China Holding Company is an organization (parent company) that owns other companies’ major shareholdings. These companies are known as subsidiaries. The Board of Directors of the holding company has the authority to control or influence over the subsidiaries.
The parent company must possess total assets not less USD 400 million one year before application and paid up capital of minimum USD 30 million for a holding company. It must have strong financial backup and good credit standing. In addition, it must also have set up at least 10 enterprises or 3 investment projects.
Qualification audit → Application submission → Confirmation of Ministry of Foreign Trade & Economic → Documentation preparation → Examination & Approval
An audit that carry on by the local lawyer the foreign investor whether obtain the criteria to set up a holding company. Due to independent provincial law, therefore, the foreign investor must verify the exact place.
After auditing, a details report of the parent company and its foreign investment companies in China to be submitted to the Ministry of Foreign Trade & Economic for verification and approval.
Once the Ministry of Foreign Trade & Economic has approved, the local lawyer shall prepare the documents such as investment proposal, feasibility study report, contract, M&A, photocopies of certificate of approval, business license and inspection report by registered accountant, the balance sheet for last three years and other relevant documents.
Examination & Approval
The foreign investor shall submit all the prepared documents by the local lawyer and state the exact province, autonomous, region and territory to the Ministry of Foreign Trade & Economic and Ministry of Commerce for examination and approval. Meanwhile,
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