Requirements of investment ratio for foreign-invested enterprises

Chinese laws and regulations have stipulated the investment ratio for the foreign-invested enterprise in Chinese territory, i.e. the foreign investor’s ratio shall not less than 25% of the registered capital of the joint venture. For the Sino-foreign cooperative enterprise with legal representative, the foreign investor’s share shall not be less than 25% of registered capital; for the cooperative enterprises without legal person, the investment ratio or cooperative conditions shall be in accordance with the regulations stipulated by the authority department of the State Council. While for the foreign-owned enterprises, the registered capital shall be solely invested by foreign owners. As for the Sino-foreign joint venture, the shares purchased and held by the foreign shareholders shall not be less than 25% of the registered capital.

If foreign investment ratio is less than 25%, not otherwise specified, the necessary ratification and registration must be prior to issuing certificate of “Foreign-investment ratio less than 25%”, which shall be shown on the business license remarked after “Mode of enterprise”.