FDI
Visa Guide for Foreigners in China
- A negative list management system is implemented, meaning sectors not on the list are fully accessible, ensuring clear and predictable policies.
- Establishment processes are primarily based on filing rather than approval, with minimal paperwork and completion within a few business days.
- An integrated “Single Window” online platform handles all formalities, eliminating the need to navigate multiple agencies.
- Capital funds can be converted at will, and profit repatriation is straightforward, ensuring smooth cross-border capital flow.
- The Foreign Investment Law guarantees fair treatment and robust intellectual property protection, providing legal security for investors.
- Free Trade Zones offer shorter negative lists and superior services, serving as testing grounds for international standards.
FDI PROCEDURE
FDI foreign exchange registration handling subject
Within 30 days of obtaining the business license, take the business license, application form and other materials to the bank foreign exchange bureau to handle a foreign exchange registration, and get a “Business Registration Certificate”.
Open a capital account. Bank of deposit
With the business registration certificate from the first step, and a set of account opening materials including the business license, seal, legal representative’s seal, etc., go to the bank to open a capital account. This account can be opened multiple times, and can also be opened remotely
Capital remittance and entry registration requirements
When the capital remitted from abroad arrives at the account, it is necessary to immediately ask the bank to make “entry registration.” The bank will verify whether the remittance information and amount match. After successful registration, the money will be officially in place and can be used
Payment-based settlement
When payment is required, submit the contract, invoice, and other genuine proof of payment to the bank. After examination, the bank will settle the foreign exchange into RMB and pay it to your counterparty.
BASIC DOCUMENTS REQUIRED
Documents required for FDI
Application Form for Registration of Basic Information on Domestic Direct Investment
Copy of Business License (Seal affixed)
Tax Pre-clearance Form Overseas Payment of Trade in Services and Other Projects
Approval documents from relevant industry authorities or other supporting documents
WHAT DO YOU RECEIVE
What will you receive after Copyright Registration
Notification of Acceptance
Receipt of the official copyright application acceptance
Copyright Certificate
Approval of Copyright Registration Certificate
Why apply the Copyright with GWBMA?
Get official proof of your works
Put an end to any infringement
Quick & Convenient Support
Frequently Asked Questions about FDI
Learn More About FDI
What industries are foreign investors investing in China? Are there any restrictions?
A "negative list" is a list that clearly identifies industries and sectors in which foreign investment is prohibited or restricted. All industries not on the list are open to investment, and the policy is transparent, allowing investors to enter equally under the law.
Is it complicated to set up a foreign-funded company in China?
The process has been greatly simplified. Currently, it is mainly based on the filing system, not the approval system, and the required materials are simple. It can handled online through the "one-stop service" platform.
Is it convenient to move foreign exchange funds in and out of China? Can profits be remitted smoothly?
Very convenient. Foreign exchange capital can be freely converted into RMB, and the profits obtained from investment can also be freely remitted overseas. The "Foreign Law" ensures the convenience and efficiency of capital flow across borders, without the need to worry about capital lock-in.
What is foreign direct investment in China?
①The concept of foreign direct investment is defined by the International Monetary Fund (IMF) as the investment behavior where an investor from one country uses capital in country's production or operation and has certain operational control.
②Its core distinguishes it from short-term financial investments, FDI is a long-term, ongoing investment behavior, and investors usually have long-term business and strategic goals.
The process and main types of foreign investment in China
①Process: The enterprise submits the documents to the bank, and after the bank's review and approval, the foreign exchange funds are settled into the exchange payable account. The RMB funds in the exchange settlement payable account can be directly paid to the counterparty, or other compliant payment operations can be made according to the enterprise's.
②The three main types of FDI
（1） Greenfield investment refers to foreign investors establishing new enterprises or factories in China from the ground up, including the construction of production facilities, R&D centers, commercial institutions. This type of investment usually requires a longer construction period (3-5 years). The main forms of greenfield investment include wholly-owned enterprises and joint ventures
（2）Cross-border M&A is an international direct investment behavior in which overseas enterprises acquire control by purchasing or merging the equity or assets of domestic companies. The of this method is to quickly enter new markets, acquire technology or resources, and achieve globalization layout.
（3）Profits reinvested by foreign investors shall be directly used for investment such as domestic increase of capital, establishment of new enterprises or equity acquisition in China
Precautions
Applicable conditions for facilitating foreign exchange settlement of capital account income: Non-financial enterprises (except real estate enterprises and government financing platforms), stable and legal operation and no bad records, and the classification result of trade in goods is Class A (if any).
Preparation materials:
(1) Payment Order for Capital Account Foreign Exchange Income Payment Facilitation Business
(2) Currency Contribution Registration Form (limited to capital remitted from foreign investors across borders)
Handling process: Enterprises submit materials to the bank, and the bank can handle foreign exchange settlement and payment procedures without providing authenticity certification materials to the bank in advance on the premise of ensuring that the use of funds is true and compliant and in line with the current regulations on the use of capital account income.
The use of capital account income should follow the principle of truth and self-use:
(1) It shall not be used directly or indirectly for expenditures prohibited by national laws and regulations;
(2) Unless otherwise expressly provided, it shall not be used directly or indirectly for securities investment or other investment and wealth management (except for wealth management products and structured deposits with a risk rating not higher than level 2);
(3) shall not be used to issue loans to unaffiliated enterprises;
(4) It shall not be used to purchase residential properties that are not for personal use (except for enterprises engaged in real estate development and real estate leasing operations). 5. Profit remittance
Prerequisites:
(1) Make up for losses in previous years.
(2) When the company distributes the after-tax profit of the year, it shall withdraw 10% of the profit and include it in the company's statutory provident fund. If the cumulative amount of the company's statutory provident fund is more than 50% of the company's registered capital, it can no longer be withdrawn. Required materials:
(1) Written application: Submit a standardized written application to the designated foreign exchange bank, detailing the specific reasons for profit remittance and the exact amount.
(2) Profit distribution resolution document: provide the profit distribution resolution made by the shareholders' meeting or board of directors closely related to the profit remittance, and the profit distribution resolution of the partners is required for the partnership.
(3) Audited Financial Statements: Provide audited financial statements to confirm the authenticity and accuracy of their profit distribution.
(4) Tax voucher materials: The competent tax department will require enterprises to issue relevant tax certificates, such as the "Tax Filing Form for Foreign Payment of Trade in Services and Other Items". Review stage
(1) Bank review: After receiving the profit remittance application and related materials submitted by the enterprise, the bank will review the authenticity, completeness and compliance of the materials, including reviewing the reasonableness and authenticity of the source of profit in the financial statement data, and whether the logical relationship between the materials can corroborate each other.
(2) Foreign exchange registration review: After the bank passes the review, it may also need to go through the foreign exchange registration review with the State Administration of Foreign Exchange to ensure that the profit remittance complies with the national foreign exchange management regulations. After completing the above review process during the remittance stage, the request for corporate profit remittance is approved, and the profits can be remitted back to the foreign investor's account through bank channels.
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