Browse >
Home / Archive by category 'Trade'
The establishment procedures are the same as those for foreign-invested wholesale enterprises. Under existing policies, FIEs engaging in commercial franchising are treated in the same way as domestic enterprises with regard to establishment requirements, rights and obligations, information disclosure, advertising and publicity etc, but are different in terms of establishment procedures. Approval procedures carried out by the examination and approval authorities are merely a matter of formality.
FIEs that are qualified to engage in franchising should apply to their original examination and approval authorities for permission to add “engaging in commercial activities in the form of franchising” to their business scope and submit the necessary documents, including information disclosure document, sample of franchising contract and operation manual of franchising. The examination and approval authorities will make a decision in writing on whether or not to approve the application within 30 days after receiving the complete set of application materials. Upon obtaining approval and completing the necessary formalities in respect of change of registration details with the industry and commerce administration, the FIEs may start their franchising business.
The following documents must be submitted when applying for permission to add “engaging in commercial activities in the form of franchising” to a company’s business scope:
- Application letter and resolution of the board of directors.
- Corporate business licence and Certificate of Approval of Foreign-Invested Enterprises (photocopy).
- Agreements on the modification of contracts and articles of association (for foreign enterprises, only the modified articles of association are required).
- Relevant documents showing compliance with Article 7 of the Measures.
- Basic information reflecting the provisions of Article 17 of the Measures.
- Sample of franchising contract.
- Operation manual of franchising.
FIEs are not allowed to engage in any business under the prohibited category as specified in the Catalogue for the Guidance of Foreign Investment Industries in the form of franchising.
Where patent licensing is involved in franchising, patent licensing contracts should be signed in accordance with the related provisions of the Patent Law of the PRC and its implementation rules, and record filing formalities should be completed in accordance with the provisions of the Measures for the Administration of Record Filing of Licensing Contracts for the Implementation of Patents. Before conducting franchising activities, the franchiser should handle matters relating to the trademark licensing contract in line with the provisions of the Trademark Law of the PRC and its implementation rules.
Tags:
foreign investment,
Trade,
Franchising Enterprises
Related Posts:
The approval procedures for foreign-invested commercial retail enterprises are the same as those for wholesale enterprises.
Stores opened by foreign-invested commercial enterprises engaging in retail in the provincial-level administrative region where they are located are approved by the local provincial-level commerce department and the applications are forwarded to MOFCOM for the record. For the opening of stores in another province, the opinions of the commerce department of that province have to be sought. The provincial-level commerce department in charge will send a letter to its counterpart in the place where the store is to be located seeking its opinion. During this process, the enterprise should cooperate by supplying the necessary documents.
Provincial-level commerce departments may grant approval to the establishment of the following stores, with the applications forwarded to MOFCOM for the record:
-
Stores with a business area of less than 3,000 sqm each and not exceeding three in number; the foreign investor may not open a total of more than 30 similar stores through its foreign-invested commercial enterprise in China;
-
Stores with a business area of less than 300 sqm each and not exceeding 30 in number; the foreign investor may not open a total of more than 300 similar stores through its foreign-invested commercial enterprise in China;
-
Stores whose scope of business does not include television, telephone, mail order, Internet and the sale of automatic vending machines;
-
Stores not engaging in tobacco retailing, and not selling chemical fertilisers
Tags:
Establishment,
business,
Enterprise
Related Posts:
Application Procedures
1. Examination and Approval of Project Proposals, Contracts and Articles of Association
The Chinese party (in the case of a wholly foreign-owned enterprise, the foreign investor or its appointed Chinese agency which is qualified to provide foreign investment consultation services) must submit to the local foreign economic and trade authorities the feasibility study report, contract, articles of association and other documents required. Trademark and trade name licensing contracts, technology transfer contracts, management contracts, service contracts and other legal documents signed by foreign-invested commercial enterprises should be submitted at the same time as annexes to the contract (in the case of wholly foreign-owned commercial enterprises, as annexes to the articles of association).
