Laws of the People's Republic of China

The Ministry of Construction, the Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Construction of the People's Republic of China and the Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China

No.116

The Provisions on the Administration of Urban Planning Service Enterprise with Foreign Investment, which were adopted at the 65th Executive Session of the Ministry of Construction on December 13, 2002, and adopted at the 2nd Ministerial Session of the Ministry of Foreign Trade and Economic Cooperation on January 30, 2003, are hereby promulgated and shall enter into force on May 1, 2003.

Minister of the Ministry of Construction Wang Guangtao

Minister of the Ministry of Foreign Trade and Economic Cooperation Shi Guangsheng

February 13, 2003

Provisions on the Administration of Urban Planning Service Enterprise with Foreign Investment

Article 1

In order to further the opening to the outside world, to regulate the foreign companies, enterprises and other economic organizations or individuals investing in urban planning service enterprises, and to strengthen the administration of the urban planning services carried out by urban planning service enterprises with foreign investment, these Provisions have been formulated in accordance with the Law of the People's Republic of China on Enterprises with Foreign Investment, the Law of the People's Republic of China on Chinese-foreign Equity Joint Ventures, the Law of the People's Republic of China on Chinese-foreign Contractual Joint Ventures, and the Law of the People's Republic of China on Urban Planning.

Article 2

These Provisions shall apply to the establishment of urban planning service enterprises with foreign investment within the People's Republic of China, to the application for the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services, and to the supervision and administration of urban planning service enterprises with foreign investment.

Article 3

The urban planning service enterprises with foreign investment as used in these Provisions refer to the Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and enterprises with foreign investment that are established in the People's Republic of China and undertake urban planning services. The urban planning services as used in these Provisions refer to the activities of formulation and consultation of urban planning, excluding the overall urban planning.

Article 4

To undertake urban planning services in China, a foreign company, enterprise or other economic organization or individual must establish a Chinese-foreign equity joint or contractual joint venture or enterprise with foreign investment pursuant to law, and obtain the Certificate of Qualification of Enterprises with Foreign Investment for Urban Planning Services.No one may undertake urban planning services without the Certificate of Qualification of Enterprises with Foreign Investment for Urban Planning Services.

Article 5

The administrative department of foreign trade and economic cooperation under the State Council shall be in charge of the administration of the establishment of urban planning service enterprises with foreign investment; the administrative department of construction under the State Council shall be in charge of the administration of the qualification of urban planning service enterprise with foreign investment.The administrative departments of foreign trade and economic cooperation of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government shall be in charge of the preliminary examination of the establishment of urban planning service enterprises with foreign investment within their respective administrative areas; the administrative departments of urban planning of the local people's governments at the county level and above shall be in charge of the supervision and administration of the urban planning services carried out by urban planning service enterprises with foreign investment within their respective administrative areas.

Article 6

For the establishment of a urban planning service enterprise with foreign investment, the following conditions must be met, apart from the conditions provided for by the relevant laws and regulations of China on enterprises with foreign investment:

1.

The foreign party is an enterprise or professional technician engaging in urban planning services in its/his home country or region;

2.

Having 20 or more professional technicians specializing in urban planning, construction, road traffic, gardens and landscape, as well as the relevant engineering etc, among whom, foreign professional technicians shall account for no less than 25% of all the professional technicians, there shall be at least 1 foreign professional technician specializing in urban planning, construction, road traffic, garden and landscape.

3.

Having technical equipment and fixed work site in conformity with the state provisions.

Article 7

To apply for the establishment of a urban planning service enterprise with foreign investment, a party shall apply for verification and approval of the name of the enterprise with foreign investment to be established with the State Administration for Industry and Commerce or the local administration for industry and commerce authorized thereby.

Article 8

After obtaining the approval for the name of the enterprises with foreign investment to be established, the applicant shall file the application for establishment of urban planning service enterprise with foreign investment with the administrative department of foreign trade and economic cooperation of the people's government of the province, autonomous region or municipality directly under the Central Government where the enterprise to be established is located, and submit the following materials:

1.

Application form for the establishment of enterprises with foreign investment signed by the legal representative of the investing party;

2.

Feasibility study report, project proposal, as well as the scheme on establishment of the enterprise (including the professional personnel, plans on technical equipment and area of the work site, etc) formulated or acknowledged by the investing party;

3.

Contract and articles of incorporation of the enterprises with foreign investment signed by the legal representative of the investing party (only articles of incorporation are required in respect of an enterprises with foreign investment);

4.

Notice for preliminary verification and approval of the enterprise name;

5.

Certificate of legal person registration and bank credit certificate of the investing party;

6.

Documents of tenancy and certificates of the board chairman, directors, managers, and persons in charge of engineering and technology to be dispatched by the investing party;

7.

Balance sheets and statements of gains and losses of the investing party of the last three years that have been audited by registered accountants or accounting firms;

8.

Certificate of enterprise registration and bank credit certificate of the enterprise undertaking urban planning service of the country or region where the foreign investor is located;

9.

