Speech: Legal Framework for Investing in China in Shipping Related Industry

文章摘要 本文为2002年上海国际航运研讨会上的演讲,系统阐述了中国航运相关行业的外商投资法律框架。核心内容包括:中国基本法律环境与外商投资指引法规;外商投资形式(合资、合作、独资、股份公司等)的利弊;设立外商投资企业的审批程序与所需文件;外商投资企业的企业所得税、增值税、营业税等税收优惠;以及航运相关行业的特殊规定,涵盖国际海运、辅助服务、综合运输、仓储、货运代理和港口建设等领域,具体涉及外资股比限制、WTO承诺及开放时间表。文章为投资者提供了清晰的法律指引和合规要点。

This is a speech made at  "Ports & Liners China 2002"

Ports & Liners China 2002, an international symposium held by Singapore IBC Group in Hillton Hotel, Shanghai. With the attendance of leading enterprises' representatives all over the world.

Abstract:

This speech will give you some general idea about the legal framework for investing in China. It covers five parts: the first part is about the general legal environment in China and the basic laws and regulations you must know before you invest in China; the second part will tell you what form can you choose when you invest in China and the advantages and the disadvantages of the forms; the third part focuses on how to establish the foreign investment enterprises; the fourth part introduces the fax for the foreign investment enterprises: corporation income tax, value-added tax and business tax; the fifth part focuses on the particular provisions on shipping related industries, it includes: general policy of China government on foreign investment in shipping related industries, special provisions and Chinaˇs commitment to accession to WTO for the international maritime transport services, auxiliary service, international integrated transport & storage, storage and warehousing services, freight forwarding agency services and ports.

冝 Basic laws and regulations
冝 Forms of foreign investment
冝 Establishment of foreign investment enterprises
冝 Tax for foreign investment company
冝 Particular provisions on shipping related industries

Basic Laws and Regulations
冝 Basic law environment
冝 Guidance of foreign investment
冝 The law on Sino-foreign equity joint venture and its detailed rules and regulations
冝 The law on Sino-foreign cooperative enterprises and its detailed rules and regulations
冝 The law on enterprises operated wholly with foreign capitals and its detailed rules
冝 Income tax law for enterprises with foreign investment and foreign enterprises and its detailed rules and regulations
冝 Other related laws and regulations

Guidance of Foreign Investment
冝 Guidance of foreign investment orientation regulation
冝 Catalogue for the guidance of foreign investment industries
Encouraged industries
Permitted industries
Restricted industries
Prohibited industries

Forms of Foreign Investment
冝 Equity joint venture
冝 Contractual joint venture
冝 Wholly foreign owned enterprises
冝 Sino-foreign joint stock company
冝 Holding company
冝 R&D center
冝 Representative office

Equity Joint Venture(EJV)
冝 Limited liability company
冝 Legal person in China
冝 With both Chinese and foreign investors
冝 Foreign investor(s) hold(s) at least 25% shares
冝 Profit and losses shared according to investorˇs relative share of the registered capital

Contractual Joint Venture (CJV)
冝 Limited liability company or partnership without legal person status
冝 With both Chinese and foreign investors
冝 Contribute capital, distribute income or product and bear risks according to contractual arrangement
冝 Chinese investors generally get fixed benefit
冝 Can be managed by one party(usually foreigner)

Wholly Foreign Owned Enterprises (WFOE)
冝 Limited liability company without Chinese partner
冝 Straightforward management structure
冝 Better intellectual property protection
冝 Easier to terminate
冝 Lack of local support

Representative Office
冝 Non-direct-operational institution
冝 Representing its enterprise
冝 Engage in liaison services, marketing survey, product introduction and technical exchange for its enterprise

How to Get Approval
冝 Project of proposal
冝 Feasibility study report, contract (only for EJVs and CJVs) and articles of association
冝 Certificate of approval
冝 Business license

Who Can Help You
冝 Chinese partner
劔 For EJVs and CJVs, the Chinese partners can help you to prepare and submit the documents and get approval.
冝 Agency
劔 For WFOEs, you have to entrust an agency to help you go through all the procedures till you get the business license.
劔 For EJVs and CJVs, you also can entrust an agency to do it for you.

Corporation Income Tax
冝 Generally:30%+3%(local)
冝 Enterprises registered in special economic zone and manufacturing enterprises registered in state level economic development zone can be levied to 15%.
冝 Enterprises in the industry of resource, transportation, port and wharf and registered in above-mentioned areas can be reduced to 15%.

Tax Holiday
冝 Manufacturing enterprises scheduled to operate for a period over 10 years can be exempted from income tax in the first 2 years from the profit-making year and be granted a 50% reduction in the next 3 years.
冝 High-tech FIE scheduled to operate for a period over 10 years can be exempted from income tax in the first  2 years from the profit-making year and be granted a 50% reduction in the next 6 years.
冝 FIE whose annual export sales value amounts to more than 70% of their annual sales value, can pay the income tax with 50% reduction at that year.

