Investment Mode

Foreign-owned Enterprise

　　Enterprises established in Pukou Economic Development Zone by foreign or overseas companies, enterprises, other economic organizations or individuals, and capital from beyond Chinese borders are called foreign-owned enterprises. Branches of foreign enterprises and other economical organizations in china are not included. The profits of the enterprises are completely owned by foreign investors.

Joint venture enterprise

　　The joint venture enterprises, which are established jointly by foreign or overseas companies, enterprises and other economic organizations or individuals and Chinese companies, enterprises or other economic organizations according to the principle of equality and mutual benefit under the approval of Chinese government, are limited liability companies with Chinese corporate entity. The parties of the joint venture jointly negotiate the investment ratio (however, the investment from the foreign party shall not be less than 25%) to invest and operate jointly with shared risk and profit. The parties of the joint venture can invest in cash, building, workshop, equipment or other material, industrial property, exclusively-owned technology, as well as right to the use of a site, which serve as respective shares of the parties. The returns are distributed in accordance with the ratio of investments in the registered capital.

Companionship enterprise

　　The companionship enterprises are contractual joint undertakings where the responsibilities, rights and obligations of cooperative parties are prescribed in agreements or contracts. The contacts, which should be approved by Chinese government, are subject to the protection and jurisdiction of Chinese laws. The general practice of a companionship enterprise is that: the Chinese party provides the land use right, labor force and labor service or currently available buildings, equipment and materials in an agreed management mode and profit distribution mode and proportion (the investment from the foreign investor is usually above 25% of the registered capital of the companionship enterprise.) under the principle of equity and mutual benefit. The main differences between companionship and joint venture are that: the companionship enterprise neither necessarily calculates shares in accordance with currency nor distributes returns according to share proportion; instead, it distributes returns according to agreed investment mode and distribution proportion.

Procedure of Investment

Flow of Investment

Application Data

Documents Submitted for the Application of Enterprise Establishment (four copies)

　　1. Investment application form (only for foreign-owned enterprises) and application report

　　2. Contract and articles of incorporation (foreign-owned enterprises do not need submitting the contract.)

　　3. Research report of feasibility

　　4. List of members of board of directors, appointment letters and IDs, appointment letters and IDs of general manager and deputy general manager, vita and 3 “1×1” recent photos of chairman of the board of directors, 3 “1×1” recent photos of liaison officer

　　5. Photocopy of legal business establishment certificate (personal ID card for individual investors) issued by the host country of investors

　　6. Certificate of creditworthiness

　　7. Tenancy contract or purchase contract of business place

　　8. Notice of prior approval of business name

　　9. Official and written reply to the environmental appraisal

　　10. Necessary other complementary documents demanded by authorities of examination and approval

Documents Submitted for Enterprise Name Registration

　　1. 1~3 enterprise names representing its main business available

　　2. Application form for prior approval of names

　　3. Legal business establishment certificate or ID certificate of investors

　　4. Project proposal or feasibility report and its document of approval for limited projects and other projects requiring reporting to higher authorities for examination and approval

Flow of preparation for construction.