2. Registration at the industry and commerce administration
Foreign-invested wholesale enterprise granted approval to set up should complete its registration formalities at the industry and commerce administration within one month after obtaining the approval certificate issued by the provincial-level foreign economic and trade authorities.
3. Tax registration
After its incorporation, the enterprise should have an official seal made at the local public security bureau, apply for enterprise code from the technical supervision bureau, and complete tax registration formalities at the tax registration department.
Documents Required
Documents Required for Examination and Approval of Feasibility Study Reports, Contracts and Articles of Association
-
Feasibility study reports, contracts, articles of association (for foreign commercial enterprises, only articles of association required) signed by the investing parties, together with annexes to these documents.
-
Bank credit proofs of the investing parties, registration certificates (photocopy) and legal representatives’ certificates (photocopy). Personal identification papers are required if the foreign investors are individuals.
-
The latest annual audit reports of all investing parties.
-
Evaluation report on the state-owned assets to be invested by the Chinese party in a Sino-foreign equity or contractual joint venture commercial enterprise.
-
Import/export commodity catalogues of the proposed foreign-invested commercial enterprise.
-
Application and approval papers of the feasibility study.
-
Names of members of the board of directors of the proposed foreign-invested commercial enterprise and their letters of appointment.
-
Notification on pre-approval of enterprise name issued by the industry and commerce administration.
-
Land-use right certificates (photocopy) and/or tenancy agreements (photocopy), except for stores with a business area of less than 3,000 sqm.
-
Document proving compliance with the requirements of urban development and urban commercial development issued by the commerce department where the proposed stores are to be located.
-
Letter of attorney signed by the legal representatives for documents not signed by the legal representatives.
-
Other relevant documents.
Application for Changes
Existing foreign-invested commercial enterprises should submit applications to the original examination and approval authorities for permission to engage in wholesaling or retailing business, open branches or change partners in accordance with regulations governing foreign-invested enterprises. The following documents must be submitted when making application:
-
Application form.
-
The modified contract and articles of association if modifications are involved.
-
Feasibility study report on the opening of stores.
-
Resolution of the board of directors on the opening of stores.
-
The latest annual audit report of the enterprise.
-
Capital verification report (photocopy).
-
Registration certificates of the investing parties (photocopy) and certificates of the legal representatives (photocopy).
-
Land-use rights certificates (photocopy) and/or tenancy agreements (photocopy) for the proposed stores, except for stores with a business area of less than 3,000 sqm.
-
Document proving compliance with the requirements of urban development and urban commercial development issued by the government where the proposed stores are to be located.
-
Letter of attorney signed by the legal representatives for documents not signed by the legal representatives.
Tags:
Wholly Foreign-Owned,
Trade,
foreign investors
Related Posts:
China Shipping Container Lines Co. said it’s hard to predict if rates will keep rising because fees reflect demand.
By staff reporter Zhou Lingling
(Caijing.com.cn) Signs of a recovery in demand have prompted some global shipping firms, including China Shipping Container Lines Co. (SSE: 601866; HKSE: 02866), to raise rates on selected routes effective July 1.
CSCL’s investor relations office told Caijing that the carrier raised rates on China-Europe and China-Mediterranean routes by US$175 per twenty-foot equivalent unit to about US$400, with a further US$50 hike from July 15 in the pipeline. CSCL also raised rates on routes to Australia, Africa and the west coast of South America, the official said.
Meanwhile, container lines participating in the North Asia/New Zealand Discussion Agreement – an alliance formed as ‘a voluntary discussion forum’ – said rates on services linking China and South Korea with New Zealand will rise US$250 per TEU from July 15.
The Canada Westbound Transpacific Stabilization Agreement also said its members raised rates for dry containers by US$160 per TEU, effective July 1.
Neither organization disclosed the new rates.
Several container shipping lines had to abandon planned rate hikes in April amid a sluggish market.
According to the Shanghai Shipping Exchange, China’s export container shipping index closed at 769.05 points on July 3, up 0.8 percent week-on-week, ending several weeks of declines.
The exchange said in a report that traffic on routes to Europe grew significantly in the run-up to the traditional July-August peak season as domestic manufacturers accelerated production and shipments. But the exchange also said that current rates don’t cover shipping firms’ operating costs on services to Europe.
