Contract approval

Postdate: 2016-11-09

The contract of an enterprise with foreign investment is a document concluded by the parties to the investment to set up an enterprise for the joint investment and to reach consensus on the matters concerning the establishment of the enterprise and the mutual rights and obligations.

According to the provisions of the law, the basic contents of a contract of a foreign-funded enterprise include: the purpose of investment, the scope of business and the scale of operation; the total amount of investment, fund raising, the investment and investment methods of all parties; the responsibility of all parties involved in investment; The composition of the board of directors; the source and cost of production equipment and technology; the proportion and responsibility of export products, the arrangement of foreign exchange balance of the enterprise; the term of operation and the liability for breach of contract and settlement of disputes.

Contracts of foreign-invested enterprises must be approved by the government's regulatory authority, the Foreign Trade and Economic Cooperation Bureau, for their entry into force.