The Ministry of Foreign Trade and Economic Cooperation Official Reply of the Ministry of Foreign Trade and Economic Cooperation Concerning Issues of Foreign-capital Enterprise Mortgaging WaiJingMaoFaHanZi [1996] No.66 October 31, 1996 The Foreign Economic and Trade Commission of Tianjin: Your document, JinJingMaoZiGuanZi [1996]No.172, has been received. The relevant issues hereby is replied as follows: According to Article 24 of the Rules for the Implementation of the Law of the People’s Republic of China on Foreign-capital Enterprises, Foreign-capital enterprises which mortgage or transfer their property or rights and interests to overseas person shall subject to 1. Investors have paid their subscribed capital in accordance with the article of the enterprise; 2. After the enterprise completed of the mortgage loan, the proportion of its registered capital to the total amount of investment shall 3. The time period of mortgage shall not exceed the operating period of the enterprises. Where implementing the forgoing provisions, the authorities of examination and approval shall require the enterprises applying for 1. the application of the enterprise to mortgage its property or rights and interests to overseas person. The application shall set out 2. the approval certificate of the enterprise; 3. the articles of the enterprise; 4. the balance sheet of the enterprise; 5. the capital verification report and property certificate of the property to be mortgaged issued by Chinese CPA; 6. the decision of the board of directors and the supreme authority of the enterprise on the approval of mortgaging the property; 7. A copy of the contract for mortgage. Where the examination and approval authority has checked the correction of the forgoing documents, it may approve the enterprise and The foregoing shall be abided by, where any problems occur, ask for an instruction in time please. Attachment: The reply of approval XX Company to mortgage its property (or rights and interests), (for reference only) (omitted) |
The Ministry of Foreign Trade and Economic Cooperation
1996-10-31