In the last period, with the aim of a brighter future for investing in Asia, China has adopted a more free, market-oriented and transparent approach on supervising inbound foreign investment.
According to the above, on last July 30th Ministry of Commerce of China (MOFCOM) promulgated Decision on Revising the Interim Administrative Measures for the Record-filing of the Incorporation and Change of Foreign-invested Enterprises and Announcement on Matters Related to the Administration of the Record-filing of the Incorporation and Change of Foreign-invested Enterprises.
Since October 2016 for most of the industries, foreign investors don’t need to get approval to invest in China, instead, they only need to comply with the simple record filing procedure; now, with the publishing of above regulations, China has further extended the scope of foreign investment for which record filing applies.
For the non-foreign invested domestic enterprises merged by foreign investors, and the strategically invested public enterprises, the registration form shall, if not involving special access administrative measures and affiliated mergers and acquisitions, be subject to the record-filing management, instead of approval management. Under the record-filling system, the documents required have been greatly simplified and the processing time for record filing can be finished within 3 working days. In general, the record filing for MOFCOM and Administration for Industry and Commerce Registration can be conducted simultaneously.
Moreover, for more transparency, the new regulation requests the applicant to upload the Shareholding Structure Chart of Ultimate Actual Controller in the MOFCOM filing system, instead of letting the applicant decide by himself.
If you want to know more about the Record Filing Reform, do not hesitate to contact us at info@dandreapartners.com
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