Business-starting Investment Enterprises
BIZCHINA / Company laws
Provisions Concerning the Administration of Foreign-funded
Business-starting Investment Enterprises
Updated: 2006-04-17 10:37
Chapter II Establishment and Registration
Article6 To establish an FBIE, the following requirements shall be met:
(1) There are more than 2 but less than 50 investors, and at least one
shall be an indispensable investor as stated in Article7;
(2) The investors of a non-legal-person organization shall subscribe to a
minimum total contribution in the sum of 10, 000, 000 U.S. $. The
investors of an incorporated FBIE shall subscribe to a minimum total
capital in the sum of 5, 000, 000 U.S. $. Except for the indispensable
investors as provided in Article7, each of the other investors shall
subscribe to a minimum capital contribution no less than 1, 000, 000
yuan. Foreign investors may contribute their investments in convertible
currencies and Chinese investors may contribute their investments in
Renminbi.
(3) It shall have definite organization form;
(4) It shall have a definite and legitimate investment direction;
(5) Except that the operations of such an enterprise are subject to the
management of a business-starting investment management company under
authorization, an FBIE shall have at least 3 professional managerial
persons who have practical experience in business-starting investment;
(6) It shall meet the other requirements as provided in laws and
administrative regulations.
Article7 An indispensable investor shall meet the following requirements:
(1) Business-starting investment is its main business;
(2) The accumulative total capital managed by it in the three years
before the application is not less than 100, 000, 000 U.S. dollars, and
of which no less than 50, 000, 000 U.S. dollars have been used in
business-starting investment If the indispensable investor is a Chinese
investor, the accumulative total capital managed thereby in the three
years before the application is submitted is not less than 100, 000, 000
Yuan, and of which no less than 50, 000, 000 yuan have been used in
business-starting investment;
(3) It shall have at least 3 professional managerial persons who have
practical experience in business-starting investment;
(4) If the affiliated entity of an investor meets the above-mentioned
requirements, the investor may apply for the status of an indispensable
investor. The term "affiliated entity" in this paragraph refers to an
entity controlled by the investor, or an entity that controls the
investor, or another entity that subject to the control of the same
entity that controls the investor. The term "control" in this paragraph
means that the controlling party has a voting power of more than 50 %
over the controlled party.
(5) Neither the above-mentioned indispensable investor nor its affiliated
entity shall have any record of being prohibited from engaging in
business-starting investment or business of investment consultancy, or
being punished for the reason of cheat, by the judicial departments and
other relevant agencies of the country where it is located;
(6) An indispensable investor of a non-legal-person enterprise shall
subscribe to and actually pay not less than 1 % of the subscribed
contributions and the actual total contributions respectively, and it
shall bear joint liabilities for the debts of this enterprise. An
indispensable investor of an incorporated FBIE shall subscribe to and
actually pay not less than 30% of the subscribed contributions and the
actual total contributions respectively.
Page: 1 2 3 4 5 6 7 8 9 10 11 12 13
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� Luxury cars are big boys' toys
� Full speed ahead for Shanghai express
� Godfather of information industry
� Individual gold transactions in China brisk
� China closes over 2,600 enterprises
Today's Top News
� 'SCO not an eastern version of NATO'
� 9.5 million sit college exam this year
� Tianjin gets the nod for new-area plan
� Malformed baby has third arm removed
� Doctors remove third arm from boy
Top Biz News
� Three Gorges Dam takes the strain
� China speeds up credit rating of foreign trade companies
� Scientists to help achieve goal of innovation nation
� Nuke fusion reactor gives a headstart
� China, Arab nations sign action plan
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Learn Chinese
