Q: What are the methods of capital contribution for foreign investors?
A: 1.Foreign investors can make capital contributions in freely convertible foreign currencies, or they can use equipments, industrial property, and proprietary technology to make capital contributions.
2.Where a foreign investor invests in industrial property or proprietary technology, the industrial property and proprietary technology shall be owned by the foreign investors. The price of the industrial property and proprietary technology shall be consistent with the international pricing principle, and the amount of the price shall not exceed 20% of the registered capital of the foreign-owned company.
Q: Can foreign investors make capital contribution with RMB?
A: The Chinese currency contributed by a foreign investor must be the RMB profit obtained from other foreign-owned companies in China held by the same foreign investor, and must be approved by the authority. Otherwise, foreign investors can only use foreign currency and cannot use RMB.
Q: What are the regulations on the amount of money contributed by shareolders of the foreign-owned companies?
A: The monetary contribution of all shareholders of the newly registered foreign-owned company shall not be less than 30% of the total registered capital of the company. The amount of monetary contribution shall not be less than 30% of the total registered capital of the company when the shareholders are changed.
Q: What are the regulations for the contribution of joint ventures of Chinese-foreign joint ventures?
A: 1.Chinese-foreign joint venturers can make capital contribution with money, or they can use buildings, factories, machinery and equipment or other materials, industrial property, proprietary technology, and land use rights.
2.If the building, plant, machinery or other materials, industrial property, and proprietary technology are used as capital contribution, the price shall be determined by the Chinese party and foreign party of the joint venture in accordance with the principle of fairness and reasonableness, or the third party assessment agreed by the Chinese and foreign parties.
3.The machinery and equipment or other materials contributed by the foreign party in the joint ventur shall be necessary for the production of the joint venture; the price of machinery and equipment or other materials shall not be higher than the current international market price of similar machinery and equipment or other materials.
4.Industrial property or proprietary technology by a foreign joint venturer must meet one of the following conditions:
(1)Can significantly improve the performance and quality of existing products. Increase productivity.
(2)Can significantly save raw materials, fuel, power.
