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What are the regulations concerning enterprises with less than 25% of the registered capital being contributed by foreign parties?

What are the regulations concerning enterprises with less than 25% of the registered capital being contributed by foreign parties?

On the 30th December 2002, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), the State Administration of Taxation, the State Administration for Industry and Commerce (SAIC) and the State Administration of Foreign Exchange (SAFE) jointly issued a notice primarily dealing with issues relating to enterprises comprising less than 25% registered capital from a foreign party. As of the 1st January 2003, enterprises with less than 25% foreign investment are to be classified as Foreign Invested Enterprises (FIEs). As such, their approval certificates and business licenses now state that they are a "foreign equity of less than 25%".

 

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