The Ministry Of Commerce Relaxed The Restrictions On Foreign Investment And Made Clear That The Registration Of Foreign Companies Is Applicable To The New Company Law.

< p > according to the notice on improving the management of foreign capital auditing published on the website of the Ministry of Commerce, the Ministry of Commerce decided to cancel the restrictions on the proportion of initial investment, the proportion of monetary contributions and the time limit for capital contributions to foreign investment (including Taiwan, Hong Kong and Macao), and at the same time, except for the provisions of laws, administrative regulations and the State Council's decision on the minimum registered capital of certain industries, the company's minimum registered capital shall be removed.

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< p > "notice" and said, < a href= "http://www.91se91.com/news/index_c.asp" > subscribed capital contribution < /a >, the mode of investment and the time limit for capital contribution shall be independently agreed by the company's investors (shareholders and promoters), and shall be specified in the joint venture (cooperative) contract and the articles of association.

The competent commercial departments at all levels shall make clear the above contents in the reply.

In addition to the State Council's regulations that do not apply for registration of registered capital, the payment of registered capital will no longer be examined.

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< p > it is not difficult to see from the terms that the provisions concerning the open registration of foreign-funded companies in the notice do not exceed the scope of the new company law.

The new company law is the biggest highlight of the cancellation of the company's minimum registered capital, and this notice is the first administrative regulation issued by the regulatory authorities specifically for foreign-funded enterprises after the implementation of the new company law in March 1, 2014.

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< p > Fan Jiannian, partner of French law firm Kidd, told reporters that there was a conflict between the new company law and the relevant laws and regulations governing foreign investment, especially the regulations of the Ministry of Commerce on capital contribution. There was a corresponding contradiction in the application of the law. The notice clarified the application of law.

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"P >" according to the notice, the decision abolished the provisions of the provisions of the joint venture capital of the joint venture parties of the joint venture enterprises and the supplementary provisions on the investment of the joint venture parties to the joint venture parties. The provisions of the regulations on the implementation of the Sino foreign joint venture enterprise law, the regulations for the implementation of the Sino foreign cooperative enterprise law and the rules for the implementation of the foreign-funded enterprise law on the capital contribution of the registered capital were amended.

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The practice of < p > < a href= "http://www.91se91.com/news/index_c.asp > > foreign capital law < /a > has been very complicated.

As a general law in related fields, the law of foreign-invested enterprises is a special law in the field of foreign investment. The relationship between the two companies and their specific application principles are rather complicated.

After the revision of the company law in 2005 and the implementation in January 1, 2006, it has caused considerable confusion in practice. Finally, in April 2006, the State Administration for Industry and commerce, the Ministry of Commerce, the General Administration of customs and the State Administration of foreign exchange issued the "Implementation Opinions on Several Issues concerning the application of law for approval and registration of foreign invested companies" (hereinafter referred to as the "executive opinion") for an overall clarification.

Even after the implementation of these four ministries' Executive Opinions, the State Administration for Industry and Commerce issued a notice on the implementation of the "implementation opinions".

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< p > Fan Jiannian said that from the legal point of view, the company law is superior to the departmental rules and regulations, and the departmental rules and regulations should not be applied any more. If there is no competent department to abolish it in writing, the local authorities of the competent department are likely to apply the previous rules in practice.

"The Ministry of Commerce has explicitly abolished the relevant laws and regulations, which will provide direct guidance for the practice of local commercial departments."

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< p > despite the repeal of the above-mentioned legal documents, analysts pointed out that the Ministry of Commerce's notice of audit management is still defective.

Some laws and regulations that also conflict with the company law have not been explicitly abolished. In practice, even if the rules of application of law are violated, those rules that have not been explicitly abolished will be applied by the examination and approval departments.

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< p > for example, the ministerial regulations promulgated in 2002, "Provisional Regulations for the establishment of foreign invested printing enterprises" respectively set up the minimum volume of capital of RMB 10 million yuan and 5 million yuan for foreign-invested enterprises engaged in publications, packaging, decoration, printing and other printing business activities.

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< p > > a href= "http://www.91se91.com/news/index_c.asp" > India < /a > D.H. Law Associates partner Bai Dashan (Santosh Pai) told the newspaper that the main measures for the reform measures mentioned in the notice were trading companies, start-up companies and other small and medium-sized enterprises. For large companies with strong financial strength and long-term China development plans, there was no problem in company registration, capital contribution ratio and registered capital.

"For foreign investment, the core issue of the Chinese market lies in the overall market environment and the acceptance of foreign products."

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Less than P, dragged down by the slowdown in economic growth, China's foreign investment attracted a year-on-year decline in May, the biggest decline in 16 months.

The Ministry of Commerce announced at a monthly regular news conference held in June 17th that China's actual use of foreign capital (FDI) in May amounted to 8 billion 600 million US dollars, down 6.7% compared to the same period last year, the biggest decline since January 2013 and a 3.4% increase in April.

Accumulatively, China's FDI value in the month of 1-5 was 48 billion 910 million US dollars, up 2.8% from the same period last year, the worst performance in a year, with an increase of 5% in April.

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< p > at present, the revision or reformulation of the law of the twelfth foreign-invested enterprises has been incorporated into the legislative plan of the Standing Committee of the NPC, and the Ministry of commerce is about to start drafting the draft law for this purpose.

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< p > the State Council issued a notice earlier, decided to send an inspection team to carry out the first comprehensive inspection of the new government since its implementation.

From June 25th to July 5th, the inspection teams will go to the relevant departments, units and some provinces (autonomous regions and municipalities) of the State Council for on-site supervision. The key inspection contents include the abolition and decentralization of administrative examination and approval matters and the promotion of decentralization.

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