The State Administration of Foreign Exchange Circular of the State Administration of Foreign Exchange on Authorizing SAFE Branches to Deal with the Share Transfer, Liquidation, Huifa [1999] No.397 December 22, 1999 The “Circular Concerning Relevant Issues on Strengthening the Administration of Foreign Exchange under Capital Accounts” (Huifa [1998] Since illegal practices in this field have been corrected, we hereby issue this Circular as follows in order to improve the investment 1. SAFE branches in all provinces, autonomous regions, municipalities under the direct jurisdiction of the State Council, Beijing and 2. A domestic enterprise, when applying for purchasing foreign exchange to buy shares from foreign shareholders, shall present following (1) Written application; (2) Registration Certificate of Foreign Exchange; (3) Share transfer agreement; (4) Documents issued by MOFTEC approving the changes in enterprises with foreign investment’s shareholding structures; (5) New business license, approval certificate granted by MOFTEC, approved joint venture contract and constitution; (6) The latest capital verification, auditing report, or valid asset appraisal report of the former enterprise with foreign investment; (7) Statements of foreign exchange accounts held by the domestic enterprise on the day of the application; (8) Tax certificate proving the prepayment of income tax, submitted by the domestic enterprise, in the case that the foreign party has (9) Other documents required to be complemented. 3. When applying for purchasing foreign exchange to pay the foreign party for liquidation, an enterprise with foreign investment shall (1) Written application; (2) Original copy of the Registration Certificate of Foreign Exchange; (3) Documents issued by MOFTEC or its branches approving the liquidation; (4) Liquidation agreement reached by the liquidation committee; (5) Verification certificate of the capital contribution; (6) Liquidation report provided by a CPA; (7) All notices on the opening of existing foreign exchange accounts; (8) Statements for foreign exchange accounts on the day of finalizing the liquidation; (9) Evidence for the cancellation of tax registration; (10) Other documents required to be complemented. 4. Article 3 , Section 9 of the document Huifa [1999] No.21 is repealed. The notice is specially notified. |
The State Administration of Foreign Exchange
1999-12-22