Category: Doing Business In China

Source: The State Council – The People’s Republic of China

What is investment and reinvestment?

What are the measures China uses to promote foreign investment?

What procedures should foreign investors follow to set up FBIE?

Modification registration of foreign-funded enterprises in China

Registration of foreign-funded companies in China

 

 

Source: The State Council – The People’s Republic of China

Foreign direct investment refers to the activity where residents in one country set up a business in another country, or residents of one country acquire major stake and managing shares of an enterprise in another country, with general benchmark of the purchase being at least of 10 percent.

Foreign direct investment does not include the following activities: licensing, subcontract and security portfolio investment, because they do not involve large amount of equity capital, or a significant shift in terms of foreign management control.

Reinvestment refers to any increase in a foreign investor’s shares to the existing investment, including reinvestments on profits and inflows of new capital.

Foreign investors can be either an individual, or a company; its investment can be either wholly foreign-funded, or from a foreign and domestic joint venture.

More Doing Business In China: Registration of foreign-funded companies in China