21 Jan 2020
China Updates Registration System for Foreign-Invested Enterprises
China’s State Administration for Market Regulation has issued a circular (Guo Shi Jian Zhu No. 249 ) on the work of registering foreign-invested enterprises in accordance with the country’s new Foreign Investment Law. It sets out procedures for registering foreign-invested enterprises (including those from Hong Kong, Macao and Taiwan) and stresses the need to implement a foreign investment information reporting system.
According to the Circular, foreign investors and foreign-invested enterprises investing in areas not included on the ‘Negative List’ under the law must complete registration in accordance with the principle of equal treatment for both domestic and foreign investment.
Moreover, foreign-invested companies incorporated before 1 January 2020 must make adjustments to any arrangements not in-keeping with the mandatory provisions in China’s Company Law within five years of the implementation of the new Foreign Investment Law. They are also required to amend their articles of association and file all changes to registration details, including names of directors.
Source: State Administration for Market Registration