On 24November, 2014, the Ministry of Commerce and the Ministry of Civil Affairs published the Announcement about Encouraging Foreign Investors to Set Up Profit-making Institutions in China Engaging Pension Service (no. 81, 2014, hereinafter refer to as Announcement), to promote the development of Chinese pension services.
The Announcement encourages foreign investors to establish profit-making pension service institutions in China independently, or establish with Chinese companies, enterprises and other economic organizations in joint venture and cooperation. Further, it encourages foreign investors to participate in the reformation of the enterprise system of institutions facing with the public providing pension service, and the restructuring shall properly resolve the preservation of workers’ benefits and the maintain of the value of national -owned assets and so on.
Meanwhile, the foreign-owned profit-making pension service institutions enjoy the equal tax preferential policy and administrative fees policy with domestic profit-making pension service institutions.
The Announcement stressed that the establishment of foreign-owned real estate enterprise which is established by changing the function or plot ratio of the land used for constructing facilities of pension service shall not be approved. Foreign-owned profit-making pension service institutions cannot engage in the business of residential discount pension, etc. The scope of foreign-owned profit-making pension service institutions includes medical and health services, which shall satisfy the approval procedures according to relevant policies.
The Announcement confirms that it also applies to the pension service institution owned by investors located in Hong Kong, Macao and Taiwan. If there is any inconsistency with the previous regulation, it shall be subjected to the Announcement.
（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.）