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Traditionally, the establishment of a subsidiary in the People’s Republic of China (called a foreign invested enterprise, or “FIE”) is a long and burdensome administrative process.
New rules, which became effective in October 2016, introduce a major change by replacing, for most industries, the old system of mandatory prior review and approval of the project by the Ministry of Commerce (“MOFCOM”) by a simple filing system.
Below is a summary of the key points of this new FIE filing regime.

  • Removal of market entry approval for FIE’s incorporation
  • Scope of the reform
  • Application of the recording regime to corporate changes of FIEs
  • Effective date for corporate changes
  • Less documents, more information required
  • Conclusion: Is the reform a real game changer?

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