Selling Product in China

An Expert's View about Distribution Networks in China

Last updated: 22 Feb 2011

2-2 Application Procedures for Foreign-Invested Production Enterprises to Sell Their Own Products in China


Under existing laws, foreign-invested production enterprises approved by the Chinese authorities automatically enjoy domestic sale rights and no separate approval is required provided that the products they sell are products they produce in China. If an enterprise wishes to sell products not produced by itself, it has to apply for approval to expand its domestic sale operations in accordance with the Measures for the Administration of Commercial Enterprises with Foreign Investment promulgated by MOFCOM on 16 April 2004. All the investing parties of the enterprise concerned have to submit an application for the amendment of the original contract and articles of association. The application should state clearly the types of distribution activities being applied for, such as wholesale, retail, commission agency and franchising, as well as the proposed list of products. The application should be submitted in accordance with the statutory procedure for expanding an enterprise's business scope. After the applicant receives the revised Approval Certificate for Foreign-Invested Enterprise, it should proceed to the industry and commerce administration to apply for alteration of the registration details within one month. A foreign-invested production enterprise can maintain the same status after its change in business scope. As a general rule, the revenues generated from distribution business should not exceed 30% of an enterprise's total sales revenue.

To read the full version, please click here


Posted: 21 February 2011, last updated 22 February 2011

See more from Distribution Networks in China

Expert Views    
Concessions, Purchasing Methods   By Hong Kong Trade Development Council (HKTDC)
Suppliers Applying for Mkt Distribution   By Hong Kong Trade Development Council (HKTDC)
Retail System   By Hong Kong Trade Development Council (HKTDC)
Selling Product in China   By Hong Kong Trade Development Council (HKTDC)
Enterprises Sourcing for Local Sales   By Hong Kong Trade Development Council (HKTDC)