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Time:2009-10-10 01:21:49  Source:  Author:

Application Procedures for Foreign-funded Projects

I. Application Procedures for Foreign-funded Projects
1.Examination and approval procedures for establishing Chinese-foreign equity/contractual joint ventures in Hunan Province
Documents needed Working procedures Authorities


2. Examination and approval procedures for establishing wholly foreign-owned enterprise.
Documents Needed  Working Procedure  Authorities
Note: The issues involved in land shall be contacted and negotiated with local government.


3. Examination and approval procedures for processing/assembling and compensation trade
Documents Needed Working Procedure Authorities
(In the table the approval authority for Opening Activity Account is changed to Provincial Branch, Bank of China. The Provincial Branch, Bank of China is changed to bank designated for foreign exchange business)


Remarks:
(1). The following items shall be included in the application:
(a) Names of the contracted parties, number, date and term of the contract, (b) name, specification, model and quantity of the product(s), total value of import, export. In addition, for contractual processing and assembling, the unit price and the total amount of processing/assembling charges shall be included

(2). Note:
"*" Document raised by foreign-owned enterprise
"○" Document raised by domestic enterprises
"" Receive the document download from Hunan Provincial Department of Commerce   

4. Procedures on applying for the establishment of permanent representative agency of foreign enterprise
Foreign traders, manufacturers, forwarding agencies and other economic entity applying for setting up permanent representative agency in Hunan may register in administration bureau for industry and commerce, then go to the local public security organ to go through formalities for staying, register in taxation department and open account in related bank.

Instructions for Applicants on Establishing Projects with Foreign Investments

I) Authority Power Limits in Examination and Approval
In accordance with the regulations concerning the authorities and their limits in examining and approving the applications for establishment of the enterprises with foreign investment promulgated by the State Council and the provincial government, foreign-funded enterprises shall be examined and approved by different-level authorities according to their scale and line of business.


a. Foreign funded projects examined and approved by Ministry of Commerce
1). Projects of the encouraged category and the permitted category in the Guideline of Industries for Foreign Investment with the total investment (including increased investment) not less than 100 million U.S. dollars as well as the projects in limited category with total investment not less than 50 million U.S. dollars.


2). Projects shall be examined and approved by Ministry of Commerce based on state related laws and regulations (such as foreign invested shareholding company, investment company and medical institutions etc).


3). Projects involve in import and export quota and license.
b. Foreign funded projects examined and approved by Provincial Department of Commerce


1). Projects of the encouraged category and the permitted category in the Guideline of Industries for Foreign Investment with the total investment (including increased investment) not more than 100 million U.S. dollars but over USD 30 million (including USD 30 million) as well as the projects in limited category with total investment not more than 50 million U.S. dollars (excluding USD 50 million).


2). Projects shall be examined and approved by Provincial Department of Commerce based on state related laws and regulations or within the power limits authorized (entrusted) by Ministry of Commerce(such as international forwarding enterprise for mail express, partial commercial sectors for foreign investment).


c. Foreign funded projects examined and approved by municipality and prefecture commerce department, the administration committees of Changsha Hi-tech Industrial Development Zone, Changsha Economic and Technical Development Zone and Zhuzhou Hi-tech Industrial Development Zone


Projects of the encouraged category and the permitted category in the Guideline of Industries for Foreign Investment with the total investment not more than USD 30 million (excluding USD 30 million).


The Administration Committee of Changsha Economic and Technical Development Zone may examine and approve the projects authorized by Ministry of Commerce (such as international forwarding enterprise for mail express, partial commercial sectors for foreign investment).

) Registered Capital and Total Investment
The proportions of the registered capital to the total investment stipulated above shall be applicable to all equity or contractual joint ventures and wholly foreign-owned enterprise. Exceptions shall be made only upon approval by the Ministry of Commerce together with the State General Administration for Industry and Commerce. 
 

 

Procedures for Registration of Foreign-Funded Enterprises

I) Business Registration
1. Registration of foreign funded enterprise

Business registration of a foreign-funded enterprise involves two steps: one is the business name registration before the contract and the articles of association are approved, the other is the business operation registration after the contract and the articles of association are approved.


