can a company whose percentage of foreign contribution is lower than 25% be treated as an enterprise with foreign investment? -金沙js9线路中心
updated:2014-12-05
yes, it can. the percentage of contribution from foreign investors within the registered capital of any chinese-foreign equity joint ventures (or any enterprise with foreign investment under a sino-foreign partnership) should not be lower than 25%. unless otherwise stated under relevant laws and administrative regulations, should the percentage of contribution made by foreign investors in any enterprise fall below 25%, said enterprise must be examined, approved and registered pursuant to the prevailing registration procedures for establishing enterprise with foreign investment . a foreign investment enterprise approval certificate with a remark indicating “the (company’s) percentage of foreign capital (is) under 25%” will be issued to enterprises which satisfy the examining and approval processes. those successfully obtaining the registration shall receive a foreign investment enterprise operation license with a remark indicating “the (company’s) percentage of foreign capital (is) under 25%” after the “type of business”. please refer to “the notice concerning the relevant issues on strengthening the approval, registration, foreign exchange control and taxation administration of foreign-funded enterprises” (no. 575 [2002] issued by the department of treaty and law under the moftec) for full details.