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Author Topic: Formation of FICE in Shanghai  (Read 119 times)

Offline Shaccouse

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Formation of FICE in Shanghai
« on: July 02, 2017, 06:28:58 AM »
Starting from 1 December 2004, a new investment vehicle has been available to foreign investor – Chinese government allow and encourage foreign investor to set up “Foreign Invested Commercial Enterprise” (FICE) in China to conduct wholesale, retail, and other permitted businesses. A FICE entity possesses the total rights of trading. It can conduct importation and exportation of non-self produced products solely by itself; instead of going through an import/export agency company.

Furthermore, from 1 March 2006, the law permits FICE to apply and obtain approval documents from the local municipal Foreign Economic Relation and Trade Commission, instead of from Ministry of Commerce in Beijing.

The FICE is a limited liability company wholly owned by foreign investor. The liability is limited by the amount of registered capital injected into the entity. The FICE is able to implement strategies that effectively conform to the interests of the parent company so long as they comply to the laws of China.

To establish a FICE in Shanghai, the foreign investor has to submit the required incorporation documents to various authorities for registration. It is advisable for the investor to entrust an authorized consulting body or agency to do the tedious submission and application processes.

Investor

The foreign investor may be a foreign company, enterprise, other economic organization, or a natural person.
(1) For a company/enterprise, the Certificate of Incorporation, Bank Reference Letter, and Audit Report for the recent one year are required.
(2) For a natural person, the Identity Certificate and Bank Reference Letter are required.

• the Certificate of Incorporation/Identity Certificate—-certified by the notary organ and the Chinese Embassy in your country
• the Bank Reference Letter—- issued by the bank in which foreign investor has a working or trading account and signed by an authorized bank officer

Capital Contribution

FICE’s minimum registered capital shall conform to relevant provisions of the Company Law. The registered capital should be able to support the expected scale of the FICE’s business.

The investor is allowed to contribute registered capital in cash, in kind, or technology/intellectual property rights, or other non-monetary properties that may be assessed on the basis of currency. The amount of the capital contribution in cash shall be no less than 30% of the registered capital.

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