According to the Company Law of the People's
Republic of China, foreign-funded enterprises that invest
in their own name, in limited liability companies or joint
stock limited liability companies with the capital and
assets of the enterprises must fulfill the following requirements
in order to be registered as the stockholders or sponsors
of the company:
¡ó Having
contributed in full the investment promised in the contract;
¡ó Having
completed the project originally approved;
¡ó Having
begun to pay income tax.
Where the foreign-funded enterprise
is the stockholder or sponsor of the company, the ratio
of its shares in the company's capital must comply with
the following requirements:
1.For industries where the state encourages
direct overseas investment, there is no limit as to
the percentage of shares owned by the foreign-funded
enterprise(unless specified otherwise by the state).
2.For industries where the state limits
direct overseas investment, the shares owned by the
foreign-funded enterprise can not exceed 25% of the
total registered capital.
