Promulgated by: The Ministry of Construction and Ministry of Foreign Trade and Cooperation
Order No. 116
Promulgated on: 13 February 2003
Effective from: I may 2003
Article 1. These Provisions are formulated in accordance with the Law of the People's Republic of China Concerning Solely Foreign-funded Enterprises, the Law of the People's Republic of China on Sino-foreign Equity joint Ventures, the Law of the People's Republic of China on Sino-foreign Co-operative Enterprises, and the Law of the People's Republic of China on Urban Planning, in order to expand the open-door policy, to regulate urban planning service enterprises with investment from foreign companies, enterprises and other economic organizations and individuals, and to
strengthen the administration of urban planning service activities conducted by foreign investment urban planning service enterprises.
Article 2. These Provisions apply to the establishment of foreign investment urban planning service enterprises within the territory of China, the application for Qualification Certificates of Foreign Investment Enterprises Engaging in Urban Planning Services, and the supervision and administration of foreign investment urban planning service enterprises.
Article 3. The term "foreign investment urban planning service enterprises" used in these Provisions means Sino-foreign equity joint ventures, Sino-foreign cooperative enterprises and solely foreign-funded enterprises which are established in the People's
Republic of China in accordance with the law to engage in urban planning services.
The term "urban planning services" used in these Provisions refers to activities relating to the drawing up of and consultation on urban planning other than overall urban planning.
Article 4. Foreign companies, enterprises and other economic organizations and individuals which intend to engage in urban planning services in China shall establish Sino-foreign equity joint ventures, Sino-foreign cooperative enterprises or solely
foreign-funded enterprises in accordance with the law, and shall obtain a Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services.
These bodies shall not engage in urban planning services without a Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services.
Article 5. The administrative department in charge of foreign trade and economics of the State Council is responsible for the administrative work relating to the
establishment of foreign investment urban planning service enterprises; the administrative department in charge of construction of the State Council is
responsible for the administrative work relating to the qualification of foreign investment urban planning service enterprises.
The administrative departments in charge of foreign trade and economics of the people's governments in provinces, autonomous regions and directly administered municipalities shall be responsible for the preliminary examination work for the establishment of foreign investment urban planning service enterprises in their respective administrative jurisdictions; the administrative departments in charge of urban planning of the people's governments at county level and above shall be responsible for the supervision and administration of the urban planning service
activities conducted by foreign investment urban planning service enterprises within
their respective administrative jurisdictions.
Article 6. The establishment of a foreign investment urban planning service enterprise
shall, in addition to satisfying the conditions stipulated in the relevant laws and
regulations of China on foreign investment enterprises, meet the following conditions:
(1) the foreign party is an enterprise or technical professional that engages in urban
planning services in its home country or region;
(2) at least 20 technical professionals in such specialities as urban planning,
construction, road transportation, landscaping and relevant engineering; the number of
foreign technical professionals shall not be lower than 25 per cent of the total number of technical professionals, and at least one foreign technical professional in each of the following specialities: urban planning, construction, road transportation and landscaping;
(3) technological facilities that comply with the provisions stipulated by the State, and a fixed business venue.
Article 7. Those that apply for the establishment of a foreign investment urban planning service enterprise shall apply to the State Administration for Industry and Commerce or the local administrative bureaus of industry and commerce that are authorized by the State Administration for Industry and Commerce, for verification and approval of the name of the proposed foreign investment enterprise.
Article 8. An applicant, after having obtained approval for the name of the proposed foreign investment urban planning service enterprise, shall apply for the establishment of a foreign investment urban planning service enterprise with the administrative department in charge of foreign trade and economics of the people's government in the province, autonomous region or directly administered municipality where the
proposed enterprise is to be located, and shall submit the following materials:
(1) an application for the establishment of a foreign investment enterprise signed by the legal representatives of the investing parties;
(2) a feasibility study report, a project proposal and a plan for the establishment of the enterprise (including the allocation of professional staff, technological equipment plan and floor space of the business venues), which are drawn up or approved by the investing parties;
(3) the foreign investment enterprise contract and the articles of association signed by the legal representatives of the investing parties (solely foreign-funded enterprises to provide articles of association only);
(4) the notification letter of the advance approval of the enterprise's name;
(5) the legal person registration certificates of the investing parties, and the bank credit certification of the investing parties;
(6) appointment and certification documents of the chairperson of the board of directors, members of the board of directors, managers and persons in charge of engineering techniques, etc;
(7) the assets balance sheets and profit and loss statements of the investing parties for the past three (3) years which have been audited by registered accountants or an accounting firm;
(8) the enterprise registration certificates of the foreign investors certifying the engagement of the investors in urban planning services and bank credit certification in their home countries or regions; and
(9) documents certifying the experience and achievements in providing urban planning services from government department in charge, trade association, society or notarization organization in the home countries or regions of the foreign investors.
Article 9. The administrative department in charge of foreign trade and economics of the people's government of the province, autonomous region and directly administered municipality shall complete the preliminary examination within 30 days from the date of receipt of the application and upon the granting of consent at the preliminary examination, shall report it to the administrative department in charge of foreign trade and economics of the State Council.
