Procedures for Establishment of FIE's

An Expert's View about Business Administration in China

Last updated: 22 Feb 2011

2.3 Application Procedures for Establishment of Foreign-invested Commercial Enterprises and Their Shops


Step 1:  Application for Establishment

An investor interested in establishing a foreign-invested commercial enterprise or a foreign-invested commercial enterprise interested in setting up shop should submit the required application documents to the provincial commerce authorities at the place where the foreign-invested commercial enterprise is registered.


Step 2:

After making a preliminary examination of the submitted documents, the provincial commerce authorities would forward the application to MOFCOM within one month from the receipt of all the application documents.

MOFCOM should decide whether or not to approve the application within three months from the receipt of all the application documents and should issue an Approval Certificate for Foreign-invested Commercial Enterprise to the successful applicant.

Provided that all the conditions are met and that the scope of business does not involve commodities such as TV, telephone set, mail-order, Internet, vending machines, books, newspapers, periodicals, refined oil products, pharmaceuticals or automobiles, applications from retail foreign-invested commercial enterprises for setting up shop in areas within the provincial jurisdiction of the place where they are located may be examined and approved by the respective provincial commerce authorities. The applications would then be reported to MOFCOM for the record.

Conditions:
1. The business area of any single shop should not exceed 5,000 m2 and the number of shops not exceeding three, while similar shops set up by the foreign investor through its foreign-invested commercial enterprise across China should not total more than 30;

2. The business area of any single shop should not exceed 3,000 m2 and the number of shops not exceeding five, while similar shops set up by the foreign investor through its foreign-invested commercial enterprise across China should not total more than 50.

3. For single shops, the business area should not exceed 300 m2.


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Posted: 19 February 2011, last updated 22 February 2011

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