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Measures governing the record filing of commercial franchising, reviewed and adopted at the 6th Minister’s meeting of the Commerce Ministry on April 6 2007, is now promulgated and shall enter into force as of May 1 2007. 
  
Minister: Bo Xilai
April 30 2007

 Article 1. This set of measures is formulated in accordance with the provisions of the Regulations of Commercial Franchising (”Regulations” to strengthen the administration over franchising, and regulate the order of the franchising market.

Article 2. This set of measures is applicable to the commercial franchising inside the People’s Republic of China (hereinafter referred to as “inside China”).

Article 3. The commerce department under the State Council and the commerce agencies of various people’s government of provinces, autonomous regions, and municipalities are authorities for the record filing of commercial franchising. In cases where commercial franchising is conducted within a province, autonomous region, or a municipality, the record filing shall be done with the commerce agency of the said province, autonomous region or municipality. However, in the case of operations beyond one province, autonomous region or municipality, the record filing shall be done with the commerce department under

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 Xinhua News Agency  

China Investment Corporate Ltd (CIC), the country’s long-awaited state forex investment company set up to make better use of its huge foreign exchange reserve, was inaugurated in Beijing on Saturday. The CIC, with a registered capital of $200 billion, is a solely state-owned company, according to the company sources. Lou Jiwei, currently deputy secretary-general of the State Council, was appointed the CIC’s board chairman, while Gao Xiqing, now vice chairman of the National Council for Social Security Fund, was named the general manager, the sources said. Hu Huaibang, Commissioner of Discipline Inspection with the China Banking Regulatory Commission, took the post as chief supervisor, said the sources.

Edited by Vincent Cheung from www.pathtochina.com  

After representative office ( RO) is ultimately the suitable vehicle you choose to establish a presence in China, the primary concern is the taxation  There are three tax bases in

  The first question you are supposed to ask is whether the activities your RO engage in are tax-exempt or taxable. Not surprisingly, most of ROs are required to pay tax in China, that’s why you should have your RO registered in tax bureau during the incorporation of it, do tax filing on a monthly basis, and submit annual audit report.  

What types of Representative Office or Activities Are Tax-exempt?  

The taxability of a RO is decided by the nature of it. Effective in July 2003, Guo Shui Fa (2003) No. 28 has ruled out a lot of tax exemption policies. (more…)

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By Vincent Cheung from www.pathtochina.com  

After the capital is successfully injected to your foreign exchange account, it’s time for you to apply to SAIC ( Shanghai Administration of Industry & Commerce) for the renewal of the business license.

Following documents should be presented to SAIC:

1.<<Application for the Alteration(Record) of Foreign-invested Enterprises>> 2.Capital verification report issued by CPA( Original) 2. Business licenses ( Original and duplicate), electronic business licenses

4.Other required documents; In case the capital contribution is non-monetary asset, certification documents of asset 

   transfer formalities are required to be provided.    (more…)

by Vincent Cheung from www.pathtochina.com  

A foreign company’s entity status certification should be notarized by the relevant authority in its own country, and then be presented to China’s embassy or consulate in the country. In event that the country hasn’t established a diplomatic relationship with China, it should be presented to the embassy or consulate of the third party country, which has established a diplomatic relationship with China, in the foreign country, and then be presented to China’s embassy or consulate in the third party country. The documents issued by some foreign countries’ oversea dependencies should first be notarized in the dependencies,  then be presented to the foreign country’s diplomatic authorities to be authenticated, and be authenticated in

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Contents  Extracted from “Guide to Doing Business in China”

1．For JVs with a total investment of US$3 million or less, the registered capital should account for at least 70% of the total   investment;

2. If the total investment is over US$3 million but less than or equal to US$10 million, the registered capital should account for at least 50% of the total investment; the registered capital should not be less than US$2.1 million if the total investment is under US$4.2 million;

3.If the total investment is over US$10 million but less than or equal to US$30 million, the registered capital should account for at least 40% of the total investment; the registered capital should not be less than US$5 million if the total investment is under US$12.5 million;

4. If the total investment exceeds US$30 million, the registered capital should account for at least one-third of the total (more…)

In accordance with Regulations of the People’s Republic of China on Controlling the Importand Export of Commodities, the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and Circular on Several Issues Concerning the Seventh Type of Waste 。　　

Chapter I General Provisions　　

Catalogue of Commodities Forbidden to Import (the Forth Batch)　　

No. Commodity Code Commodity Name Notes　

1. 0501.0000 unprocessed human hair, no matter washed or not; wasted human hair　　

2. 0502.1030 bristles and wasted bristles　　

3. 0502.9020 badger hair and other wasted animal hair used for making brushes　　

4. 0 503.0090.10 wasted horse hair　　 (more…)

By Vincent Cheung from www.pathtochina.com   Due to the fact that a representative office is not a legal entity, it can only hire Chinese staff through authorized state-owned employment agency like Shanghai FESCO ( Foreign Enterprise Service Corporation) . The requirement for hiring local staff  through FESCO is to ensure that local staff’s rights and interests.   

A letter of the RO’s introduction, a copy of business license, recruitment requirements, and identification document of the person-in-charge of the recruitment are required to be given to FESCO. A RO can choose staff currently registered at Shanghai FESCO or post recruitment Ads in popular online recruitment websites like www.51job.com, www.zhaopin.com, or www.chinahr.com, all of which have English version. Besides that, you can also advertise on newspaper, magazine or TV, or (more…)

（Promulgated on July 22, 2002 by Decree No. 123 of the Shanghai Municipal People’’s Government）

Article 1 （Purpose）In order to ensure the legitimate rights and benefits of out-of-town employees, normalize the act of employment of the units, and safeguard the order of labor market in this Municipality, these Procedures are formulated with full consideration to the actual circumstances of this Municipality.

Article 2 （Definition）The comprehensive insurance for out-of-town employees mentioned in these Procedures （hereinafter referred to as the comprehensive insurance） refers to the three insurance benefits with industrial injuries （or unexpected injuries）, hospital treatment, and old-age allowance included. The out-of-town employees refer to the personnel from other provinces, autonomous regions and municipalities directly under the Central Government without the permanent Shanghai residence registration who do physical labor or commercial business in this Municipality and meet the employment

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