A. For business name registration, an enterprise shall submit the following documents:
a)Pre-examination and approval application of the name of the enterprise with the signature of all the investors. Application for registration signed by the person responsible for its establishment shall include the name and address of the corporation to be established, its business scope, registered capital/ capitalized capital, name of investor and invested capital amount;
b)Certificate of the representative/ deputy appointed by the investors;
c)Certificates for qualifications of the representative/deputy;
d)Certificates for qualification of all investors.
e)The certificates include other documents required by Administration Bureau for Industry and Commerce


B. For business operation registration, an enterprise shall submit the following documents within 30 days after received the approval;
a)Application for business licenses of foreign investment with the signature of legal representative;
b)One copy of approval document of the examination and approval organ;
c)The contract and articles of association;
d)Notice on pre-examination and approval of the name of the enterprise;
e)Investors' qualification certificate or natural person ID certificate. The documents refer to:
Chinese investors shall provide the business license/legal representative registration certificate of the social undertaking institution/ legal representative registration certificate of the social organization/certificate of private-owned non-enterprise institution copied and stamped as the qualification certificate; foreign investors' qualification certificate shall be notarized by the Public Notary of the investor-resided country (region) and verified by Chinese Embassy in the investor-resided country (region). In case the investor-resided country has no diplomatic relations with China, the certificates shall be notarized by the Public Notary of the third country that has diplomatic relations with China, then verified by Chinese embassy in the third country. The investors from Hong Kong, Macao and Taiwan shall provide the qualification and ID certificates notarized in these regions.
f)Copies of position and ID certificates of the directors, supervisors and managers;
g)Copies of appointment and ID certificates of the legal representative;
h)Residence location certificate;
i)For the projects with business scope governed in the state laws and administration decrees as well as the decisions of the State Council, which shall be approved before the registration, the investors shall submit related approval document or license copies or permission certificate;
j)The legal document shall be enclosed with Power of Attorney;
k)  Other related documents and certificates.
Above mentioned document shall be provided with one original copy except for otherwise stated.
In case the above mentioned documents are in foreign language, they shall be translated into Chinese stamped by Translation Company.


C. The branch and agency establishment registration of foreign funded enterprise
The registered foreign funded enterprise for establishing branches and agencies shall submit following documents and certificates:
a) Application for the branch and agency establishment registration signed by legal representative of the parent enterprise;
b) Articles of Association of the Company signed by legal representative of the parent enterprise;
c) The Appointment and ID Certificate of the person in charge of the branch provided by the parent enterprise;
d) Business license and duplicate of the parent enterprise (stamped by the parent enterprise)
e) Certificate of housing and site use for business operation;
f) For the projects with business scope governed under the state laws and administration decrees as well as the decisions of the State Council, which shall be approved before the registration, the investors shall submit related approval document or license copies or permission certificate;
g) Other related documents and certificates.


2. Registration for the establishment of permanent representative agency of enterprises from foreign countries and Taiwan, Hong Kong, Macao Regions
Enterprises from foreign countries and Taiwan, Hong Kong, Macao Regions and other economic entity applying for setting up permanent representative agency in Hunan may register in Hunan Provincial Administration Bureau for Industry and Commerce, with following documents and certificates submitted:.


a). Application for the agency registration signed by chairman of the board or managing director, with the content including foreign enterprise name, permanent agency name, business scope, duration, address, chief representative and staff;
b). Certificate for lawful operation provided by authority in the enterprise located country or region;
c). Enterprise status certificate;
d). Appointment document for the chief representative, deputy and employees;
e). ID card copies and 2 photos of the representative, deputy and employees;
f). Certificate of office address.


3. Production and operation registration of foreign enterprise in Chinese territory
After the production and operation project of foreign enterprise in Chinese territory approved by the examination and approval authority, the foreign enterprise shall register in administration bureau for industry and commerce within 30 days after the approval, with following documents and certificates submitted;


a). Application signed by the chairman of the board or managing director;
b). Approval document or certificate provided by the examination and approval authority;
c). Contract for engaging in the production activity;
d). Certificate for lawful business operation provided by authority in the enterprise located country and region;
e). Certificate of foreign enterprise financial status;
f). Power of attorney, resume and ID certificate for the person in charge of the project in China designated by the chairman of managing director of foreign enterprise;
g). Other related documents.


4. Registration modification, cancellation and annual examination of foreign funded enterprise
The main registration issues modification of foreign funded enterprise and its branches and agencies shall have modification application submitted to the original registration authority for approval.
The termination and expiry of foreign funded enterprise, approval certificate invalidity, contract termination approved by examination and approval authority, shall have application submitted to the original registration authority for cancellation.
Foreign-invested enterprise and its branches should receive annual exam between March 1st and June 30th every year according to the requirement of the company's registration organ.


II) Tax Registration
1. Foreign-funded enterprise with its branches or a foreign enterprise with its permanent representative office should register in the local tax authorities within 30 days after it obtains the business license. For tax registration, the foreign-funded enterprise or the foreign enterprise shall submit the business license, the national unified code certificate, the copies of contract and articles of association and the legal person ID card or passport. Then fill in two copies of the tax registration form (obtained in the taxation department or downloaded from Hunan state taxation webpage) and proceed to the taxation department to register. The tax authorities will issue to the enterprise the certificate of tax registration after they have verified these documents.


