Guangzhou: Gear up for Foreign Investment
2013-March-28 Source: Newsgd.com
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On March 5, 2013, Guangzhou Industry and Commerce Bureau (“GZICB”) takes steps to solve the difficulty of capital contribution for foreign invested enterprise (“FIE”). The steps can be summarized as follows:

“Three easing”: 1) Extend the period of capital contribution. If the land issues occurs to the FIE and is confirmed by relevant authority, GZICB may grant grace period to the FIE and register its incorporation; 2) Extend the period of first capital installment. If the FIE fails to pay the first installment due to foreign exchange difficulty, GZICB may register its incorporation with authoritative proving document; 3) Remove the restrictions on enterprise cancellation. If the FIE delays capital contribution, GZICB permits its liquidation and will not impose penalty on it.

“Two support”: 1) Support the FIE to solve capital difficulty. If the FIE with financial burden fails to contribute capital on time and runs business lawfully, it may apply for grace period by the deadline of contribution period. After the approval by Guangzhou Bureau of Foreign Trade and Economic Cooperation, GZICB may accept the FIE’s registration; 2) Facilitate the FIE to accommodate to the change of policy. If the changes of land, foreign exchange and other policy beyond forecast cause the FIE to delay capital contribution, GZICB may grant grace period to the FIE with official proving document.

“One shortcut”: it simplifies the registration procedure in case of capital contribution delay. No credit record is needed any more. With reference to the online record, GZICB may register the incorporation.

(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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