Certificate of experience and achievements of urban planning services issued by the government authority or trades society, institute, or notary agency of the country or region where the foreign investor is located.

Article 9

The administrative departments of foreign trade and economic cooperation of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government shall finish the preliminary examination within 30 days from accepting the application; and if the approval is granted, submit the application to the administrative department of foreign trade and economic cooperation under the State Council.

Article 10

The administrative department of foreign trade and economic cooperation under the State Council shall, within 10 days from receiving the application materials that have passed the preliminary examination, submit such materials to the administrative department of construction under the State Council for opinions. The administrative department of construction under the State Council shall present the opinions within 30 days from receiving the application materials. The administrative department of foreign trade and economic cooperation under the State Council shall, within 30 days from receiving the written opinions from the administrative department of construction under the State Council, make the decision on whether to approve the application. If the approval is granted, the certificate of approval shall be issued to the enterprises with foreign investment; if not, the reasons shall be explained in written form.

Article 11

After obtaining the certificate of approval for enterprise with foreign investment, the applicant shall make the industrial and commercial registration of enterprise pursuant to law, and draw the business license.

Article 12

After drawing the business license of enterprise as legal person, the applicant shall apply for the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services with the administrative department of construction under the State Council.

Article 13

The following materials shall be submitted for application for the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services:

1.

Application form for the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services;

2.

Certificate of approval for enterprise with foreign investment;

3.

Business license of enterprise as legal person;

4.

Employment contracts and certificates of professional qualification of the professional technicians which have been put on record by the department of labor and personnel;

5.

Materials on the technical equipment of the enterprise.

Article 14

A urban planning service enterprise with foreign investment shall, within 30 days after obtaining the Certificate of Qualification of Enterprises with Foreign Investment for Urban Planning Services, put that on record with the administrative department of urban planning of the city or county where it is registered.

Article 15

Where a urban planning service enterprise with foreign investment contracts any task of urban planning service of a place other than its place of registration, it shall put that on record with the administrative department of urban planning of the city or county where the task is located.

Article 16

The materials submitted by the applicant shall be in Chinese, if the certificates are in any foreign language, they must be accompanied by Chinese translations.

Article 17

When undertaking urban planning services, a urban planning service enterprise with foreign investment must observe the relevant laws and regulations, technical standards and criteria of China on urban planning.

Article 18

Every foreign technician employed by a urban planning service enterprise with foreign investment shall reside in China for no less than 6 months per year.

Article 19

The administrative department of construction under the State Council shall conduct an annual inspection each year over the urban planning service enterprises with foreign investment with the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services. Those who failed to meet the qualification conditions, their Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services shall be withdrawn.

Article 20

Where a Chinese entity with the Certificate of Qualification of Entity for Formulating Urban Planning is restructured or reorganized to form a Chinese-foreign equity joint or contractual joint urban planning service enterprise, it shall return its Certificate of Qualification of Entity for Formulating Urban Planning.

Article 21

When a urban planning service enterprise with foreign investment is shutout, cancellation and terminate, it shall return its Certificate of Qualification of Enterprises with Foreign Investment for Urban Planning Services.

Article 22

It is strictly prohibited to commission any task of urban planning service to an enterprise with foreign investment without the Certificate of Qualification of Enterprises with Foreign Investment for Urban Planning Services. It is strictly prohibited to commission any task of services relating to the overall urban planning to an enterprise with foreign investment.

Article 23

For those contracting urban planning service tasks without the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services, the administrative department of urban planning of the local people's government at the county level or above shall order the offender to stop the illegal activities, and impose on it a fine from 10,000 yuan to 30,000 yuan. And the relevant departments may not approve the illegal achievements.

Article 24

Where a urban planning service enterprise with foreign investment, in violation of these Measures, undertakes services of formulation of the overall urban planning, the administrative department of urban planning of the local people's government at the county level or above shall order it to correct; if the circumstances are serious, the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services shall be withdrawn by the department that issued it. Where a urban planning service enterprise with foreign investment practices frauds and deceitfully obtains the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services, the qualification certificate shall be withdrawn by the department that issued it.After withdrawing the certificate of qualification, the department that issued it shall notify the registration department of the relevant information. The enterprise whose qualification certificate has been withdrawn shall apply for nullification of registration with the registration department; those failing to do so will be dealt with by the registration department pursuant to law.

Article 25

If any party, in violation of these Provisions, commissions any urban planning service task to an enterprise with foreign investment without the Certificate of Qualification of Enterpriseswith Foreign Investment for Urban Planning Services, or commissions any overall planning service task to a urban planning service enterprise with foreign investment, the department at the higher level shall correct such act, and investigate for the administrative responsibilities of the relevant responsible personnel; and prosecute for the criminal responsibilities if a crime is constituted.

Article 26

The power to interpret these Provisions shall remain with the administrative department of construction under the State Council and the administrative department of foreign trade and economic cooperation under the State Council according to their respective functions.

Article 27

These Provisions shall be referred to in respect of the establishment of urban planning service enterprises in the mainland of China by investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan.

Article 28

These Provisions shall enter into force on May 1, 2003.