Procedure
Step 1: Approval
of Project Application Reports
Upon reaching agreement by the
parties to an equity or contractual JV after negotiation, the Chinese party
should submit the project application report to the local foreign trade and
economic cooperation department.
For projects under the encouraged and permitted
categories with an investment exceeding US$100 million and projects under the
restricted category with an investment exceeding US$50 million, the report is
examined by the provincial development and reform committee before submitting to
the State Development and Reform Commission for approval.
For projects requiring
the opinions of the relevant industry department, the approval organ must send a
letter of request for opinions to the industry department concerned together
with the necessary documents.
The project application report
should include: Basic facts about the project, technology and technical
processes, demand on energy and other resources, environmental impact
assessment, prices of public goods or services involved, means of capital
contribution and financing plans, equipment to be imported and amounts
involved.
Step 2: Approval
of Contract and Articles of Association
The contract, articles of
association and other relevant legal documents for establishing the JV signed by
the parties are submitted by the Chinese party to the local foreign trade and
economic cooperation department for approval.
Step 3: Application for Approval Certificate
After the contract and articles of
association are approved, the Chinese party should apply to the provincial or
municipal foreign trade and economic cooperation department for an approval
certificate.
Step 4:
Registration
Upon collection of the approval
certificate, an application for business licence should be filed with the
provincial or municipal administration for industry and commerce within 30 days.
Subsequently, the JV should complete such procedures as applying for official
seal and enterprise code, opening bank account, and registering for tax payment
and customs declaration with the local public security, technical supervision,
taxation, Customs, finance, foreign exchange administration, banking, insurance
and commodity inspection departments.
