What is the legal framework for setting up a foreign-invested enterprise in China?

The legal framework for setting up a foreign-invested enterprise in China is set forth in the China Business Ventures Law (CBVL). This law defines the scope of permissible business activities, as well as provides guidance on the financing, operational, and taxation requirements and restrictions of foreign-invested enterprises in China. It also establishes the regulatory framework for foreign investments in China, including the registration of investments and the establishment of branches and representative offices of foreign-invested enterprises. Under the CBVL, foreign-invested enterprises must adhere to the minimum capital requirements of at least 30% of the total investment amount, and foreign-invested enterprises also must be registered with the State Administration for Industry and Commerce (SAIC). The basic registration procedure requires a foreign-invested enterprise to submit an application for an investment certificate and an acceptance letter from the concerned SAIC authority. After the application is approved, the foreign-invested enterprise will receive an investment certificate from the SAIC. The CBVL also outlines procedures for the establishment of branches and representative offices of foreign-invested enterprises in China. To establish a representative office, the foreign-invested enterprise must register with the provincial branch of the SAIC and obtain approval from the provincial branch of the SAIC. For the establishment of a branch, the foreign-invested enterprise must register with the SAIC and receive an approval from the National Development and Reform Commission (NDRC). In addition to these requirements, the foreign-invested enterprise will also need to apply for and obtain various licenses and permits in connection with its business activities in China, such as business licenses, foreign exchange management permits, and environmental protection permits. By following these requirements, foreign-invested enterprises can set up operations in China in accordance with the CBVL.

What is the legal framework for setting up a foreign-invested enterprise in China?

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