2. In case a foreign-funded enterprise and its branches or a foreign enterprise and its permanent office change its tax registration during the production and operation, it, with necessary documents, shall proceed to the tax authorities for making changes or cancellation in the tax registration in 30 days after the industrial and commercial administration has handled formality change or before it applies for taxation cancellation to the industrial and commercial administration.


III) Fiscal Registration
A foreign-funded enterprise should register in the local department of finance within 30 days after it obtains the business license by presenting following documents:

a) Approval certificate;
b) Business license;
c) the investment-amount certificate;
d) Contract and articles of association of the enterprise (duplicates);
e) Financial and accounting system of the enterprise adopted by the board of directors;
f) Effective qualification certificates of the enterprise's accounting personnel;
The department of finance will issue to the enterprise a fiscal registration certificate and its duplicates after the procedures have been duly completed.


The foreign-funded enterprise should submit their accounting statements on scheduled time to the financial department, and subject themselves to the supervision and management of the financial department.


If it divides, unites or sets a branch, the enterprise is required to register at the local administration of industry and commerce; and in 30 days, it still should submit to the local financial authority its registration documents, duplicates and copies to go through corresponding financial procedures. After dissolution and liquidation, it is required to submit to the local financial department its liquidation report, its original auditing report, duplicate and copy made by a Chinese CPA to cancel its fiscal registration, prior to cancellation of its business registration.

 

Social and Labor Insurance in Hunan

1. The social insurance develops in an all-round way.
Including the retirees in enterprises of 1,850,200, up by 2.61 compared with 2007, a total of 4,365,900 people have been covered in the basic social insurance system, up by 8.93%.  The unemployment insurance system covers 3,901,200, up by 0.33% and as many as 6,820,100 people enjoy the medical insurance, up by 9.9%. The government gave out pension worth RMB 19.874 billion Yuan to the enterprise retirees, up by 28.97%, and paid for 237,000 unemployed people, up by 36.99%. 799,900 people included in the medial insurance system went to hospital for treatment, up 27.6%; the average individual payment was 27.33%, down 2.3%.


2. Foreigners work in Hunan
In accordance with Stipulations of Administration for Foreigners Employment in China and Measures of Hunan Province in Implementation of Stipulations of Administration for Foreigners Employment in China, the foreigners employment in Hunan shall implement the employment license system (foreigners refer to those who have not owned Chinese nationality based on the rules of the Law of Nationality of P. R. China, foreigners employment in Hunan refers to the foreigners who have not obtained the right of residence in Hunan but engaged in society work and obtained work payment in Hunan's administrative region). The foreigner employment license system is applicable to the foreigner employment in Hunan and the organizations with employed foreigners. Hunan Provincial Department of Labor and Labor's Social Insurance shall set up a special organ in charge of the management of foreigner employment in Hunan.


(1). Operation procedures
In case the organizations employ foreigners, such employment application shall be submitted and approved by authorities in charge. The foreigners with approval for employment in Hunan may hold the approval certificate and invitation signed by organizations entitled to handling foreign affairs, and proceeds to Chinese embassy and consulate to apply for working visa. After entry, the foreigners may apply to obtain the Employment Certificate, and then apply to obtain Residence Certificate in the local police office.


(2). Foreigners Employment in Hunan shall meet following conditions:
a. Aged 18 or above, in good health;
b. Possessing professional skill and related working experience needed in his employment post;
c. Proof of no criminal record
d. Organizations' confirmation for the employment
e. Valid passport or other international travel document which can replace the passport


(3). Application documents for approval of foreigner employment
a. Employer's invitation
b. Letter of Intent for the employment or contract
c. Foreigners working experience and education background
d. Work Qualification Certificate of the Foreigners for the Employment
e. Health Status Certificate
f. Proof of no criminal record
g. Qualification documents of the employer (the business license, code, tax registration certificate, approval certification)
h. Power of attorney of the legal person in the employer, ID care of the authorized person


3. Instructions on social insurance administration for foreign-invested enterprises:
(1) Registration procedure. The enterprise should register in the local social insurance administrative institution to underwrite for social insurance. The registration consists of: name of the institution, address, operation site, type of institution, legal representative or person in charge, opening bank account number and other prescribed affairs.


(2) Application procedure. The enterprise should report the amount of social insurance fee to the social insurance administrative institution every month and after checked by it, pay the fee before the prescribed deadline.