Li Pan, an analyst at Bank of China International, said in a recent report that shipping firms are expected to raise rates to offset rising costs during the peak season and into the third quarter.
With oil prices inching higher, shipping lines’ fuel surcharges are also rising.
An official from CSCL said the company will raise fuel surcharges on services to Europe and the Mediterranean by US$75 per TEU this month. The Asia-West Coast South America Freight Conference also said it will raise its bunker surcharge to US$522 from US$450, Â beginning July 15.
CSCL said it’s hard to predict if rates will keep rising because fees reflect demand. The global downturn has driven down container shipping traffic and rates.
CSCL’s net profit fell 96 percent last year to 131 million yuan, and it reported a net loss of 1.2 billion yuan in the first quarter of this year.
In Hong Kong on July 7, China Shipping Container was up 0.49 percent at HK$2.05, while in Shanghai its A shares were up 1.11 percent at 4.54 yuan.
China Shipping Container Lines Co. said it’s hard to predict if rates will keep rising because fees reflect demand.
By staff reporter Zhou Lingling
(Caijing.com.cn) Signs of a recovery in demand have prompted some global shipping firms, including China Shipping Container Lines Co. (SSE: 601866; HKSE: 02866), to raise rates on selected routes effective July 1.
CSCL’s investor relations office told Caijing that the carrier raised rates on China-Europe and China-Mediterranean routes by US$175 per twenty-foot equivalent unit to about US$400, with a further US$50 hike from July 15 in the pipeline. CSCL also raised rates on routes to Australia, Africa and the west coast of South America, the official said.
Meanwhile, container lines participating in the North Asia/New Zealand Discussion Agreement – an alliance formed as ‘a voluntary discussion forum’ – said rates on services linking China and South Korea with New Zealand will rise US$250 per TEU from July 15.
The Canada Westbound Transpacific Stabilization Agreement also said its members raised rates for dry containers by US$160 per TEU, effective July 1.
Neither organization disclosed the new rates.
Several container shipping lines had to abandon planned rate hikes in April amid a sluggish market.
According to the Shanghai Shipping Exchange, China’s export container shipping index closed at 769.05 points on July 3, up 0.8 percent week-on-week, ending several weeks of declines.
The exchange said in a report that traffic on routes to Europe grew significantly in the run-up to the traditional July-August peak season as domestic manufacturers accelerated production and shipments. But the exchange also said that current rates don’t cover shipping firms’ operating costs on services to Europe.
Li Pan, an analyst at Bank of China International, said in a recent report that shipping firms are expected to raise rates to offset rising costs during the peak season and into the third quarter.
With oil prices inching higher, shipping lines’ fuel surcharges are also rising.
An official from CSCL said the company will raise fuel surcharges on services to Europe and the Mediterranean by US$75 per TEU this month. The Asia-West Coast South America Freight Conference also said it will raise its bunker surcharge to US$522 from US$450, Â beginning July 15.
CSCL said it’s hard to predict if rates will keep rising because fees reflect demand. The global downturn has driven down container shipping traffic and rates.
CSCL’s net profit fell 96 percent last year to 131 million yuan, and it reported a net loss of 1.2 billion yuan in the first quarter of this year.
In Hong Kong on July 7, China Shipping Container was up 0.49 percent at HK$2.05, while in Shanghai its A shares were up 1.11 percent at 4.54 yuan.
Tags:
Shipping,
production,
price
Related Posts:
CHINA will reduce or eliminate export taxes on nearly 100 categories of goods including some agricultural products and fertilizers starting next month in its latest move to help the country’s flagging trade sector.
The cuts are the first outright tax reductions since December 2008 and follow seven increases in export tax rebates since August.
While the policies give at least some relief to the nation’s struggling exporters, they contribute little to fixing the main problem: restoring external demand, industry analysts said.
The Ministry of Finance said yesterday that 31 types of goods such as wheat, rice and soya beans will be exempted from export taxes starting July 1.
