Changes on the Requirement for the Foreign Invested Companies

Foreign invested company limited by shares

l  It is no longer to have RMB30 millions as the registered capital;

l  It is no longer to require the minimum equity for the foreign shareholder as 25%;

l  It is no longer to required the payment one-off the total registered capital within 90 days since the approval certificate is issued and before the AIC registration;

Foreign investment company

l  It is no longer restricted to the limited liability company; Company limited by shares can also set up the foreign investment company;

l  The minimum registered capital requirement as USD30 million has been cancelled;

l  The requirement as the first installment of the registered capital should be paid and made capital verification before the application is cancelled;

l  The term requirement for the payment of registered capital no less than USD30 million within two years since the establishment and paid up within five years has been cancelled;

Foreign invested VC investment company

l  The minimum registered capital requirements have been cancelled (USD10 million for non-legal entity; USD5 millions for corporation; USD 1 million for each shareholder);

l  The longest term for capital contribution as five years has been cancelled;

l  The minimum paid capital as USD10 million at the time of capital decreasing has been cancelled;

Foreign invested commercial company

It is no longer require the company pay up the total registered capital before the company  can increase the commercial stores;

Foreign invested leasing company

It is no longer to have USD10 millions as the registered capital;

Foreign invested forwarding company

It is no longer to have USD1 millions as the registered capital;

It is no longer required to operate 1 year and pay up the total registered capital before the branch can be set up;

Wholesale and warehouse services for product oil

It is no longer to have RMB30 millions for wholesale or RMB10 millions for warehouse services as the registered capital;

Sale business and warehouse services for original oil

It is no longer to have RMB100 millions for sale business or RMB50 millions for warehouse services as the registered capital;

Foreign invested logistics company

It is no longer to have USD5 millions as the registered capital;

Commercial factoring

It is no longer to have RMB50 millions as the registered capital;

Auction company

It is no longer to have RMB5 millions as the registered capital;

Equity Investment for foreign invested company

l  The limitation for the registered capital should be totally paid up is cancelled;

l  The limitation for the accumulated equity investment cannot be more than 70% of the registered capital is cancelled;

M&A or Separation for foreign invested company

It is no longer required for paid up the total registered capital and have the capital verification before M&A or separation;

Inbound reinvestment for foreign invested company

l  It is no longer required for paid up the total registered capital and have the capital verification before the reinvestment;

l  The limitation for the maximum for reinvestment should be no more than 50% of net assets is cancelled;

Strategy investment for the listing company

It is no longer to get the pre-approval from MOC before the foreign company can subscribe the directional issuance shares at CSRC;