Circular of the MOFCOM on Further Simplifying and Regulating the Administrative Licensing of Foreign Investment

Shang Zi Han (2008) No. 21

Commercial departments of all provinces, autonomous regions, municipalities directly under the Central Government, separately planning cities and Xinjiang Production and Construction Corp.,

For the purposes of further changing the functions of government, simplifying and regulating the administrative licensing procedures for foreign investment, the relevant issues are hereby notified as follows:

Article 1 With respect to a foreign-invested enterprise established upon approval of the MOFCOM according to legal provisions, its non-material changes (including  changes of name of the foreign-invested enterprise, names of its investors, its business address in the same city, the number of directors and the statutory business period) shall be reviewed and approved by the commercial departments at provincial level entrusted by the MOFCOM, and the commercial departments at provincial level shall submit the copies of their replies and approval certificates to the MOFCOM for filing after approval.

Article 2 According to the decision of the State Council on the reform of investment system, the issues concerning the change of a foreign-invested enterprise which is established upon approval of the MOFCOM originally with the amount of investment below the prescribed limit shall be approved by the commercial departments at provincial level according to law (exclusive of the foreign-invested enterprises engaged in investment or concerning special provisions, policies of specific industries or industries under national macro-regulation), and such departments shall report the change to the MOFCOM for filing.

Article 3 The MOFCOM will establish a spot-check system and notify the name of the enterprises for spot-check to the commercial departments at provincial level every month. The commercial departments at provincial level shall, within five working days upon receipt of the notice, submit the copies of the relevant materials of the selected enterprises which have been reviewed and approved according to Article 1 and 2 herein to the MOFCOM (Department of Foreign Investment Administration, FIA) by express.

Contact address of the MOFCOM for submission of materials:

FIA Service Counter, Governmental Hall, MOFCOM, No. 2 Dong Chang’an Avenue, Beijing 100731

Contact person: Zeng Ming

Tel: 65197387 65197852

Article 4 If a commercial department is discovered having made review and approval in violation of provisions twice in spot-check, the MOFCOM will circulate a notice of criticism on it in the commercial system and order it to make corrections in a limited period; and if it fails to make any correction in the limited period, the MOFCOM will withdraw its entrustment.

Article 5 The Circular shall enter into force on the date of promulgation.

Ministry of Commerce of the People’s Republic of China

Aug.26, 2008