Direct, effective
Large tax reductions will apply to another 60 categories of products, including fertilizer and chemicals. The tax on phosphate fertilizer, for instance, will be cut from 75 percent to 10 percent.
“The move, similar to the previous increases in export tax rebates, is an obvious bid to counter the falling trade,” said Xue Jun, an analyst at Changjiang Securities Co. “A tax cut is more direct and effective than rebates and enhances cash flow.”
A tax cut is immediate, while exporters have to wait to receive a tax rebate.
“The frequency of these moves illustrates that the Chinese government still attaches great importance to exports, though domestic demand is considered key to the country’s economic recovery,” Xue said.
China’s May exports fell 26.4 percent from a year earlier to US$88.8 billion, the worst drop in at least 14 years. Last month, China announced it would raise tax rebates on more than 600 types of exports, including machinery, toys, plastic products and steel. Total rebates amounted to 102.9 billion yuan (US$15.1 billion) in the first quarter, up 18.4 percent from a year earlier.
Vice Commerce Minister Zhong Shan said China will spare no effort to protect the country’s share of the global market.
“China’s trade will suffer a retreat this year and experience slow growth in the coming years,” Zhong said in an article published in the Economic Daily yesterday. “We should go all out to stabilize trade. The focal point should be to avoid losing share in the global market. It is of great importance to keep companies alive and make jobs available, which lays the foundation for the expansion of domestic demand.”
Despite falling volume, Zhong said it may be possible for China to raise its share of global trade.
He said Chinese exports last year accounted for 8.86 percent of the world’s total exports in terms of value, still below the level of export giants Germany and the United States, which each hold around 12 percent of global market share.
At a time when people are slashing spending, China should be able to benefit because the country sells more necessities than luxuries.
CHINA will reduce or eliminate export taxes on nearly 100 categories of goods including some agricultural products and fertilizers starting next month in its latest move to help the country’s flagging trade sector.
The cuts are the first outright tax reductions since December 2008 and follow seven increases in export tax rebates since August.
While the policies give at least some relief to the nation’s struggling exporters, they contribute little to fixing the main problem: restoring external demand, industry analysts said.
The Ministry of Finance said yesterday that 31 types of goods such as wheat, rice and soya beans will be exempted from export taxes starting July 1.
Direct, effective
Large tax reductions will apply to another 60 categories of products, including fertilizer and chemicals. The tax on phosphate fertilizer, for instance, will be cut from 75 percent to 10 percent.
“The move, similar to the previous increases in export tax rebates, is an obvious bid to counter the falling trade,” said Xue Jun, an analyst at Changjiang Securities Co. “A tax cut is more direct and effective than rebates and enhances cash flow.”
A tax cut is immediate, while exporters have to wait to receive a tax rebate.
“The frequency of these moves illustrates that the Chinese government still attaches great importance to exports, though domestic demand is considered key to the country’s economic recovery,” Xue said.
China’s May exports fell 26.4 percent from a year earlier to US$88.8 billion, the worst drop in at least 14 years. Last month, China announced it would raise tax rebates on more than 600 types of exports, including machinery, toys, plastic products and steel. Total rebates amounted to 102.9 billion yuan (US$15.1 billion) in the first quarter, up 18.4 percent from a year earlier.
Vice Commerce Minister Zhong Shan said China will spare no effort to protect the country’s share of the global market.
“China’s trade will suffer a retreat this year and experience slow growth in the coming years,” Zhong said in an article published in the Economic Daily yesterday. “We should go all out to stabilize trade. The focal point should be to avoid losing share in the global market. It is of great importance to keep companies alive and make jobs available, which lays the foundation for the expansion of domestic demand.”
Despite falling volume, Zhong said it may be possible for China to raise its share of global trade.
He said Chinese exports last year accounted for 8.86 percent of the world’s total exports in terms of value, still below the level of export giants Germany and the United States, which each hold around 12 percent of global market share.
At a time when people are slashing spending, China should be able to benefit because the country sells more necessities than luxuries.
Tags:
Yuan,
Germany,
Import
Related Posts:
« Previous Page — Next Page »
