Simplified Procedures for Investment in Guangdong
2013-May-6 Source: Newsgd.com
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In March, Guangdong’s Reform Plan of Administration on Enterprise Investment (“Reform Plan”) was issued by Development and Reform Commission of Guangdong (“DRCGD”). According to the Reform Plan, 28 categories of investment do not require approval from DRCGD anymore, except those which shall be approved by the State and those involving development of public resources. The enterprise shall file the investment with competent authority directly, without applying for approval; if it invests in more than one region, it shall file with the authority which governs the regions. And the filing can be done online. This reform simplifies the procedures and aims to encourage investment in Guangdong.

The Reform Plan also facilitates foreign investment and overseas investment.

For the foreign investment, where the project is encouraged and allowed by the State, with less than UDS 300 million capital contribution, the investor may file the project directly; where the project involves development of public resources, the investor shall compete for quota; where the project is restricted by the State, the investor shall apply for approval. In addition, the articles of association of the foreign company can be filed directly instead of going through approval.

For the overseas investment, where the Chinese investor invests in resource development project with less than USD 30 million, the project does not need approval; where the project is for non-resource development with less than USD 10 million, the investor may skip the approval from DRCGD. However, as the Reform Plan is quite new, its implementation details are to be tested in practice.

(This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.)

Editor: Olivia
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