Circular on the Issues concerning the Administrative Work of the Foreign Investment (MOFCOM Circular No.72)
商务部关于外商投资管理工作有关问题的通知 [2011] 72号
Released and effective on February 25, 2011
On February 25, 2011, Ministry of Commerce ("MOFCOM") promulgated a circular on the Issues Concerning the Administrative Work of the Foreign Investment ("Circular"). The Circular mainly provides that
-
the administrative approval of the change of the foreign-invested enterprise's ("FIE") legal address, company name, and investor's name is now cancelled. FIE can directly file these changes with the competent company registration authorities (SAIC). Thereafter, the competent commerce authorities (MOFCOM) shall re-issue the approval.
-
Subject to the MOFCOM [2009] Circular 6 (revised M&A Rules), the commerce authorities at provincial level will be responsible for the approval of the merger and acquisition with the transaction volume that is lower than USD300 million.
-
the commerce authority at provincial level will be in charge of the issuance of the letter of confirmation for the encouraged foreign-invested enterprise with total investment lower than USD300 million.
-
where the foreign investor applies for investments (including incorporation, capital increase, acquisition of domestic enterprise and providing loans, etc) with RMB, the commerce bureau at provincial level needs to report it to the MOFCOM for approval.
-
The foreign invested partnership that mainly deals with the investments shall be treated as the foreign investor and its investment needs to be in compliance with the Chinese legislation relevant to the foreign investment.