Learn Mandarin: Learn mandarin - Measures for the Administration of Foreign-capital Lease Industry

BIZCHINA / Finance

Measures for the Administration of Foreign-capital Lease Industry

Updated: 2006-04-18 10:37

Order of the Ministry of Commerce

[2005] No. 5

The Measures for the Administration of Foreign-capital Lease Industry
were deliberated and adopted at the 1st executive meeting of the Ministry
of Commerce on January 21, 2005. They shall go into effect as of March 5,
2005.

Minister Bo Xilai
February 3, 2005

Article 1 For the purpose of promoting the sound development of
foreign-capital lease industry, regulating the business operations of
foreign-capital lease industry and preventing operating risks, these
Measures are formulated in accordance with the Contract Law of the
People's Republic of China, the Company Law of the People's Republic of
China, the Law of the People's Republic of China on Foreign-capital
Enterprises, 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 other relevant laws and
regulations

Article 2 These Measures shall apply to the foreign-capital companies,
enterprises and other economic organizations (hereinafter referred to as
the foreign investors) that establish foreign-capital enterprises within
the territory of China in the forms of Chinese-foreign equity joint
venture, Chinese-foreign contractual joint venture and solely
foreign-capital enterprise to conduct leasing business or financial
leasing business.

Article 3 The foreign-capital lease industry may take the form of a
limited liability company or a joint-stock limited company.

A foreign-capital enterprise undertaking leasing business is a
foreign-capital leasing company. A foreign-capital enterprise undertaking
financial leasing business is a foreign-capital financial leasing company.

Article 4 All foreign-capital leasing companies and foreign-capital
financial leasing companies shall abide by the relevant laws, regulations
and rules of the People's Republic of China. Their proper business
activities and legitimate rights and interests shall be protected by the
Chinese law.

The Ministry of Commerce (hereinafter referred to as the MOFCOM) is the
administrative department in charge of the foreign-capital lease industry
and also the administrative department responsible for the examination
and approval thereof.

Article 5 The leasing business as mentioned in the present Measures
refers to the business that the lessor offers a lessee the use and
proceeds of a leased property in exchange for rent.

The financial leasing business as mentioned in the present Measures
refers to the business that the lessor purchases a leased property from a
seller in light of a lessee's selection of the seller or the leased
property, then offers the lessee the use thereof in exchange for rent.

The foreign-capital financial leasing company may undertake its financial
leasing business by adopting the various forms of direct lease, sublease,
leaseback, leveraged lease, trust lease and joint lease.

Article 6 The leased property as mentioned in the present Measures
includes:

(1) various movable properties such as production equipment,
communication facility, medical device, scientific research equipment,
inspection and testing apparatus, engineering machinery and office
equipment;

(2) various transport facilities such as planes, automobiles and vessels;

(3) intangible assets accompanying the movable properties and transport
tools as mentioned in Items (1) and (2) of this article such as software
and technologies, but the value of such intangible assets may not exceed
1/2 of that of a leased property.

Article 7 The total foreign-invested assets of a foreign-capital leasing
company or foreign-capital financial leasing company may not be less than
US $ 5 million.

Article 8 A foreign-capital leasing company shall meet the following
conditions:

(1) Its registered capital meets the relevant requirements of the Company
Law;

(2) It meets the relevant requirements for the registered capital and
total investment of a foreign-capital enterprise; and

(3) The operating period for a foreign-capital leasing company in the
form of limited liability company shall not exceed 30 years in general.

Article 9 A foreign-capital financial leasing company shall meet the
following conditions:

(1) It has a registered capital not less than US$ 10 million;

(2) The operating period for a foreign-capital leasing company in the
form of limited liability company shall not exceed 30 years in general;
and

(3) It has the corresponding professionals. Its senior managerial
personnel shall have the corresponding professional qualifications and at
least 3 years of experience of practice.

Article 10 The following materials shall be submitted to the examination
and approval department for the establishment of a foreign-capital
leasing company or foreign-capital financial leasing company:

(1) A written application;

(2) A report of feasibility study affixed with the signatures of all
investors;

(3) The contract and articles of association (a foreign enterprise is
only required to submit the articles of association);

(4) The credit standing certification issued by a bank, registration
certification (photocopy) and identity certification (photocopy) of the
legal representative of each investor;

Page: 1 2 3

(For more biz stories, please visit Industry Updates)

Learn Mandarin

Tuesday, December 18, 2007

Learn mandarin - Measures for the Administration of Foreign-capital Lease Industry

No comments:

Sponsor AD

Blogroll

Labels

Blog Archive