Q: How does a foreign-invested limited enterprise apply for transforming into a joint stock enterprise?
A: According to Interim Provisions on Issues Concerning the Setup of Foreign Investment Joint-stock Companies (No. 1 Decree issued by the Ministry of Foreign Trade and Economic Cooperation in 1995), if the established Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and foreign-invested enterprises that apply for transforming into joint stock enterprises, they should have record profits for the recent three consecutive years. The investor of the original foreign-invested enterprise shall be appointed as the promoter (or with other promoters) and sign agreements and articles of the established enterprise, which shall be submitted to the commerce departments where the original foreign-invested enterprise is located for recordation. (1) The alternation items of foreign-invested enterprises, if not included in the list of being implemented special admittance management in accordance with State regulations, shall declare to the commerce departments for recordation through Integrated Management Information System for Foreign Investment (http://wzzxbs.mofcom.gov.cn/) by foreign-invested enterprises. (2) The alternation items of foreign-invested enterprises being engaged in special admittance management stipulated by the State, the competent commercial department of the province where the original foreign-invested enterprise makes registration shall submit the following documents: the original foreign-invested enterprise’s contracts and articles of association; its board of directors’ resolution on the enterprise’s reorganization and transformation; its investors’ resolution on terminating the original contracts and articles of association; its asset appraisal report; the agreements of promoters (including but not limited to its investor); articles of association; its business license, approval certificate and financial examination report within the latest three years; the application letter for establishment of the new enterprise; statement of assets and liabilities of promoters; feasibility study report and other documents required by the examination and approval authority.