Foreign Direct Investment

Minimum Registered Capital       
Under the new Company Law, companies in the mainland are mainly incorporated in the form of limited liability companies or joint-stock limited companies. For limited liability companies, the minimum registered capital is lowered to Rmb30,000. For joint-stock limited companies, the minimum registered capital requirement is Rmb5 million.

According to the existing rules of government authorities overseeing different sectors, the following requirements are applied to FIEs concerning minimum registered capital:

 

The minimum registered capital of a JV commercial enterprise engaged in wholesale or retail should comply with the requirements of the Company Law. The new Company Law stipulates that the minimum registered capital of limited liability companies is Rmb30,000, while the minimum registered capital of joint-stock limited companies is Rmb5 million. The ratio of the registered capital to the total investment amount should be in line with the Provisional Regulations of the State Administration of Industry and Commerce Governing the Proportion of Registered Capital to the Total Investment Amount of Sino-Foreign JV Enterprises
The minimum registered capital of a foreign or JV bank is Rmb300 million worth of freely convertible currencies
The minimum registered capital of a foreign or JV financial institution is Rmb200 million worth of freely convertible currencies
The minimum registered capital of a JV travel agency is Rmb2.5 million
The minimum registered capital of a JV advertising agency is US$300,000
The minimum registered capital of a JV foreign trade company is Rmb50 million
The minimum registered capital of a JV international freight forwarding agency is US$1 million
The minimum registered capital of a foreign-invested printing company engaged in the printing of publications and printed materials for packaging is Rmb10 million, while the minimum registered capital of a foreign-invested printing company engaged in the printing of other printed materials is Rmb5 million
The minimum registered capital is Rmb2 billion for a company engaged in trans-provincial basic telecom business; Rmb200 million for a company engaged in provincial basic telecom business; Rmb10 million for a company engaged in trans-provincial value-added telecom services; and Rmb1 million for a company engaged in provincial value-added telecom services
The minimum registered capital of a foreign-invested insurance company is Rmb200 million or its equivalent in freely convertible currency
The minimum registered capital of a foreign-funded investment company is US$30 million
The minimum registered capital of a foreign-funded investment shareholding company is Rmb30 million.
 

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