Establishment of wholly foreign-owned enterprises (WFE)

◎Authorizing Institution

  Shanghai Foreign Economic Relation & Trade Commission of Changning District

◎Application materials

Application procedure

1.    Consultation on policies, laws and regulations concerned

2.    Submitting application documents

3.    Acknowledgement and Initial Assessment by the Shanghai Foreign Economic Relation & Trade Commission

4     Assessment by People’s Government of Changning District

5     Assessment notice sent and, the applying corporation proceeds with corporation code registration, the Foreign Economic Relation & Commission of the District to apply for corporation code registration to the municipal commission.

6     Issuing permit     

◎     Procedures and Processes

Application Documents:

1. Original application and feasibility report for WFE (must be lodged by qualified international consultation agency) 2. Copy of agent representation or authorization agreement concerning the applications 3.Copy of agency qualifications and certifications, 4. Copy of permission notice for industry and commerce registration name 5. Original feasibility report and Article of Association,  A Feasibility Research Report should include the following information: (I) name, registered address, aim of incorporation, business scope and scale of operation of the WFE; (II) name of the investor, registered country, registered address; name, occupation and nationality of the legal representative; (III) total investment, registered capital of the WFE; (mode of investment, lodgment period of the capital investment); (IV) Operation period, distribution of profits and undertaking of losses; (V) Overall introduction, conclusion, problems and recommendations of the Feasibility Report; (VI) Production arrangement and its basis; (VII) Material supply arrangement and basis (including energy supply and transportation, etc.); (VIII) Address selection of the project and basis; (IX) Selection and basis of technical equipment and production process; (X) Production organization structure; (XI) Environment pollution preventions and labor security, hygiene facilities and basis; (XII) Capital raising and basis; (XIII) Comprehensive analysis. 

Article of Association of wholly foreign-owned enterprises should include the following information: (I) name and domicile; (II) The aim and business scope; (III) The total amount of investments, the registered capital, and the time limit for contributing investment; (IV) The form of organization; (V) The internal organizational structures and their functions and powers as well as their rules of procedures; the functions, duties and limits of powers of the legal representative as well as of the general manager, chief engineer, chief accountant and other staff members; (VI) The principles and system of financial affairs, accounting and auditing; (VII) Labor administration; (VIII) The term of business operations, termination, and liquidation; and (IX) The procedures for the amendment of the Article of Association.  6. Documents to be lodged in application by the investor: (I) copy of legitimate opening of business certificate (not necessary for individual investment), (II) original bank credit certificates, (III) copy o identity certifications of the legal representatives (personal ID for personal investment).  7. Copy of proprietary right or other legitimate certifications or lease agreement of the registered address and production venue (personal ID for personal investment), 8. Assessment results concerned from prior applications (including environment protection, hygiene, culture, cigarette and alcoholics, press/news agency, advertisement/industry and commercial administration, etc.) 9. Name list of board of directors and authorization letters. 10. Other documents for application.  All documents above-mentioned must be in formal version unless noted as copy needed. Where any documents are signed by persons other than the legal representative, a letter of authorization from legal representative should be lodged.

◎     Policy concerned

   Processing fee: RMB10 Yuan (including the cost of permit certificate)

◎     Remarks

Processing period: 30 working days

Establishment of Enterprises with Foreign Investment

◎     Operation Category

Administrative Permit Application

◎     Authorizing Institution

Shanghai Foreign Economic Relation & Trade Commission of Changning District

◎     Pre-requisites for application

   Enterprises with Foreign Investment or individuals

◎     Fee charges

RMB 10 Yuan (including cost of permit certificate)

◎     Procedures and Processes

Procedures of application: Enterprises with Foreign Investment should apply to the authorized department with relevant materials and certifications of the concerned company or individuals.  Processing personnel of the authorized department should accept lodgment of such application and move on to assessment, which should undergo further assessments and inspections of superior officers, including Head of Assessment Management Department, Commissioner of the Foreign Economic Relation & Trade Commission (Merchant Bureau), Chief Commissioner of the Commission/Bureau, District Managing Chief Executor, and the final assessment opinion should be formed. Successful assessment should be dispatched in printed responses by the charging officer for the concerned company to submit to Shanghai Municipal Bureau of Quality and Technical Supervision for Company Code Certificate. Processing officer shall, against lodgment of such Company Code Certificate, issue the permission for establishment of the company.

Assessment of different levels after acceptance of lodgment of application, proper response and permit issued against successful assessment.

◎     Policy concerned

Laws and Rules for the Implementation of the People's Republic of China on Sino-Foreign Joint Equity Venture, Sino-Foreign Co-Operative Enterprises and Foreign-Funded Enterprises

◎     Processing Period and Notice of Result

       30 working days