Long Credit Business Information

1 Issuance of foreign exchange certificate for foreign-invested enterprises
Within 30 days of the issuance of the business license, a foreign-invested should apply to the local foreign exchange control administration for going through the procedures of foreign exchange registration. In going through the procedure, the said enterprise hsall fill in a form on its basic information and supply the following documents:
a A written application for foreign exchange ergistration;
b The business license and its duplicated copy;
c Documents of approval and the certificate of approval for the establishment of the said foreign invested enterprise;
d The contract and articles of association already effective with approval of the proper authorities;
e Other documents required by the aforesaid administration for foreign exchange control.
After considering the documents submitted by the aforesaid enterprise, the local foreign exchange control administration will issue the Foreign Exchange Certificate for Foreign-Invested Enterprise (hereinafter referred to as "Foreign Exchange Certificate" for short) to the aforesaid enterprise provided it meets the prescribed requirements.
2 Opening of foreign exchange accunt
A foreign-invested enterprise shall, in light of its own needs, apply for opening a foreign exchange capital fund account, a foreign exchange settlement account, a special account for foreign exchange loans, and a special account for repayment of foreign exchange debts. The aforesaid foreign-invested enterprise shall, upon production of the application for opening such accounts, the Certificate for Foreign Exchange Certificate and other relevant documents, gothrough the relevant procedures at the bank in the place of its registration which is designated in the Notification on Account Opening issued to it by the local foreign exchange control administration.
An enterprises with a reasonable cause for wanting to open a foreign exchange bank account in a city other than the city of its registration must apply for permission to the foreign exchange control administration with which it is registered. Upon production of the Notification on Account Opening issued to it by the foreign exchange control administration with which it is registered, the aforesaid enterprise shall report the case to the foreign exchange administration where it is registered, the aforesaid enterprise shall report the case to the foreign exchange administration where it wants to open the account for the record. Only after examination by the foreign exchange control administration at the place where the aforesaid enterprise wants to open the account and with seal of the said administration affixed to the document of approval, can the aforesaid enterprises actually to through the procedures for account opening.
3 Management of foreign exchange under current account
The foreign currency settlement account of a foreign-invested enterprise can be used to handle receipts and payment under current account and items classified by the local administration for foreign exchange control as under the capital account.
Revenues under the current account in foreign currency must by brought within the limits approved by the state Administration for Foreign Exchange Control. The enterprise sell any surplus to the designated foreign exchange bank. The relevant administration for foreign exchange control shall adjust the limit of the foreign currency settlement account of a foreign-invested enterprise according to the actual invested capital and the demand of the capital turnover in foreign currency for current account items. With relevant certificates and documents, current account payments in foreign exchange for trade and non-trade business of foreign-invested enterprise can be directly settled through their bank account or remitted through the designated bank. Foreign-invested enterprises can remitprofits and extra dividends after tax directly into their bank account or cash them at the designated bank on presentation of the profit distribution agreement by the board of directors or other valid documents.
Salary in Renminbi after tax and other earnings of overseas Chinese and employees form Hong Kong, Macao and Taiwan can be cashed at the designated bank with valid testimonial.
Payments can be drawn form the foreign currency ban account or cashed in the designated foreign currency bank. Payment in foreign currency by foreign-invested enterprises in the following cases should first be examined by the State Administration for Foreign Exchange Control:
a Where deposits exceed 15 percent of the total contracted payment for Imports and sun us more than 100,000US dollars;
b Where overt commission is 2 percent more and covert commission is 5 percent more than the total contracted payment for exports and the sum is more than 10,000 US dollars;
c Where advance payment is made is made in entrepot trade;
d For the repayment of interests of foreign currency debts; 5. where the cash drawn exceeds 10,000 US dollars.
4 Management of foreign exchange under capital account
The capital invested in cash in foreign currency by investors of foreign-invested enterprises can be deposited into the Capital account in the bank. Payment from the capital account can be used for relevant current account items and other expenses approved by the State Administration for Foreign Exchange Control.
Foreign-invested enterprises can arrange their own foreign currency loans. Within 15days after signing a foreign currency loan in a foreign country, the enterprise should go to the State Administration for Foreign Exchange Control to register the foreign debt with the copy of the contract, and get the Certificate of Registration for Foreign Debts.
When the borrowing unit receives the loan from overseas, it should, upon production of the Certificate of Registration for Foreign Debts and the notification on repayment of capital of the debt plus the interest, open a special account for foreign exchange in the following cases cannot be settled without approval of the State Administration for Foreign Currency Exchange:
b Capital invested in foreign-invested enterprises by both Chinese and foreign sides in cash of foreign currency;
c Foreign currency obtained through foreign currency loans obtained from foreign countries, foreign currency bond issues and shares;
d Other foreign currency income under the capital account.
The following foreign exchange under the capital account of foreign-invested enterprises can be applied for to State Administration for Foreign Exchange Control. The following documents need to be presented on application. Then the money can be cashed at the deposit bank or designated bank on presentation of a verification letter by the administration;
a For repayment of the capital of foreign debt, the Certificate of Registration for Foreign Debt, the contract on the loan and notification issued by the creditor on repayment shall be submitted.
b For foreign currency to be used to guarantee overseas contracts, the guarantee registration card issued by the Administration for Foreign Exchange Control, and notification issued by the foreign organization on repayment shall be submitted.
b For payment for capital investment in foreign countries, approval documents issued by the government body responsible and investment contract need to be submitted.
c For payment for capital investment in foreign countries, approval documents issued by the government body responsible and invesment contract need to be submitted.
d For approved contribution in foreign exchange made by the Chinese side to the registered capital of a foreign-invested enterprise, the approval document issued by the government body responsible and the relevant contract need to be submitted.