On December 25, the Shanghai Municipal Commission of Commerce issued a notice on the approval, filing and reporting of foreign enterprises. See the attached picture for details.

Cancel Approval of Foreign Investment Enterprises

Cancel approval of foreign investment enterprises implemented from January 1, 2020, includes foreign enterprise approval, record, report and other matters.

Cancel Approval of Foreign Investment Enterprises

On December 25, the Shanghai Municipal Commission of Commerce issued a notice on the approval, filing and reporting of foreign enterprises. See the attached picture for details.

Translation of Notice Content

Shanghai Municipal Commission of Commerce

Notice:

will come into effect on January 1, 2020. The relevant matters are hereby announced as follows:

1.Starting from January 1, 2020, the Shanghai municipal commission of commerce and the administrative committee of the Shanghai pilot free trade zone will no longer accept the examination and approval items concerning the establishment and alteration of foreign-invested enterprises or reinvested enterprises involved in the implementation of the special administrative measures for foreign investment access (negative list) stipulated by the state.

2.Since January 1, 2020, does not involve the regulations of the state, the implementation of the foreign investment access special management measures of enterprises with foreign investment need not apply to the competent commercial departments register put on record, if on December 31, 2019 has been on the market supervision and regulation department established the registration or alteration registration of the enterprise, but has yet to deal with, you can still apply for use of foreign investment from management system, and for the record.

3.Since January 1, 2020, the registration of enterprises with foreign investment to set up, change, to the competent department of commerce shall be via the online registration system is initialized, change the report, should foreign investors or foreign invested enterprises every year through the national enterprise credit information publicity system annual report to the competent department of commerce, annual audit report.

4.Enterprises with foreign investment shall, in accordance with the relevant provisions of the statistical reporting system for foreign investment in Shanghai, continue to submit the statistical reporting of the operation of enterprises with foreign investment online on the 17th day of each month.Enterprises with foreign investment may go through the business affairs section of the official website of the commission of commerce (sww.sh.gov.cn), log in Shanghai foreign investment information management system to fill the reports and business information.

– Shanghai Municipal Commission of Commerce
– 2019/12/25

Original source of the notice: http://sww.sh.gov.cn/zxxxgk/247485.htm

What Happens for the Reforming of Cancel Approval of Foreign Investment Enterprises?

From SMEsChina experience, once the Shanghai municipal commission of commerce implement the regulation of cancel approval of foreign invested enterprise, means the foreign companies can register a private business quicker, according to the previous policy, foreign companies who want to set up a limited company in the mainland China, they have to obtain the certificate of business registration of foreign owned enterprises first, then can get the approval of registering a business here, this process normally needs 5 working days as following timeline table. If cancel the approval of foreign invested enterprise, you can skip this step and get the 5-in-1 business licenses at once.

After the implementation of canceling the approvals of foreign investment enterprises, the foreign businesses will enjoy the same policy of business registration system with local investors and citizens, the whole processing will be the same as local companies, this regulation demonstrates China’s determination and confidence to further open up and actively promote foreign investment. It will help protect the legitimate rights and interests of foreign investment, create a law-based, internationalized and convenient business environment, promote the formation of a new pattern of all-round opening-up, and realize the goal of promoting high-quality economic development through high-level opening-up.

Description of Each Step:Time Required:
Chinese company name submit, search and obtain approval3 working days
Download and signature of the required documents of company formation and courier to SMEsChina5 working days
Obtain the certificate of foreign owned (investment) enterprise and the certificate of business registration (known as: business license), Cancel Approval of Foreign Investment Enterprises, skip to foreign enterprise certificate to register business license directly.5 working days
Apply for the company stamps (known as corporate seals) and obtain approval2 working days
Open a local corporation bank account and internet banking5 working days

It is undeniable that canceling the approval items of foreign-funded enterprises is an epoch-making milestone, which increases the confidence of foreign investors, and also strengthens the further improvement of the business registration system, which is of great significance to China’s foreign investment industry.

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