in accordance with the Law on Sino-Foreign Equity Joint Ventures, Law on Sino-Foreign Cooperative Joint Ventures, Law on Wholly Foreign-owned Enterprises, Law on the Protection of the Rights and Interests of the Elderly and Permitting Measures of the Establishment of Elderly Care Institutions and other relevant laws, regulations and departmental rules, matters relating to the establishment of for-profit elderly care institutions by foreign companies, enterprises and other economic organizations or individuals (hereinafter referred to as the "foreign investors") to engage in elderly care services in China are hereby announced as follows:
Article 1 Encourage foreign investors to establish for-profit elderly care institutions independently or with Chinese companies, enterprises and other economic organizations in a joint venture or cooperative way.
Article 2 The foreign-invested for-profit elderly care institutions shall be subject to the relevant laws, rules and regulations, aim at providing social services, pay tax in accordance with the law and operate in compliance. Their legal operation activities and legitimate rights and interests of contributors shall be protected by the law.
Article 3 A foreign investor to establish a for-profit elderly care institution shall submit the following materials on the application for establishing foreign-invested enterprises to the competent department of commerce at the provincial level where the institution is proposed to be located (i.e., the competent departments of commerce of all provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Corps):
1. application for the establishment;
2. description of the conditions (including the place, security, health care and so on);
3. contract and articles of association (a foreign-invested enterprise only needs to submit its articles of association);
4. list of the members of the Board of Directors and directors delegation letter;
5. notice on the pre-approval for the name;
6. description of the foreign investor's working experiences and the relevant supporting documents, or the descriptive document on the engagement of management team equipped with the management experience in the elderly care service industry; and
7. other materials required to be provided in accordance with laws, rules and regulations.
Article 4 A competent department of commerce at the provincial level shall make a written decision on approval or disapproval within 20 days upon its acceptance of the application concerned. Where the application is approved, the foreign investor concerned shall be awarded the Approval Certificate of Foreign-invested Enterprise with the wording "operate under the Permit for Establishment of Elderly Care Institutions" added in the business scope; where the application is disapproved, reasons therefor shall be explained in written form.
Article 5 A foreign investor shall handle the formalities for registration of foreign-invested enterprises within one month upon receipt of the Approval Certificate of Foreign-invested Enterprise with the administration for industry and commerce concerned.
Article 6 After the registration, a foreign-invested enterprise shall apply for and obtain the Permit for Establishment of Elderly Care Institutions in accordance with the relevant provisions of the Permitting Measures of the Establishment of Elderly Care Institutions. No foreign-invested for-profit elderly care institutions or foreign investors shall provide elderly care service or charge fees or admit the elders in any name before obtaining the said permit and being approved for registration in accordance with the law.
Article 7 Foreign investors are encouraged to participate in the transformation into the enterprises of the public elderly care institutions specifically providing for-profit services to the society. During the transformation, issues such as the maintenance of employees' interests and the maintenance and appreciation of the state-owned assets shall be handled properly.
Article 8 Foreign-invested for-profit elderly care institutions may engage in domestic investments related to the elderly care service. Foreign investors are encouraged to develop the elderly care institutions on a grand scale, operate the same in a chain mode and develop brands of quality elderly care institutions.
Article 9 Foreign-invested for-profit elderly care institutions shall enjoy the same preferential tax policies and policies on administrative and institutional fees reduction and exemption with those for the for-profit elderly care institutions invested with domestic capital.
Article 10 The application for establishing foreign-invested real estate enterprises which are established through changing such usage conditions as the land use or the plot ratio of the land for construction of elderly care facilities shall not be approved. Foreign-invested for-profit elderly care institutions shall not engage in business such as residential discount for elderly care.
Article 11 Where the business scope of a foreign-invested for-profit elderly care institution includes the medical and health service, such institution shall handle the formalities for submission for approval in accordance with the relevant policies.
Article 12 The competent departments of commerce at the provincial level shall strengthen the statistical work concerning foreign-invested for-profit elderly care institutions, and when issuing the certificate for approval, choose "Elderly and Disability Service"(Paragraph 8414 of National Economic Industrial Classification) in terms of the category of industry.
Article 13 Foreign-invested for-profit elderly care institutions established in accordance with the Announcement of the Ministry of Commerce of the People's Republic of China and the Ministry of Civil Affairs of the People's Republic of China  No.81 - Encouraging Foreign Investors to Establish For-profit Elderly Care Institutions to Engage in Elderly Care Services in China (hereinafter referred to as the "Announcement") shall participate in the joint annual report of foreign-invested enterprises on time.
Article 14 The establishment of for-profit elderly care institutions by investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region shall be subject to the Announcement. In case of any inconsistence between former regulations and the Announcement, the Announcement shall prevail.
Article 15 If the local competent departments of commerce and civil affairs encounter with any problems, please feel free to contact the Ministry of Commerce and the Ministry of Civil Affairs in a timely manner.