Foreign-invested M&A activities shall meet the requirements of China’s industrial policies on utilization of foreign investment. For the industries where foreign investors are prohibited from operation as specified in the Catalog, no foreign investor shall merge any enterprise engaged in such industries.
If the agreement requires the foreign capital contribution to be injected in one time, this contribution should be made within 6 month. If the contribution is to be make by installments, the first installment should not be less than 15% and be made within 3 month.
You shall specify the limit for payment of capital contribution in the contract and articles of association of the enterprise. You shall fully pay the capital contribution equivalent to the consideration of the assets within three months upon the issuance of the business license. In special circumstances and with approval, the term for payment may […]
a) Cash b) Goods c) Intellectual properties
Within 30 days upon receipt of the business license of your enterprise, you should also do registration with Taxation Authority, Customs, Land Administration Bureau, and Administration of Foreign Exchange, etc.
You shall, within 30 days upon receipt of the approval certificate, apply for registration with competent registration authority and obtain a business license.
Administration for Industry and Commerce
a) Information of each party, including the name and domicile of each party; the name, position and nationality of each legal representative; b) The percentage and price of the purchased equity interest or increased capital; c) Time table and method for execution of the agreements; d) The rights and obligations of each party to the agreements; […]
a) Unanimous agreement or minutes of board of shareholders on the acquisition by foreign investor b) Application letter c) Contracts and Articles of Associations d) Equity purchase agreement or capital increase agreement e) Financial statements of the local company f) Investor’s ID and credentials g) Invested enterprises of the local company h) Business license of both parties i) Plan for employees treatment j) Other
The approval authority shall within 30 days to make decision on whether to approve the M&A or not. If the M&A is approved, the Approval Certificate for Foreign Invested Enterprises shall be issued.
