Questions and answers about equity transfer of foreign-funded (foreign) companies

1, what type of equity transfer to the foreign Exchange Bureau to handle formalities. What formalities to handle.

(1) If a domestic institution or individual acquires a foreign equity interest in an overseas investment enterprise, the foreign Exchange Bureau shall handle the purchase and payment of the equity funds. (see 第2-3条 for details)

(2) If a domestic institution or individual transfers an equity interest to the foreign Exchange Bureau, it shall apply for a Special account for opening the assets, accounting for approval and transferring foreign exchange registration procedures for the transfer of shares. (Specific procedures and precautions see 第4-9条)

(3) If the shareholders of the domestic enterprises transfer their shares to domestic institutions or individuals, they do not need to transact formalities with the foreign Exchange Bureau;

(4) The Chinese shareholder of the Sino-Foreign joint venture shall transfer the equity to the domestic institution or individual and the foreign exchange registration of the foreign Exchange registration IC card of the local foreign exchange Bureau of the enterprise should be changed.

(5) If the foreign shareholder of an overseas-invested enterprise transfers the equity to the foreign exchange, the foreign exchange registration of the foreign Exchange registration IC card shall be changed.

2. Procedures to be taken by domestic institutions or individuals to acquire foreign equity shares in Fies

The first step, the acquisition of enterprises to their registered foreign Exchange Bureau to apply for foreign exchange registration change procedures;

The second step, the domestic acquisition direction of the foreign Exchange Bureau to apply for the purchase and remittance formalities;

(If the equity acquirer in Shenzhen, can download the business process and application form on the website of the Safe Shenzhen branch, then enter the "Capital Project Guide" → "market Business" → "Business approval of equity transfer" → "domestic institutions and individuals to acquire foreign investment enterprises ' equity purchase and payment" Download " Application form for transfer of share purchase and remittance. ）

The third step, after the merger and acquisition of enterprises without foreign ownership of shares, after the completion of the purchase and payment procedures, then by the merger and acquisition enterprises to their registered foreign Exchange Bureau for foreign Exchange registration and cancellation procedures.

3, domestic institutions or individuals to buy foreign-invested enterprises to buy and pay for the transfer of the procedures should be where to apply.

(1) The purchase of the shares of China as an individual, to the foreign Exchange Bureau of the registered enterprises;

(2) To purchase the shares of China as a domestic institution, apply to the local Exchange Bureau of the Chinese authorities.

4. Procedures for the transfer of equity rights by domestic institutions or individuals to foreign exchange offices.

The first step is to apply for or change the foreign-invested enterprise's foreign exchange registration IC card from the Foreign Exchange Bureau.

The second step, the domestic institutions or individuals to the Foreign Exchange Bureau to open a special account for the assets to become active;

(The specific process and form can be downloaded from the website of the Safe Shenzhen branch to enter the "Capital Project Guide" → "market Business" → "Equity transfer business Approval" → "foreign investors acquire equity in domestic companies and individuals" to download the application form for the opening of an asset-specific foreign exchange account. ）

The third step, foreign exchange funds from overseas import into the foreign Exchange Bureau to apply for processing foreign exchange funds approval formalities;

(The specific process and form can be downloaded from the website of the Safe Shenzhen branch to enter the "Capital Project Guide" → "market Business" → "Business approval of equity transfer" → "foreign investors acquire equity in domestic enterprises and individuals" to download the application form for transfer of money to share. ）

The fourth step, foreign investors apply for the transfer of foreign currency registration.

(The specific process and form can be downloaded from the website of the Safe Shenzhen branch to enter the "Capital Project Guide" → "market Business" → "Business approval of equity transfer" → "foreign investors acquire equity in domestic enterprises and individuals" to download the application form for the registration of transfer proceeds. ）

5. When a domestic institution or individual transfers an equity interest to a foreign party, the relevant formalities for the transfer of shares shall be processed by WHO.

(1) Account opening and accounting procedures shall be applied by domestic institutions or individuals;

(2) Foreign exchange registration of foreign currency for transfer of shares is applied by the overseas investors.

6. When a domestic institution or individual transfers an equity interest to a foreign party, the account opening and accounting procedures should be handled.

(1) to the Foreign Exchange Bureau of the registered enterprise of the merger and acquisition enterprises to apply for the shares of the Chinese as individuals;

(2) To transfer the shares of the Chinese mainland institutions to the foreign Exchange Bureau to transfer the application.

7, domestic institutions or individuals to the foreign exchange of shares, the transfer of foreign currency registration should be where to handle.

The foreign exchange registration material approved by the Exchange Bureau for the approval of the account opening and accounting procedures shall be approved by the Foreign Exchange Bureau of the registered office of the acquired Enterprise, and the foreign Exchange registration certificate of the transferred shares shall be issued.

8. Can China sell its shares to the foreign party at a nominal price?

No way. Pursuant to 8th of the regulations on mergers and acquisitions of domestic enterprises by foreign investors, the transfer of equity or sale of assets at a price significantly lower than the valuation result is prohibited and a disguised transfer of assets abroad.

9, in the direction of the foreign transfer of equity, the foreign party should be in how long to pay equity transfer funds.

In general, the foreign party shall be paid within 3 months from the date of issuance of the business license. Special circumstances need to be extended, after approval by the approving authority, should be from the date of issuance of the business license of foreign investment enterprises within 6 months to pay the full price of more than 60%, all paid in 1 years.

PS: Transfer of equity to foreign nationals, not allowed to grant.

Transferred from: http://blog.sina.com.cn/s/blog_4eaa80410100jmea.html