Personal Income Tax

Turnover Tax
冝 Value-added tax (VAT)
generally:17%
冝 Business tax
劔 For transport enterprises: 3%
劔 For storage and other service: 5%

Particular Provisions on
Shipping Related Industry
冝 General policy on foreign investment
冝 International maritime transport services
冝 Auxiliary service
冝 International integrated transport & storage
冝 Storage and warehousing services
冝 Freight forwarding agency services
冝 Ports

General Policy on Foreign
Investment (Encouraged)
冝 Under the encouraged list:
劔 Public wharf construction and operation
劔 Wharf equipments designing and manufacturing
劔 Ferry facility construction and operation (JV)
劔 International maritime transport services (subject to WTO commitment)
劔 International container integrated transport (subject to WTO commitment)
劔 Storage facility construction and operation

General Policy on Foreign Investment (Restricted)
冝 Under the restricted list:
劔 Container manufacturing
劔 Maritime cargo-handling services
劔 Freight forwarding agencies services
劔 Maritime agencies services

International Maritime Transport Services (Freight & Passengers)
冝 Establishment of registered companies for the purpose of operating a fleet under the national flag of P.R.C:
冝 Permitted to establish JV shipping companies;
冝 Foreign investment shall not exceed 49% of the total registered capital of the JV;
冝 The chairman of directors and the general manager of the JV shall be appointed by Chinese side

Auxiliary Service
冝 Maritime cargo-handling services, customs clearance services for maritime transport, container station and depot services:
劔 Only in the form of joint venture
劔 Foreign majority ownership is permitted.
冝 Maritime agencies services
劔 Only in form of joint venture
劔 Foreign equity share no more than 49%
劔 The chairman of directors and the general manager of the JV shall be appointed by Chinese side

International Integrated
Transport & Storage
冝 Encouraged but subject to WTO commitments:
劔 Foreign equity share no more than 50 per cent
劔 No later than 11/12/2002, foreign majority ownership will be permitted
劔 No later than 11/12/2005, wholly foreign ownership will be permitted

Storage and Warehousing Services
冝 Construction and operation of storage related to transport are encouraged
冝 Upon accession to WTO, only in the form of joint venture, with foreign investment not to exceed 49 per cent.
冝 Within one year after Chinaˇs accession, foreign majority will be permitted
冝 Within three years after Chinaˇs accession, wholly foreign-owned subsidiaries will be permitted

Freight Forwarding
Agency Services
冝 Upon accession, foreign freight forwarding agencies which have at least three consecutive years experience are permitted to set up JV, with foreign equity share not to exceed 50 per cent; Within one year after chinaˇs accession, foreign majority ownership will be permitted; Within four years after chinaˇs accession, wholly foreign-owned subsidiaries will be permitted.
冝 The minimum registered capital of the JV shall no less than US$1million. Within four years after accession, national treatment will be accorded.
冝 Operation term of  the JV shall not exceed 20 years.

Freight Forwarding
Agency Services (2)
冝 After one year operating in china, the JVs can set up branches when the registered capital of the both sides has been provided. Another US$120,000 shall be added to the original registered capital of the JV for the set-up of each branch. Within two years after chinaˇs accession, this additional registered capital requirement will be implemented on the basis of national treatment.
冝 A foreign freight forwarding agency may set up a second JV after its first JV has been in operation for five years. Within two years after Chinaˇs accession to the WTO, this requirement will be reduced to two years.

Ports
冝 Construction and operation of ports is encouraged.
冝 The operation term can be longer than 30 years
冝 Scope of business can be expanded into related business under approval, if the amount of the investment is large and profit returns are long
冝 Income tax rate is 15%, if operation term is over 15 years can be exempted from income tax in the first 5 years from the profit-making year and be granted a 50% reduction in the next 5 years.
冝 Reinvestment in wharf, 40% of the income tax paid can be refunded

Thank You
Good luck in China!
Contact me if you need any help:
Chambers Yang
Attorney-at-law/Partner
Haworth & Lexon
Suite 606 CIMIC Tower, 1090 Century Avenue, Pudong, Shanghai 200120, P.R. China
Tel: 0086-21-68767750   Fax: 0086-21-68767740
E-mail: chambers@HLlawyers.com
Http://www.HLlawyers.com

杨春宝一级律师简介

杨春宝一级律师,大成上海高级合伙人、资本市场部主任、国资基金研究中心主任,大成中国区私募基金专业带头人、科技与文化法律研究中心联合牵头人。执业30余年,长期从事私募基金、投融资、并购重组法律服务,尤其对对赌研究颇深且具有非常丰富的实战经验,并专注于金融机构股权投资业务。2004年起多次入选The Legal 500"私募基金"和"公司与商业"等境内外各类律师榜单,代理的中国法院首例适用外国法律审理外国公司的董事损害小股东权益纠纷案入选上海高院发布的《上海法院域外法查明典型案例》和威科先行"要案头条"。入选上海涉外法律人才库、上海市司法局鼎新法治人才库、上海国有企业改制法律顾问团,具有上市公司独立董事任职资格,系多家知名高校的兼职教授或兼职研究生导师及上海市商务委跨国经营人才培训班讲师。出版《私募股权投资基金风险防控操作实务》等16本投融资法律专著。了解更多

常见法律问题

外商投资中国航运业有哪些主要形式?

主要形式包括:股权式合资企业(EJV)、契约式合作企业(CJV)、外商独资企业(WFOE)、中外合资股份公司、控股公司、研发中心和代表处。每种形式在股权结构、管理方式、责任承担上各有特点。

航运相关行业中哪些领域对外资有股比限制?

国际海运服务中外资不超过49%且董事长和总经理由中方任命;国际综合运输及仓储服务外资不超过50%(2002年底前);货运代理服务外资不超过50%(入世后)。辅助服务如码头装卸、集装箱站等可允许外资控股。

外商投资航运企业可享受哪些主要税收优惠?

一般企业所得税为30%+3%地方税,但在经济特区或国家级开发区注册的制造业企业可减按15%征收。经营期超过10年的生产性企业可享受两免三减半;高新技术企业可享受两免六减半;出口额占年销售额70%以上的企业当年可减半征收。

以上内容仅供参考,不构成法律意见。如需专业法律服务,请联系杨春宝一级律师:chambers.yang@dentons.cn

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