Laws of the People's Republic of China

The Ministry of Finance

Circular of the Ministry of Finance on Issues Concerning Financial Registry of Enterprises with Foreign Investment

CaiGongZi [1996] No.260

July 29, 1996

Departments (bureaus) of finance of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan, offices of financial supervision commissioner of the Ministry of Finance stationed in various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan:

Recently, some inquiries about the financial registry of Chinese-foreign equity joint ventures and contractual joint ventures co-established by enterprises and institutions under central departments, and local enterprises and institutions, after investigation, the following shall be clarified:

According to the relevant provisions, enterprises with foreign investment should accomplish financial registry at the Ministry of Finance within 30 days since the procurement of business license from the industrial and commercial administrations. The following principles should be observed with regard to the financial registry for the Chinese-foreign equity joint ventures and contractual joint ventures co-established by enterprises and institutions under central departments, and local enterprises and institutions: financial registry should be accomplished at the office of financial supervision commissioner in case of a over 50% investment of the total for central enterprises or institutions; otherwise, if the investment of central enterprises or institutions is lower than 50%, local financial administrations should be the place for registry. The above-mentioned ratio of investment should be determined by the offices of financial supervision commissioner and local financial administrations.

The offices of financial supervision commissioners and local financial administrations should coordinate the financial management of the Chinese-foreign equity joint ventures and contractual joint ventures co-established by enterprises and institutions under central departments, and local enterprises and institutions, and pursue management and supervision of the enterprises the financial registry of which fall within their scopes. Official files concerning the supervision and management of the enterprises should be mutually copied for each other's records.