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Question Six:

Is it compulsory for the registered capital to be proportionate to the total investment for foreign investment enterprise?

Answer:

As for the proportion of the registered capital to the total investment for the Sino-foreign joint venture, please refer to the following stipulations:

(1) For Sino-foreign joint ventures with total investment below USD 3 million (3 million included), the registered capital should at least account for 70% of the total investment.

(2) For Sino-foreign joint ventures with total investment between USD 3 million and 10 million (10 million included), the registered capital should at least account for 50% of the total investment. And for those with total investment below USD 4.2 million, the registered capital should not be less than USD 2.1 million.

(3) For Sino-foreign joint ventures with total investment between USD 10 million and 30 million (30 million included), the registered capital should at least account for 50% of the total investment. And for those with total investment below USD 12.5 million, the registered capital should not be less than USD 5 million.

(4) For Sino-foreign joint ventures with total investment above 30 million (30 million included), the registered capital should at least account for 30% of the total investment. And for those with total investment below USD 36 million, the registered capital should not be less than USD 12 million.

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Dongguan is a newly-rising industrialized city in China, which is well-known for its developed manufacturing and industrial chain. Meanwhile, it is an international manufacturing base with pillar industries of electronic information, communication equipment, textile and garment, furniture, building material, toy, paper-making, food and beverage, hardware and plastics, etc. Take Dongguan’s IT industry for example, more than 3700 enterprises establish an important manufacturing base and sourcing center of IT products in the world.

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Mayor of Dongguan city, Yuan Baocheng, met the Hungarian delegation led by Istvan Uihelyi, vice chairman of Hungary Parliament, on November 18th.
China Foreign Trade E-Commerce Meet ing & The 2nd FTF Annual Meeting 2012 was held in Song Shan Lake, central part of Dongguan city, on November 8th.
China Processing Trade Products Fair (CPTPF), held from September 16 to 19, consisted of 10 special events such as the high-level forum for development of processing trade, high-level dialog of circulation trade enterprises and processing trade enterprises and procurement linkage, which increased the influence and effectiveness of CPTPF and achieved a win-win deal.
Humen Port succeeded in attracting the project of South China Petrochemical Trading Center, up to 3 billion RMB, at a recent promotion in Shenzhen.

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