Shenyang Preferential Investment Policy
Shenyang Municipality has issued the policy that those enterprise with less foreign funds are to be treated just the same as foreign funded enterprises in their registration and administration, and those foreign enterprises having greater than 1% investing shares are allowed to co-operate with China party to set up undertakings in joint venture, or other cooperative modes.
Annual inspection system is reformed and for those enterprises of law abiding for 3 consecutive years, annual inspections are made on their honors.
Some charging items are reduced or partially cancelled. Registration is chargefree for those private enterprises with registered capital under 30,000 RMB, which are established by the unemployed or by persons who are laid off from state owned enterprises, or by the jobless enjoying the lowest subsistence allowance and losing job more than one year because of the bankrupt establishment concerned.
Work efficiency of enterprise registration is elevated. “A single examination and a single check” system is carried out in registering work for any enterprise to be set up and funded by Chinese or foreigners, and the formalities of establishing, alteration, cancellation, and title/name check are to be finished respectively within 5,3,2, and 1 work days. For those applications with complete documents and materials, the registration formalities will be finished in no time.
Registration system for preparatory legal body-invested projects is tried out. For those to - be – established enterprises which are basically up to the requirements for official registration and yet not get the approvals of previous formalities because of not meeting the required operational conditions, license with the word “preparatory” may be issued before their operational qualifications are certified when the related formalities are finished and the special approvals are acquired. Direct registration system for bonding companies is tried out legal bodies of enterprises, institutions, corporations and natural persons are allowed to set up various kinds of bonding companies to unfold guarantee, re-guarantee or security business for loaning, financing, bill/note discount, and lease with small and medium enterprises;
Registered capital of enterprises involved with prop industries is allow to be paid in by installments. If the first paid- in installment of the registered capital exceed 20%, the rest amount is allowed to be paid in within 5 years for enterprises involved with the 5 prop industries of automobile and related parts and auxiliaries, equipment manufacturing, IT, medicine/pharmacy/chemical, and agricultural product processing, or involved with environmental protection, urban or rural infrastructure facilities, and utilities.
Enterprises from other China cities are encouraged to start undertakings in Shenyang and they are allowed to set up enterprises of single proprietorship and which have to be operated for more than one year and may be re-registered when the entity participants are found. More liberal policies are carried out for the external investment rates of China's limited liability companies. The total investing amounts of China's limited liability companies may be not limited to the rate of 50% which is otherwise specified for the external accumulated investment of China's limited liability companies. This rate may be accumulated to 100% for assets operation companies, professional investing companies, and the parent companies of group corporations or to 70% for other kinds of companies.
More liberal policies are carried out for the intangible assets share rates. If the China or province or Shenyang city famous trade names are used to invest as the intangible assets, the occupied share rates may exceed the specified 20% of the registered capital.
Enouraging transform of system from national institutes to enterprises by allowing those institutes having qualifications of legal bodies to acquire qualifications of enterprises. And for these kinds of enterprises, the institutes may act as share holders and operate them through organizing direct management setups;
Personnel at their posts are allowed to set up enterprises. Except those who are explicitly forbidden to invest according to official documents, all other personnel on their posts are allowed to start underyakings in Shenyang city.
Natural persons are allowed to set up enterprises in cooperation with foreign investors. Any natural person qualified enough to invest may act as the investor from China party to set up joint ventures or cooperative undertakings with foreign parties;
Returned students and students studying abroad are encouraged to set up enterprises in Shenyang. Theses students may act as the legal representatives against the passports issued by China or any foreign country. For those holding Chinese passports, they may set up China funded enterprises while for those holding foreign passports or foreign residence permits, they may set up foreign funded enterprises; Fellow countrymen from Hongkong, Macau, and Taiwan are encouraged to set up individual firms. Those Chinese citizens residing in Hongkong, Macau, and Taiwan are allowed to set up individual firms against the permanent residence permits or passports or certificates of native town return;
Change of china funded enterprises to ones of foreign funding is encouraged. China funded enterprises may turn to be corresponding foreign funded ones through equity transfer, creditors' rights transfer from china party to foreign party, increase of capital and expansion of shares, and other modes of foreign funds absorption. And also foreign funded enterprises, if the foreign funds are withdrawn, may turn to be ones of China funding through assets readjustment and absorbing other domestic funds;
The title/names registration scope of enterprises is more liberal. For those limited liability companies or non-corporate establishments having paid in more than 5 millions RMB registered capital, their applications for registering titles or names beyond the limitation of the trade or industry types may be approved. Enterprises may alter registered titles /names any time and the original specification that registered title/name alteration will not be allowed within one year is now cancelled; The trade names of famous or well- known enterprises are protected. For the trade names of large enterprise groups, listed companies and enterprises having their titles/names nationally, provincially, or municipally accredited, their trade name privileges are enjoyed by themselves respectively and exclusively in the trade. Upon approvals of the enterprises concerned, share holding branches or admitted enterprises may put the same trade names before the administrative division region names;
The procedure of on – spot site survey and inspection is cancelled. Except the applications for enterprises of trades directly involving life, health, and security or explosive/ inflammable products, the procedure of on – spot site survey and inspection is cancelled for all the other enterprises when setting up, or in address alteration;
The re-accreditation procedure of well-known trademarks of municipal level is cancelled. For applications for extending trade mark validity term of the well-known trademarks of Shenyang city level, the re-accreditation procedure is cancelled, and 3 years extension may be granted if no special problems are fond;
Advertisiing business is encouraged in Shenyang. Advertising enterprises are permitted to operate related business items concurrently such as exhibition, information consultation, etc. The parent companies of group companies are permitted to operate advertising business. And enterprises with more than 5 million RMB registered capital are permitted to set up dedicated branches to unfold advertising business; The mode of supervision over enterprises is improved. Except the special purpose inspections determined by the government, or those investigations because of handling prosecutions against the complained enterprises, industry and Commerce Administrative departments do not enter into any enterprise for any inspection;
Warning system is carried out. For those enterprises committing slight illegalities without subjective intentions and without harmful results, no administrative punishments will be made to them, being warned to correct within specified time;
Checking up on the legal qualifications of enterprises with public ownership “shell”. For those enterprises with public ownership shell“, which are unable to find investing cooperative partners, or to proceed to equity transfer, or joint stock transformation, or normal bankrupt procedures, their licenses will be written off. |
