Minimum Registered Capital Requirement
August 23, 2009
Under the Company Law, companies in the mainland are mainly incorporated in the form of limited liability companies or joint-stock limited companies. For limited liability companies, the minimum registered capital is lowered to Rmb30,000. For joint-stock limited companies, the minimum registered capital requirement is Rmb5 million.
According to the existing rules of government authorities overseeing different sectors, the following requirements are applied to FIEs concerning minimum registered capital:
(a) The minimum registered capital of a JV commercial enterprise engaged in wholesale or retail should comply with the requirements of the Company Law. The Company Law stipulates that the minimum registered capital of limited liability companies is Rmb30,000, while the minimum registered capital of joint-stock limited companies is Rmb5 million.
(b) The minimum registered capital of a foreign or JV bank is Rmb300 million worth of freely convertible currencies;
(c) The minimum registered capital of a foreign or JV financial institution is Rmb200 million worth of freely convertible currencies;
(d) The minimum registered capital of a JV travel agency is Rmb2.5 million;
(e) The minimum registered capital of a JV advertising agency is US$300,000;
(f) The minimum registered capital of a JV foreign trade company is Rmb50 million;
(g) The minimum registered capital of a JV international freight forwarding agency is US$1 million;
(h) The minimum registered capital of a foreign-invested printing company engaged in the printing of publications and printed materials for packaging is Rmb10 million, while the minimum registered capital of a foreign-invested printing company engaged in the printing of other printed materials is Rmb5 million;
(i) The minimum registered capital is Rmb2 billion for a company engaged in trans-provincial basic telecom business; Rmb200 million for a company engaged in provincial basic telecom business; Rmb10 million for a company engaged in trans-provincial value-added telecom services; and Rmb1 million for a company engaged in provincial value-added telecom services;
(j) The minimum registered capital of a foreign-invested insurance company is Rmb200 million or its equivalent in freely convertible currency;
(k) The minimum registered capital of a foreign-funded investment company is US$30 million;
(l) The minimum registered capital of a foreign-funded investment shareholding company is Rmb30 million.
Tags: business, Trade, foreign trade
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China’s FDI norms look set to be tweaked
April 16, 2009
April 16 — China will further streamline approval procedures for foreign direct investment (FDI) and channel more FDI into the underdeveloped western and central parts of the country, an official from the Ministry of Commerce (MOFCOM) said on Wednesday.
The move is part of the government’s efforts to boost FDI inflow, which has been affected by the global financial crisis. China had authorized its provinces to approve FDI proposals worth up to $100 million last month.
MOFCOM spokesperson Yao Jian said the country would ensure a more convenient environment for examination and approval of FDI proposals and launch policies to spur foreign investment flow into China’s central and western regions.
“FDI is of great significance in creating jobs and stimulating the economy,” Yao said.
The ministry will also encourage investment in sectors such as hi-tech, services and environment protection, facilitate the establishment of more provincial-level economic and technological development areas, as well as mergers and acquisitions activity under the Chinese anti-monopoly law, Yao said.
MOFCOM statistics revealed that the value of FDI in March fell by 9.5 percent year-on-year, the sixth monthly drop in a row. FDI touched $8.4 billion in March, the largest ever in the past six months, but the monthly decline rate was far lower than that of the previous months; it had dropped by 32.7 percent in January and 15.8 percent in February.
In 2008, foreign investors in China, who accounted for 3 percent of the nation’s total by number, contributed 30 percent to industrial output, 55 percent to its imports and exports, and created 11 percent of urban jobs.
In the first quarter, FDI in manufacturing and services dropped by 11.5 and 31.3 percent, among which, the real estate sector saw the biggest drop, of 38.3 percent.
Customs data also showed that in March, China’s foreign trade decreased by double digits from a year earlier, the fifth monthly drop since last November.
But a positive indicator was that the contractions were getting smaller. Exports in March decreased by 17.1 percent, 0.4 and 8.6 percentage points lower than that of January and February. Moreover, exports of labor-intensive products including garments, bags, shoes and furniture were growing.
Experts have said China’s foreign trade and FDI would witness mild growth in the last quarter of this year.
“The ease-off is encouraging, but the prospects are still tough and we cannot lower vigilance,” Yao said.
With regard to foreign trade, Yao said the government would assist small and medium-sized enterprises in developing their overseas markets; offer them help in marketing, registration and branding; urge financial institutions to grant loans to the large-scale equipment providers for exports, and encourage the imports of products related to hi-tech and environment protection and primary products.
(Source: China Daily)
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China’s foreign trade tops $2.56 trillion in value, but slows in 2008
February 9, 2009
China’s foreign trade reached to a new record in 2008, although the year-on-year growth rate dropped the lowest level in the last 7 years. Here is the news :
Feb. 6 (Xinhua) — China’s foreign trade topped 2.56 trillion U.S. dollars in value in 2008, but the year-on-year growth rate dropped below 20 percent for the first time in seven years, according to the General Administration of Customs.
The total value was up 17.8 percent compared with 2007, but the growth rate was down 5.7 percentage points.
Exports were up 17.2 percent to 1.43 trillion U.S. dollars and imports up 18.5 percent to 1.13 trillion U.S. dollars, but the annual export growth rate slowed by 8.5 and imports by 2.3 percentage points.
The trade surplus stood at 295.47 billion U.S. dollars, up 12.5percent, according to the administration.
The European Union remained China’s biggest trade partner with bilateral trade totaling 425.58 billion U.S. dollars, up 19.5 percent, and 9 percentage points higher than trade between China and its second main trade partner, the United States.
Sino-U.S. bilateral trade totaled 333.74 billion U.S. dollars, the smallest increase since China joined the World Trade Organization seven years ago, customs figures show.
Japan remained the third largest trade partner of China and the bilateral trade volume rose 13 percent year on year to hit 266.78 billion U.S. dollars last year.
Trade between China and India, the 10th largest trade partner of China, was up 34 percent at 51.78 billion U.S. dollars, but 21.5 percentage points down from a year ago.
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