Establishing FICE and distributing Products in China

November 2005 China Briefing

In this edition we examine the application procedures for Foreign Invested Commercial Enterprises and in particular the issues concerning distribution of products as this sector is now open to foreign investment. We highlight FICE application procedures, in addition to industry specific areas in audio-visual, automotive, pharmaceutical, oil / gas, and media products in China. The main article, "Distributing Products in China & Establishing Foreign Invested Commercial Enterprises" is by Chris Devonshire-Ellis. Senior Partner, Dezan Shira & Associates, and discusses the issues surrounding the China distribution of auto parts, processed oils, pharmaceuticals, audiovisual products, books newspapers & periodicals, as well as mergers and acquisitions of FICE with domestic Chinese enterprises. A comprehensive FICE application procedural timeframe is also included. The issue also includes an explanation on the correct method for calculating registered capital requirements in China, "Total Investment Capital & Registered Capital Allocations in China"; and features regional updates also. "Consolidated Measures on Advance Recovery of China Investment" is contributed by Sabrina Zhang, Regional Partner, Dezan Shira & Associates Beijing, "Pudongs New Five Year Economic Development Plan" concerning local government policy of the development of Shanghais popular Pudong area is by Lulu Zhang, Regional Partner, Dezan Shira & Associates Shanghai, while Alberto Vettoretti, Regional Partner, Dezan Shira & Associates South China contributes two pieces, “Social Security Payments for Hong Kong, Macau & Taiwanese Residents Working in Mainland China" and "Updates on Chinese Nationals Individual Income Tax Payments"