Instead of approving the new Administrative Measures on Record Filing for the Establishment of and Change to Foreign-Invested Enterprise initially released as a draft for public comment, the Ministry of Commerce (“MOFCOM”) issued on July 30, 2017, the amendments to the existing Administrative Interim Measures on Record Filing for the Establishment of and Change to Foreign-Invested Enterprises (the “Amendments”).
The Amendments confirm that merger and acquisition in domestic listed or non-listed enterprise by foreign investors, this transaction must be submitted through the record-filing system and is no longer subject to examination and approval procedures, unless included on the negative list.
According to MOFCOM’s Announcement No. 37 , published along with the Amendments, mergers and acquisitions that transform domestic enterprises into foreign-invested enterprises are subject to record-filing procedures to establish the foreign-invested enterprise. The Amendments add that any further changes to listed enterprises subject to compulsory disclosure must be filed within five days after the relevant party discloses the information.
The Amendments keep other changes previously introduced in the draft for public comment.
Date of issue: July 30, 2017. Effective date: July 30, 2017