What kind of organization is the Shanghai Foreign Investment Commission (FISC)? What is FISC responsible for?
FISC, a comprehensive and authoritative working organization, is established by the Shanghai Municipal Government to improve investment environment and streamline procedures of project examination and approval.

FISC has the following responsibilities:

(1) to work out related regulations in detail, project and product lists guiding foreign investment in accordance with economic development strategy of Shanghai and industrial policy of the state.

(2) To offer foreign investors various consulting services on policies, laws and regulations, to receive visitors, to answer letters and handle complaints.

(3) To examine and approve foreign investment projects with a total investment from USD 10 million to USD 30 million each and to oversee foreign-funded projects of the city with a total investment under USD 10 million each.

(4) to coordinate and solve problems foreign investors encounter during the setting up and production stages of their enterprises.

How many forms of foreign-investment enterprises are there in Shanghai?

(1) Sino-foreign invested enterprises;

(2) Sino-foreign cooperative enterprises;

(3) Foreign-funded enterprises( with only foreign capital);

(4) Investment in the form of shares by purchasing "B share' of any enterprise in Shanghai.

What shall be included in the project proposal of a Sino-foreign joint venture?

(1) The Chinese partner: it shall include the name of the Chinese partner, a briefing about its production and business, the legal address, the name and title of the legal person as well as the name of the authoritative bureau (department).

(2) The purpose of association : The emphasis shall be laid on the necessity and the possibility of the profit resulted from export and those of import of technology.

(3) The foreign partner: it shall include the name of the foreign company, the registered country, the legal address and legal person together with his name, title and nationality.

(4) The business scope and scale: The necessity of the project construction, the demand of the product both at home and abroad, the production as well as sales areas or regions of the product shall be emphasized.

(5) Investment estimation; it refers to the total amount of fixed assets and circulation fund required.

(6) the prospect of investment & the source of capital: it shall include both the ratio of investment and ratio of capital formed by both parties.

(7) production techniques & main equipment: emphasis is laid on the superiority , suitability and reliability of the technology and equipment as well as important technological and economic indexes.

(8) The quantity and source of chief raw materials, water, electric power, gas and transport shall be included.

(9) the number, formation and source of labor shall be included.

(10) Economic efficiency with emphasis on arrangement of foreign exchange balance shall be included.

(11) Main documents:
a. The agreement contract of cooperation signed by both the parties;
b. the credibility investigation of the foreign investors.

What shall be done if a representative office wants to amend the contents of registration?

If it wants to change the name, its chief representative or representatives, its business scope, it duration and its address, a representative office shall entrust the original sponsor to apply to SMERT (Shanghai Municipal Foreign Economic Relations and Trade Commission). Once approved, it can handle its amendment at the ICAB with the certificate of approval.

How is the time limits and means for the granting of land-use right regulated?

(1)The maximum time limits for granting of land-use right is determined according to its purpose as shown below:
a. Land for residence purpose: 70 years;
b. Land for industrial purpose: 50 years;
c. Land for the purposes of education, scientific research, culture, public health and sports: 50 years;
d.Land for commercial, tourist and recreational purposes: 40 years;
e.Land for comprehensive or other purposes: 50 years;

(2)The following methods can be adopted for the granting of land-use right:
a. by agreement;
b. by tender;
c. by auction;
d. other means approved by Municipal Government.
Auction or tender shall be adopted for the granting of land-use right for commercial, tourist, recreational and luxury residence purposes. Details will be regulated by the Municipal Government separately.

How shall a foreign-invested enterprise organise its production and export if some of the products are under the administration of state export license?

A foreign-invested enterprise shall be ratified by the competent department of the State before establishment if it is going to manufacture products that are licensed for export. After production, the enterprise shall declare its annual plan of export within the scale of export ratified by the State. The competent department of the State will issue an annual export license to the enterprise.

Can a foreign-invested enterprise open a bank account at a foreign bank inside China?

With the business license issued by the State ICAB, any foreign-invested enterprise can open both bank accounts of foreign exchange and RMB at any bank or at any other financial institution which is permitted to handle foreign exchange business by the State Foreign Exchange Administration Department.