Trade Resources Policy & Opinion Introduces Comprehensive Situation of Yunnan: Investment

Introduces Comprehensive Situation of Yunnan: Investment

(i)Policy and Administrative Rules

Catalogue of Related Laws

Foreign Trade Law of the People's Republic of China

Customs Law of the People's Republic of China

Law of the People's Republic of China on Import and Export Commodity Inspection

Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures

Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures

Law of the People's Republic of China on Foreign-Capital Enterprises

Company Law of the People's Republic of China

Law of the People's Republic of China on the Entry and Exit Animal and Plant Quarantine

Law of the People's Republic of China on Control of the Entry and Exit of Aliens

Law of the People's Republic of China on the Control of the Exit and Entry of Citizens

Securities Law of the People's Republic of China

Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises

Individual Income Tax Law of the People's Republic of China

Law of the People's Republic of China on the Administration of Tax Collection

Environmental Protection Law of the People's Republic of China

Law of the People's Republic of China on Evaluation of Environmental Effects

Law of the People's Republic of China on Promotion of Cleaner Production

Law of the People's Republic of China on Prevention and Control of Desertification

Marine Environment Protection Law of the People's Republic of China

Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution

Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste

Law of the People's Republic of China on Prevention and Control of Water Pollution

Law of the People's Republic of China on Prevention and Control of Environmental Noise Pollution

Law of the People's Republic of China on Prevention and Control of Radioactive Pollution

Frontier Health and Quarantine Law of the People's Republic of China

Labor Law of the People's Republic of China

Trade Union Law of the People's Republic of China

Searching Website for the Related Laws

1. Searching System of Laws and Regulations of China (website of National People's Congress of China)

http://law.npc.gov.cn:87/home/begin1.cbs

2. China Legislative Information Network System

http://www.chinalaw.gov.cn/jsp/jalor/index.jsp

3. Ministry of Commerce

http://www.mofcom.gov.cn

the above-mentioned websites are for reference only.

(ii) Priority Industries

The priority industries include:

1. Storage, preservation and processing of grain, vegetable, fruit, poultry, and livestock;

2. Forest planting and introduction of new breeds;

3. Introduction, development and sale of flower and its breeding techniques; construction and operation of modern flower garden;

4. Comprehensive use of bamboo resources;

5. Planting and processing of natural spices, edible fungus;

6. Development and protection of water resource;

7. Pollution alleviation and environment protection of Dianchi Lake;

8. Development and manufacturing of green food and health food;

9. Comprehensive use of sugar;

10. Construction and management of road, independent bridge and tunnel;

11. Technology development and production of coal;

12. Phosphorous mining, and phosphorous composite fertilizer and phosphorous chemical products manufacturing;

13. Development and production of herbal medicine and bio-medicine;

14. Development, construction and management of tourism facilities and its accessory facilities.

Preferential treatment will be granted for foreign investment in the following 14 industries:

High quality silk production and breeding of silkworm;

Forest protection, tree planting, grass planting in the state key projects and their follow-up projects;

Development and application of water saving irrigation techniques;

Development and production of techniques of coal processing;

Development and production of featured food resources;

Processing of potato;

Natural rubber and linen processing and development;

Animal and herbal medicine development and production (except protected species);

Exploration and development of copper, lead, zinc, and nickel;

Production of phosphorous chemical products;

Manufacturing of diesel engine and its parts;

Construction and management of gas supply, heat supply, and water supply and drainage system (controlled by Chinese side in big and middle-sized cities);

Development, construction and management of tourism facilities and its accessory facilities;

Road passenger transport.

http://www.yn.gov.cn

(iii) Procedures for Setting up Company

Setting up a wholly foreign-owned company

Contact office: Foreign Investment Administration Division, Department of Commerce, Yunnan Province

Telephone: 86-871-3168175

Address: 175 Beijing Road, Kunming

Time limit of case-handling:10 working days

Charge:free

Relevant laws:The Foreign –invested Enterprise Law, Detailed rules on the Foreign-invested Enterprise Law

