Dec 05, 2018 (China Knowledge) - China's Ministry of Commerce and the Ministry of Transport have endorsed the newly revised management rules on the establishment of fully foreign-owned shipping businesses in the country. The revised regulation, slated to take effect on 1st Jan 2019, will enhance the ease and opportunities for foreign shipping companies to establish wholly-owned subsidiaries in China.
The two ministries will be responsible and involved in managing the procedures of application for setting up shipping business by foreign companies, however the ministries will not be responsible for approving such applications. Applicants will have to go through the relevant procedures, with the business supervisors, required by the Law on Foreign-funded Enterprises and other related administrative rules.
The process was previously known as the management rule on the approval of wholly foreign-owned shipping companies.
Previously, in order to establish a subsidiary in China the foreign-owned shipping companies were required to hire at least 85% of local employees. Under the revised rules such condition has been eliminated.
To qualify and receive approval for the establishment of fully foreign-owned shipping subsidiary in China, foreign companies will have to follow the corporate registry rules to get business license from the industrial and commercial administrative departments. Besides that, these companies will also have to obtain a business permit from the departments in charge of transportation.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: email@example.com
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI