Long Credit Business Information

Establishment of Chinese foreign joint venture and cooperative projects and projects under sole Foreign proprietorship normally has to go in phases of advanced preparations, examination and approval of application for registration.
1) Selection of partners for cooperation?
There are many ways for foreign investors to select the right kind of partners for cooperation. It is advisable for them to contact municipal, district and/or county government departments, as well as enterprises, institutions of highter learning, R&D institutions or consulting agencies.
2) Signing letters of intent?
Upon conclusion of initial negotiations, the Chinese and foreign parties to a proposed project may sign a letter of intent or a cooperation agreement upon attainment of consensus of opinion by both parties.
3) Examination and approval of the project proposal
Division of power for examination and approval within the Municipal Development Planning Commission and how to submit a project proposal to the proper authorities for examination and approval:
a.The limits of authority for examination and approval
b.Projects for which agreement shall have to be sought from the relevant government departments before they are submitted to the Municipal Development Planning Commission for examination and approval:
i For motor vehicle testing centers and driving schools, agreement from the Municipal Bureau for Control of Public Transport??
ii For dance halls with a floor space exceeding 500 square meters, agreement from the Municipal Culture Bureau. For dance halls with a floor space of less than300 square meters, the project proposals shall be examined and approved by the development planning commission of the relevant county or district after agreement is sought from the district or the county culture bureau.?
iii For projects dealing in gold and/or jewelry, agreement from the beijing Office of the People's Bank of China's?
iv For construction companies, agreement from the Municipal Commission for Urbanand Rural Construction;?
v For enterprises specializing in prospecting and designing, agreement from theCapital Urban Planning Committee;
vi Other projects for which agreements from relevant government departments are deemed necessary by the Municipal Development Planning Commission in light of the city'ss specific conditions.
c. How to submit a project proposal
Foreign?invested projects, be they Chinese?foreign joint venture or cooperative projects, must be submitted to the proper authorities for examination and approval in accordance with the following rules;
i A project, if belonging to a unit under the Municipal Government, should submit the project proposal to the administrative organ of which the aforesaid unit is a subordinate. Then the aforesaid administrative organ shall submit the proposal to the Municipal Development Planning Commission (or the Municipal Foreign Economic Cooperation and Trade Commission) for examination and approval.
ii A project to be undertaken by a unit under the government of a district or county shall submit the project proposal to the development planning commission of the district or the county for examination and approval. The result of the examination and approval shaal then be reported to the Municipal Development Planning Commission (or the Municipal Foreign Economic Cooperation and Trade Commission) for the record.
iii As regards projects to be undertaken by non?government or other organizations without organizational affiliation to the government, the project proposal shall be submitted to the development planning commissions of the districts or counties where the aforesaid projects are to be based. Then the results of such examination and approval shall be submitted to the Municipal Development Planning Commission for the record.
iv Whereas a foreign?invested project needs to be examined and approved by theState Development Planning Commission or the State Foreign Economic Cooperation and Trade Commission, the government organ in charge of the unit to undertake the Project shall, under normal circumstances, submit the project proposal to the Municipal Development Planning Commission or the Municipal Foreign Economic Cooperation and Trade Commission for initial examination. After granting it approval through initial examination, the Municipal Development Planning
Commission or the Municipal Foreign Economic Cooperation and Trade
Commission shall submit the project proposa to the state Development Planning
Commission or the State Foreign Economic Cooperation and Trade Commission for decision.

APPendices:
The following documents shall be submitted to the Municipal Development Planning Commission for examination to have a proposed foreign?invested project established;
1.Credit standing certificate issued by a competent financial organization outside China to the foreign investor, and the foreign investor's personal identification documents;
2.Business licenses of all the parties to the proposed project (in duplicated copied);
3.Letter of intent on the proposed project that has been signed by all the parties to the project. The Chinese party should submit the document of agreement is sued by the government organ in charge of it.?
4.Other documents deemed as necessary for the submission.
The Chinese party to a proposed project shall formulate the project proposal inaccordance with the letter of intent signed by all the parties to the proposed project, which shall then be submitted to the competent authorities for examination and approval.The Chinese party to the proposed project shall submit the following documents along with the project proposal:
1.Application by the government organ in charge of the unit to undertake the proposed project for permission to let the proposed project to go ahead;
2.Letter of intent signed by all the parties to the proposed project;
3.Project proposal signed by all the parties to the proposed project;
4.If necessary, opinions of the competent authorities on classification of the products to be turned out by the proposed project;
5.Business licenses issued to the parties by the competent authorities of the countries or regions to which the parties separately belong;
6.Credit standing certificates for each and every party to the proposed project.
4) Application for registration of enterprise names
After approval of the project proposal and before signing of the contract and articles of association, the parties to a proposed project shall apply to the Beijing Municipal Administration for Industry and Commerce, or to the district or county administration authorized by the Municipal Administration, for registrationof the name of the enterprise to be set up. The following documents shall be submit ted for such registration:
a. Form for registration of the name of the foreign-invested enterprise (in two duplicated copies) which may be obtained from the relevant industry and commerce administration after the project proposal is approved;
b.The project proposal and the document of approval;
c.Valid business license issued to the foreign investor by the competent authorities of the country or region where the foreign investor is based.
For registration of enterprise names, the following documents and certificates need to be submitted for preexamination and verification:
a Form for registration of the names of foreign-invested enterprises
b Letters of authority for registration;
c Documents certifying the qualifications of the investors for business operations:
i The Chinese party shall submit a copy of the business license for the corporate entity to which it belongs, with the official seal of the government organ ofissue affixed. The foreign party shall submit its commercial registration certificate along with a Chinese translation.
ii If the foreign party is a natural person, a copy of the person's personal identification certificate shall be submitted along with a Chinese translation.
5) Examination and approval of feasibility study reports
The Chinese and foreign parties to a proposed project shall work together to formulate a feasibility study report for submission to the proper authorities for examination and approval. The following documents shall be submitted:
a.Application by the government organ in charge of the Chinese party for having the feasibility report examined and approved by the authorities of the higher levels;
b.The project proposal and the document of approval;
c.The feasibility study report;
d.Documents certifying the legal status of the legal representative of each party to the proposed project;
e.The balance sheet and liability report of each party to the proposed project;
f.Research and forecast reports on market demand in and outside China of the products to be turned out by the proposed project;
g.Remarks of the relevant planning authorities on the venue, design specificati on and design scheme of the proposed project;
h.Remarks of the relevant government departments on matters including environmental protection, fire prevention, labor safety and work site sanitation of the proposed project;