What are the regulations on investment period of foreign-invested enterprise? | investinchina.chinaservicesinfo.com
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What are the regulations on investment period of foreign-invested enterprise?

english.legalinfo.gov.cn Updated: 2018-05-30

If a one-time investment is written in the joint-venture contract, the investing parties shall submit their subscribed shares within 6 months of the date the business license is issued; if installments are provided for in the contract, the first subscription rate of all parties shall not be less than 15% of their subscribed shares each, and shall be paid within 3 months of the date of the business license.

If the investing parties fail to pay within the specified period, the foreign-invested enterprise shall be deemed automatically dismissed, and the ratification certificate shall become invalid accordingly. Those that don’t go through canceling formalities and submit their business license, the industrial and administrative organ will confiscate their licenses and publicize the confiscation.

Any investing party of the foreign-invested enterprise that fails to pay or submit their subscribed shares in accordance with the contract will have breached the agreement. The remaining party shall urge the party in breach to pay or submit the shares immediately or no later than within one month, and the party in breach shall be deemed to have given up all rights and withdraw from the foreign-invested enterprise. The remaining party shall within one month apply for authority to dismiss the would-be foreign-invested enterprise or search for other foreign cooperative investor to bear the right and obligations of the party in breach. The remaining party may demand that the party in breach pay compensation for the economic damages caused by failure to pay or submit the shares on time.