Laws of the People's Republic of China

Circular of the Ministry of Commerce on Further Extending the Scope of Private Businesses Owned by Hong Kong and Macao Residents

Gong Shang Ge Zi [2006] No. 196 October 25, 2006

The competent departments of industry and commerce administration in all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan:

With the approval of the State Council, Mainland signed respectively with the Macao and Hong Kong SAR governments the Supplementary Provisions No.3 of Mainland and Macao Closer Economic Partnership Arrangement and the Supplementary Provisions No.3 of Mainland and Hong Kong Closer Economic Partnership Arrangement (hereinafter referred to as The Supplementary Provisions No.3). In accordance with the provisions, the scope of businesses established in Mainland by Hong Kong and Macao permanent residents of Chinese origin (hereinafter referred to as Hong Kong and Macao residents) will be extended. For the purpose of ensuring the smooth progress of this work, it is hereby notified:

I.

In accordance with Industrial Classification for National Economic Activities (GB/T4754-2002), the industries as follows will be included into the scope of businesses owned by Hong Kong and Macao residents as of January 1, 2007:

1.

Crop and plant cultivation: cultivation of grain and other crops (Subcategory No. 011); planting of vegetables and horticultural crops(Subcategory No. 012); growing of fruits, nuts, beverage and spice crops (Subcategory No. 013); planting of traditional Chinese medicines (Subcategory No. 014).

2.

Husbandry: raising of livestock (Subcategory No. 031), of pigs (Subcategory No. 032) and of poultry (Subcategory No. 033).

3.

Breeding: seawater aquaculture (Minor Subcategory No. 0411); continental culture (Minor Subcategory No. 0421).

4.

Computer maintenance: computer repair and maintenance (Subcategory No. 613); other computer services (Subcategory No. 619).

5.

Scientific exchange and extension: technological extension (Subcategory No. 771); and scientific and technological intermediary (Subcategory No. 772).

II.

Hong Kong and Macao residents who apply for registration of businesses in production and sales of seed, genetically modified plants, livestock and poultry, shall, in accordance with the Seed Law, Provisions on the Safety of Agricultural Genetically-Modified Organisms, Animal Husbandry Law, Provisions on Breeding Livestock and Poultry, and Circular on Issues Concerning the Preposed Permit for Hong Kong and Macao Residents to Establish Private Businesses (2005 No.[28]), go through the formalities for prior name approval in the local departments of industry and commerce administration; they shall apply for the preposed permit with their ID cards, certification of identity and the Notice of Prior Name Approval of Private Businesses (Hong Kong and Macao Residents) and go through necessary formalities with the duplicate copies of the required credentials, after which they may register at local offices of industry and commerce administration.

III.

Private businesses owned by Hong Kong and Macao residents who deal in the lately opened planting, husbandry and breeding industries will not have the restriction of 300m2 in operation area. Other related issues shall be addressed in accordance with Opinions on the Administration of Hong Kong and Macao Residents Establishing Private Businesses (2004 No.[190]) and Circular of the Ministry of Commerce on Further Extending the Scope of Private Businesses Owned by Hong Kong and Macao Residents (2005 No. [189]).

IV.

The competent departments of industry and commerce administration shall communicate the present circular to the offices of industry and commerce at the basic level and ensure that the working staff concerned will be organized to study and grasp the related policies and regulations and that the stipulations in Supplementary Provisions No.3 on further extending the scope of private businesses owned by Hong Kong and Macao residents will be implemented as of January 1, 2007. Meanwhile, the competent departments of industry and commerce administration shall take eligible and practical measures to intensify the publicity of the new policies and regulations and facilitate the sound development of private businesses owned by Hong Kong and Macao residents

V.

In order to obtain the latest information of registration of private businesses established by Hong Kong and Macao residents, the local competent departments of industry and commerce administration are expected to submit the original Registration of Private Businesses Established by Hong Kong and Macao Residents and report the progress of the registration work before December 10, 2006. The half-year report and the annual report of the new Registration of Private Businesses Established by Hong Kong and Macao residents (see the attachment for the sample) shall be submitted before June 10 and December 10, 2006 respectively, and the new issues arising in the work are also expected to be reported to the Department for Regulation of Private Economy.

Tel: 010-68050283/88650809/88650811

Fax: 010-68050283

Email: zhangdaoyang@saic.gov.cn

Attachment:

1.

The Supplementary Provisions No.3 on Hong Kong and Macao Residents Establishing Private Businesses in Mainland (omitted)

2.

Statistic Table of Registration of Private Businesses Established by Hong Kong and Macao Residents (omitted)