The State Administration of Foreign Exchange Circular on Some Issues Concerning Capital Changes of Enterprises with Foreign Investment HuiZiHanZi [1996] No.188 June 28, 1996 The branches of the State Administration of Foreign Exchange in various provinces, autonomous regions, municipalities directly under According to Article 31 of Provisions on Administration of Settlement, Sales of and Payment in Foreign Exchange, we hereby make following 1. For making re-investment domestically in a new enterprise with foreign investment with its distributed foreign exchange or Renminbi (1) Capital assessment report issued by CPA; (2) Annual auditing financial report; (3) Pay taxes report; (4) The board of directors’ profit distribution resolution; (5) The re-investor’s confirms of re-investment with profits; (6) Foreign Exchange Registration Certificate of the existing enterprise with foreign investment; (7) Other documents required by SAFE. After verifying the above-mentioned documents authentic, the domiciled branch of SAFE shall issue a proof verifying the source of 2. In case of re-investment in the existing enterprise with foreign investment with its distributed profit, relevant approval documents 3. For making re-investment domestically with its paid-in capital, the investment-orientated enterprise with foreign investment shall (1) Capital assessment report issued by CPA; (2) Approval documents issued by the competent department, Business License of Industry and Commerce, approved contract and constitution (3) The re-investment resolution of the board of directors with the investment-orientated enterprise with foreign investment; (4) Foreign Exchange Registration Certificate of the enterprise with foreign investment; (5) Other documents required by SAFE. 4. In case of capital increase, transfer, and other changes, enterprises with foreign investment shall apply with SAFE by presenting (1) Capital assessment report issued by CPA; (2) The resolution of the board of directors; (3) Approval documents issued by the original competent department; (4) Foreign Exchange Registration Certificate of the enterprise with foreign investment. (5) Other documents required by SAFE. In case of capital transfer, transfer agreement shall also be provided. After verifying above-mentioned documents authentic, SAFE shall issue Examination and Approval Form for Domestic Remittance of Foreign 5. This Circular shall enter into force as of July 1, 1996. |
The State Administration of Foreign Exchange
1996-06-28