Laws of the People's Republic of China

The State Administration of Foreign Exchange

Interim Measures for Administration of the Foreign Exchange Registration of Enterprises with Foreign Investment

HuiZiHanZi [1996] No.187

June 28, 1996

Article 1

These Measures are formulated in order to improve the foreign exchange administration of enterprises with foreign investment by setting up an administration system of foreign exchange registration.

Article 2

Enterprises here refer to Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures, and foreign-capital enterprises registered within Chinese territory.

Article 3

The State Administration of Foreign Exchange and its branches and sub-branches (hereinafter SAFE) are the administration organs in charge of foreign exchange registration.

Article 4

Within 30 days of acquiring the Business License for a Legal Person of the People's Republic of China, enterprises shall go through the formalities of foreign exchange registration with the domiciled branch of SAFE. When applying for the registration, enterprises shall fill in the Registration Form on Basic Information of Enterprises with Foreign Investment and present following documents (duplicate copies):

1.

approval documents and Approval Certificate for establishment issued by the competent organ.

2.

Business License for Legal Person of the PRC issued by the State Administration for Industry and Commerce.

3.

the approved and valid enterprise contract and constitution.

4.

other documents required by SAFE.

Domestic or overseas subsidiaries of the enterprise that has registered with the domiciled branch of SAFE do not need to go through the formalities of foreign exchange registration separately.

Article 5

After examining the documents submitted by the enterprises, SAFE shall issue Foreign Exchange Registration Certificate of Enterprises with Foreign Investment (hereinafter Registration Certificate) to the qualified applicant.

The Registration Certificate shall be designed centrally by SAFE headquarter.

Article 6

After acquiring the Registration Certificate, the enterprise shall open foreign exchange accounts with designated foreign exchange banks on the strength of the Registration Certificate and Notice for Opening an Account issued by SAFE in accordance with Interim Measures for Administration of Domestic Foreign Exchange Accounts of Enterprises of Foreign Investment.

After opening a foreign exchange account for the enterprise, the designate foreign exchange bank shall note its own name, currency, the account number, nature of the account, date of opening in the appropriate columns on the Registration Certificate, as well as stamp it with its own seal.

Article 7

SAFE shall make an annual-inspection on the Registration Certificate. Inspected Registration Certificate shall be valid. The term of validity shall be one year.

Article 8

After going through the formalities of the Registration Certificate, in case of name, address, and business scope changes, or share transfers, capital increase, and merge, relevant documents shall be submitted to SAFE for the record in time after industry and commerce registration and apply for the change of the Registration Certificate.

Article 9

Upon the expiration or early termination of the term of an enterprise, after disbanding as approved by the original competent organ, shall go through the formalities of registration cancellation with SAFE within 30 days after liquidation. The Registration Certificate shall be surrendered to SAFE. Foreign exchange accounts shall be closed.

Article 10

In case of losing the Registration Certificate, the enterprise shall report to SAFE in a timely fashion. After verifying it the truth, SAFE shall issue a make-up Registration Certificate.

Article 11

Registration Certificate shall not be forged, altered, rent, transferred, or sold to others.

Article 12

In cases of those who violate these Measures, SAFE shall, in accordance with the seriousness of the case, impose fines of RMB 1,000-10,000.

Article 13

The right to interpret these Measures resides in SAFE. These Measures shall enter into force as of July 1, 1996.