(3). Payment procedure. The enterprise and employee should pay the social insurance fee in full amount and in the form of currency. The amount that is paid by the employee is deducted by the enterprise in his salary. Social insurance fee is not allowed for exemption.


(4). The enterprise that does not handle social insurance for the employee should make up before the deadline prescribed by the labor administrative department; the enterprise that does not pay items of social insurance on schedule should pay overdue fine that is calculated on the basis of 2% of the social insurance amount per day since the deadline. The overdue fine is transferred into items of social insurance fee.

 

Instructions on Entry and Exit Administration

1. The administrative procedures of entry and exit concerning foreigners:
(1)
The foreigner may apply to Chinese embassy and consulate or the port administration for visa. He may proceed to the local police office to apply for extension after the visa expires.
(2). When the foreigner proceeds to the entry & exit department in the local police office for visa and residence permission, he is required to submit following documents:
a. Submit the passport, the visa and relevant effective certificate concerning international travel, including diplomatic, public affair passport, the extension of which is handled by the foreign affairs department;
b. Fill in the visa and residence application form and submit a recent bust bareheaded picture of 2 inches.
c. Submit certificates concerning the visa and residence permit
With relevant official documents, the investors and the legal representatives in the enterprise may obtain 2 years of effective residence permit, and the average personnel may obtain 1 year of residence permit.  .


2. The administrative procedures of entry and exit concerning Taiwan residents
(1)Application for visa endorsement related to multi-entry and exit: The applicant shall proceed to the administrative department of entry and exit of the Public Security Bureau in the county or city where they reside for the return, multi-entry and stay extension permit.  The applicant shall go through following procedures and shall answer the inquiries:
a. Submit a valid Certificate for Taiwan Residents Entry and Exit of China's Mainland;
b. Fill in Application Form of Taiwan Residents Entry and Exit of China's Mainland and Pass Endorsement;
c. Submits a recent bust bareheaded photos of 2 inches.
d. Submit relevant certificate originals and duplicates concerning the application
(2)Application for residence endorsement:
The application for residence endorsement shall be handled by the administrative department of entry and exit of the Public Security Bureau in the county or city where the applicant resides. The endorsement validity period is from 1 to 5 years in accordance with the applicant's detailed situation.


3. Application for a business visit abroad or to Hong Kong & Macao by the Chinese partners in Chinese-foreign joint ventures, solely foreign-funded enterprises.
(1) Business visit to Hong Kong and Macao:
The enterprise which pays an annual tax of more than RMB 200,000 Yuan or creates foreign exchanges of more than US$ 200,000 as well as the enterprise which is in need of a business visit and have potential in high technology development and conforms to Hunan province's industrial policy, may apply to the administrative department of entry and exit of the Public Security Bureau in the county, or in the prefecture or city (if the county bureau is not entitled), where the enterprise is located for registration for the Grade A Enterprise. The enterprise which pays an annual tax of more than RMB 10,000 or can provide foreign-exchange-earning certificate or the enterprise's permanent agency and office in Hunan may apply to the administrative department of entry and exit of the Public Security Bureau in the county, or in the prefecture or city (if the county bureau is not entitled), where the enterprise is located for registration for the Grade B Enterprise. The personnel in Grade A may obtain effective business visa of "Multi- entry in a Year", "Multi- entry in Three Months", "One-entry in Three Months", The personnel in Grade B may obtain visa of "Multi- entry in Three Months", "One-entry in Three Months", The personnel in non-record enterprise may obtain visa of "One-entry in Three Months" according to the actual demand. The effective business visa of "Multi- entry in a Year" shall be applied to and approved by the administrative department of entry and exit of the Public Security Bureau in the prefecture or municipality where the applicant resides. The visa of "Multi- entry in Three Months" and "One Entry in Three Months" can be applied to and approved by the administrative department of entry and exit of the Public Security Bureau in the prefecture or municipality where the applicant resides. At present, the administrative department of entry and exit of the Public Security Bureau in all the prefecture-level cities can examine and approval "Multi- entry in Three Months" effective business visa. Business visits to Macao shall be examined and approved by the administrative department of entry and exit of the Provincial Department of Public Security for visa issue.


(2). Going abroad for Business visit. With the personal residence card, identity card, ID card, the local police station's opinion or employer's approval, the Chinese partner in the enterprises, due to business demand, may apply to the administrative department of entry and exit of the Public Security Bureau in the county or city where the enterprise is located for the passport. The residents in the cities, where the passport is applied and issued according to the individual's actual demand, can be exempted from the opinion and approval from the police station and employers. Their passports are examined and issued by the entry and exit administration department of the prefecture or municipal Bureau of Public Security.

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