Procedures

Doing Business in Yunnan Province of China: Investment

Qualification of applicant: foreign enterprise, business organization, individual

Required documents:

(1) letter of application signed by the legal representative or authorized person;

(2) Feasibility study report signed by legal representative or authorized person;

(3) Articles of association signed by legal representative or authorized person;

(4) legal certification documents of investor and credit certification document (such as bank's certification, deposit receipt, annual auditing report of accountant, certificate of title to house property or approved business license of Taiwan

investor);

(5)Note:

a. other documents : A. the Enterprise Name Registration Approval Notice issued by the industrial and commerce administration bureau;B. list of member of the board signed by the investor; C. legal paper of the investors such as passport and ID card;

b. List of imported equipments;

c. Copy of joint venture contract if more than two foreign individuals invest;

d. authorization paper.

Registration fees

Doing Business in Yunnan Province of China: Investment_1

(iv) Living Environment

City Life Environment

The central urban area of the capital city of Kunming is about 180 square kms, and 30% of it is covered with trees and grass. The infrastructure is improving in water, gas and electricity supply. The surrounding 200 kilometers radius area is connected with high grade road, Kunming-Hekou, Guiyang-Kunming, Chengdu-Kunming, Nanning-Kunming railway links Yunnan with other provinces and countries. The annual visitor reaches 8 million, and over 100 domestic and international flight routs are in operation. The Kunming-Bangkok highway and the pan-Asia railway under contemplation will link Kunming with neighboring countries.

Kunming ranked in the first 20 cities in terms of living environment, in 2006 The Blue Book of City Competitiveness: the No. 4 Report on City Competitiveness.

Residence Permit for Foreign Investors and Employees

When applying for residence permit, the applicant need to answer relevant questions and submit the following documents:

1. Letter from employer organization.

2. Application Form for Visa and Residence Permit.

3. Two inches personal photo without hat.

4. Original of passport, valid Chinese Visa and copy of eatry seal.

5. Original and copy of Health Certificate for International Traveler issued by Yunnan Exit-Entry Inspection and Quarantine Bureau.

6. Original and copy of Certificate of Stay.

7. Other evidences related to residence:

(1) by investor:original and copy of Certificate of Approval, business license, Certificate of Employment for Foreigner or Certificate of Foreign Expert except individual with over USD 1 million investment in western region.

(2) by employee:Certificate of Employment for Foreigner or Certificate of Foreign Expert, or the performance approval by the Department of Culture, or Registration Certificate for Permanent Representative Office and Certificate of Employment for staff working in permanent representative office.

Original and copy of Certificate of Approval, business license for foreign-invested enterprise; or original and copy of business license and other registration certificate for domestic enterprises and organizations and units concerning to foreign affairs.

Note: the following three categories of people can only apply residence permit with employment visa (Z visa):

Ordinary management and technical staff (under vice general manager);

Foreign expert working for public institution, foreign teacher and other management and technical staff;

For non-representative working in foreign permanent representative office.

(3) For parents, spouse and child: original and copy of residence permit of investor or employee;marriage document, kindred document, the Chinese version of non-English document translated by professional translation agencies or companies are required.

(v) Reference Prices of Basic Elements

1. Water Price (tap water, water for industry use, etc.)

Table of Current Water Charges in Kunming (reference price)

Doing Business in Yunnan Province of China: Investment_2

Water Supply Facility Construction Fee (reference price)

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2. Electricity Charge (electricity for industry use, domestic use, etc.)

Charges of Different Voltages (reference price)

Doing Business in Yunnan Province of China: Investment_4

Table of Electricity Charges in Kunming (reference price)

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3. Labor Cost

Salary Level (reference cost)

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4. Others

Gas Supply Facilities Construction Charges (reference price)

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Gas Price (reference price)

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Related Articles:

Doing Business in Yunnan Province of China: Survey

Doing Business in Yunnan Province of China: Economy

Doing Business in Yunnan Province of China: Development Zones

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