Article 10. The administrative department in charge of foreign trade and economics of the State Council shall, within 10 days from the date of receiving the application materials that have passed the preliminary examination, send the application materials to the administrative department in charge of construction of the State Council for consultation. The administrative department in charge of construction of the State Council shall give its opinions within 30 days from the date of receipt of the application materials. The administrative department in charge of foreign trade and economics of the State Council shall, within 30 days from the date of receipt of the written opinion of the administrative department in charge of construction of the State Council, make a decision to approve or reject the application. Where approval is granted, an approval certificate of a foreign investment enterprise shall be issued; where the application is rejected, a written statement of the reasons shall be given.
Article 11. An applicant shall, after having obtained the approval certificate of a foreign investment enterprise, carry out industry and commerce registration procedures for the enterprise and the procurement of a business license in accordance with the law.
Article 12. An applicant shall, after having obtained the legal person business licence, apply to the administrative department in charge of construction of the State Council for a Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services.
Article 13. Applicants for a Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services shall provide the following documents:
(1) an application form for a Qualification Certificate of Foreign Investment Enterprises;
(2) the certificate of approval of the foreign investment enterprises;
(3) the legal person business license of the enterprise;
(4) the employment contracts with the technical professionals and materials certifying their professional qualifications, which have been entered into the records of the department of labor and human resources; and
(5) materials concerning the technological equipment of the enterprise.
Article 14. A foreign investment urban planning service enterprise shall, within 30 days from the date of having obtained the Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services, file to be entered into the record with the administrative department in charge of urban planning in the city or county in which it has been registered.
Article 15. Where a foreign investment urban planning service enterprise has contracted to perform urban planning services work outside the registration place of the enterprise, it shall apply to be recorded with the competent administrative department in charge of urban planning in the city or county where the contracted work is to be performed.
Article 16. All materials submitted by an applicant must be written in the Chinese language; where certification documents are in a foreign language, a Chinese translation must be attached.
Article 17. When engaging in urban planning services, a foreign investment urban planning service enterprise shall abide by the relevant laws, regulations, technical criteria and standards of China on urban planning.
Article 18. Every foreign technician employed by a foreign investment urban planning service enterprise shall maintain residence in China, on an accumulated basis, for at least six (6) months each year.
Article 19. The administrative department in charge of construction of the State Council shall conduct annual inspection of foreign investment urban planning service enterprises which have obtained the Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services. Those that do not meet the requirements shall have their Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services revoked.'
Article 20. Where a Chinese unit that has obtained the Qualification Certificate of Unit Engaging in Drawing Up Urban Planning has established a Sino-foreign joint equity or Sino-foreign cooperative urban planning service enterprise after reorganization or restructuring, it shall return the Qualification Certificate of Unit Engaging in Drawing Up Urban Planning.
Article 21. A foreign investment urban planning service enterprise shall return its Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services when it has stopped doing business, suspended or closed down.
Article 22. The commissioning of an urban planning service task to a foreign investment enterprise that has not acquired the Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services is strictly prohibited.
The commissioning of an overall urban planning service task to a foreign investment enterprise is strictly prohibited.
Article 23. Those who undertake to perform urban planning service tasks without holding a Qualification Certificate of Foreign investment Enterprises Engaging in Urban Planning Services shall be ordered by the administrative department in charge of urban planning of the people's government at country level or above t cease the illegal activities and to pay a fine of not less that 10,000 yuan and not more than 30,000 yuan. Any results achieved shall not be approved by the relevant department.
Article 24. Where a foreign investment urban planning service enterprise engages in the services of drawing up the overall planning of a city in violation of the stipulations of these Provisions. It shall be ordered by the administrative department in charge of urban planning of the people's government at country level or above to rectify the situation; where the circumstances are serious, the certificate issuing authority shall revoke the Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services.
Where a foreign investment urban planning service enterprise has obtained the Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services by means of deception or fraud, the qualification certificate shall be revoked by the certificated issuing authority.
The certificate issuing authority, after having recovered the qualification certificate, shall notify the registration authority. The enterprise whose qualification certificate has been revoked shall apply to the registration authority for cancellation of registration; if it fails to cancel the registration, the registration authority shall handle the matter in accordance with the law.
Article 25. where, in violation of these provisions, urban planning service tasks are entrusted to a foreign investment enterprise that does not hold a Qualification Certificate of Foreign Investment Enterprises Engaging in Urban Planning Services, or overall planning service tasks have been entrusted to a foreign investment urban planning service enterprise, the organ at the nest level up shall rectify the situation. The administrative duty of the person in charge shall be investigated in accordance with the law; where a crime has been committed, criminal liability shall be pursued.
Article 26. The administrative department in charge of construction of the State Council and the administrative department in charge of foreign trade and economics of the State Council shall be responsible for the interpretation of these Provisions in accordance with their respective duties and responsibilities.
Article 27. These Provisions shall apply to investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region which invest in Mainland China to establish urban planning service enterprises.
Article 28. These Provisions shall take effect from 1 May 2003.
This translation, together with any explanatory material, is provided courtesy of Lehman Tax & Accounting.
