Capital reduction of wholly foreign-owned enterprises

A foreign-funded enterprise is an independent economic entity, operating independently, accounting independently, and bearing legal responsibilities independently. In terms of organizational form, a foreign-funded enterprise may be a legal person or an unincorporated entity. A foreign-funded enterprise with the qualifications of a legal person shall acquire the status of a legal person according to law. According to the provisions of the Law on Foreign funded Enterprises, the establishment of foreign-funded enterprises must be conducive to the development of China's national economy, and the State encourages foreign-funded enterprises that adopt international advanced technology and equipment and export all or most of their products.

2024-03-01 21:27:53 1518 people helped

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According to the provisions of China's foreign exchange regulations, the borrowing of foreign loans by foreign-funded enterprises is a capital account and should comply with the legal provisions on foreign exchange under capital account. Foreign funded enterprises borrowing foreign loans shall report to the Administration of Foreign Exchange for the record, and the State shall implement a registration system for foreign debts. According to relevant regulations, if a foreign-funded enterprise borrows foreign debt for more than one year (excluding one year), the maximum amount of borrowing shall be the difference between the total investment of the borrowing enterprise and its registered capital; If the borrower's registered capital is equal to the total investment, it can only borrow small and short-term loans within one year. A foreign-funded enterprise that intends to borrow money from its overseas parent company shall, within 15 days after the formal signing of the loan contract, carry the following materials to the local foreign exchange bureau for foreign debt registration:; (2) Copy of the business license of the borrowing enterprise; (3) Copy of the approval certificate of the borrowing enterprise; (4) Copy of the latest capital verification report of the borrowing enterprise; (5) Original of the loan contract: the original of the foreign debt contract with a copy attached. If the contract is in a foreign language, a Chinese translation of the main terms of the contract shall be attached with the seal of the debtor's unit. Two important terms must be added: 1) "According to the Regulations of the People's Republic of China on the Administration of Foreign Exchange revised on January 14, 1997 Article 25 stipulates that the debtor shall go through the foreign debt registration procedures with the foreign exchange administration department after the debt contract is signed; The registration document issued by the foreign exchange administration department shall be one of the legal documents necessary for the effectiveness of the debt contract. " 2) "The debtor shall, in accordance with the Administrative Provisions on the Settlement, Sale and Payment of Foreign Exchange promulgated in 1996, go through the procedures for repayment of the principal and interest of foreign debts.";