the Ministry of Commerce Order of the Ministry of Commerce of the People’s Republic of China No. 5 The Measures for the Administration of Foreign-capital Lease Industry were deliberated and adopted at the 1st executive meeting of Minister of the Ministry of Commerce Bo Xilai February 3, 2005 Measures for the Administration of Foreign-capital Lease Industry Article 1 For the purpose of promoting the sound development of foreign-capital lease industry, regulating the business operations of foreign-capital Article 2 These Measures shall apply to the foreign-capital companies, enterprises and other economic organizations (hereinafter referred to Article 3 The foreign-capital lease industry may take the form of a limited liability company or a joint-stock limited company. A foreign-capital enterprise undertaking leasing business is a foreign-capital leasing company. A foreign-capital enterprise undertaking Article 4 All foreign-capital leasing companies and foreign-capital financial leasing companies shall abide by the relevant laws, regulations The Ministry of Commerce (hereinafter referred to as the MOFCOM) is the administrative department in charge of the foreign-capital Article 5 The leasing business as mentioned in the present Measures refers to the business that the lessor offers a lessee the use and proceeds The financial leasing business as mentioned in the present Measures refers to the business that the lessor purchases a leased property The foreign-capital financial leasing company may undertake its financial leasing business by adopting the various forms of direct Article 6 The leased property as mentioned in the present Measures includes: (1) various movable properties such as production equipment, communication facility, medical device, scientific research equipment, inspection (2) various transport facilities such as planes, automobiles and vessels; (3) intangible assets accompanying the movable properties and transport tools as mentioned in Items (1) and (2) of this article such as Article 7 The total foreign-invested assets of a foreign-capital leasing company or foreign-capital financial leasing company may not be less Article 8 A foreign-capital leasing company shall meet the following conditions: (1) Its registered capital meets the relevant requirements of the Company Law; (2) It meets the relevant requirements for the registered capital and total investment of a foreign-capital enterprise; and (3) The operating period for a foreign-capital leasing company in the form of limited liability company shall not exceed 30 years in general. Article 9 A foreign-capital financial leasing company shall meet the following conditions: (1) It has a registered capital not less than US$ 10 million; (2) The operating period for a foreign-capital leasing company in the form of limited liability company shall not exceed 30 years in general; (3) It has the corresponding professionals. Its senior managerial personnel shall have the corresponding professional qualifications and Article 10 The following materials shall be submitted to the examination and approval department for the establishment of a foreign-capital leasing (1) A written application; (2) A report of feasibility study affixed with the signatures of all investors; (3) The contract and articles of association (a foreign enterprise is only required to submit the articles of association); (4) The credit standing certification issued by a bank, registration certification (photocopy) and identity certification (photocopy) (5) Each investor’s audit report of the previous year upon audit of an accounting firm; (6) The name list of the members of the board of directors and the appointment document issued by each investor; (7) The qualification certifications of the senior managerial personnel; and (8) The notice of prior approval of enterprise name issued by the administrative department for industry and commerce. In addition to the materials stated above, the applicant that applies for establishing a joint-stock limited company shall submit Article 11 The establishment of a foreign-capital leasing company or foreign-capital financial leasing company shall comply with the following (1) For establishing a foreign-capital leasing company in the form of limited liability company, the investors shall submit a complete (2) For establishing a foreign-capital financial leasing company, the investors shall submit a complete set of materials as prescribed (3) Where an established foreign-capital company applies for undertaking the leasing business, it shall meet the requirements as specified Article 12 A foreign-capital leasing company or foreign-capital financial leasing company shall go through the registration formalities with Article 13 A foreign-capital leasing company may undertake the following businesses: (1) The leasing business; (2) The purchase of leased property from home and abroad; (3) The disposal of scrap value of and maintenance of leased property; and (4) Other businesses approved by the examination and approval department. Article 14 A foreign-capital financial leasing company may undertake the following businesses: (1) The financial leasing business; (2) The leasing business; (3) The purchase of leased property from home and abroad; (4) The disposal of scrap value of and maintenance of leased property; (5) The consultancy and guaranty business relating to lease transaction; (6) Other businesses approved by the examination and approval department. Article 15 If the leased property, which is to be imported by a foreign-capital financial leasing company in light of the choice of a lessee, When importing the leased property, a foreign-capital leasing company shall comply with the currently effective provisions regarding Article 16 For the purposes of preventing risks and guaranteeing the business operation security, generally, the risk assets of a financial leasing Article 17 A foreign-capital financial leasing company shall, not later than March 31 of each year, submit to the MOFCOM the business operation Article 18 The Lease Industry Commission of the China Foreign-capital Enterprises Association is a guild organization performing self-discipline Article 19 Where a foreign-capital leasing company or foreign-capital financial leasing company violates any law, regulation or rule of China, Article 20 The establishment of a foreign-capital leasing company or foreign-capital financial leasing company in the Mainland by a company, Article 21 The provincial administrative department of commerce as mentioned in the present Measures refers to the administrative department Article 22 The power to interpret the present Measures shall be vested in the MOFCOM. Article 23 The present Measures shall go into effect as of March 5, 2005. The Interim Measures for the Administration of Examination, Approval |
the Ministry of Commerce
2005-02-03