Newsletter
PROPOSALS TO STREAMLINE REVIEW PROCEDURES FOR FOREIGN INVESTMENT
The first meeting of the Ad Hoc Committee on Reforming the Approval System for Investment by Overseas Chinese and Foreign Nationals was convened by the Investment Commission, Ministry of Economic Affairs (MOEA), on 14 January 1999. A preliminary resolution was made to greatly simplify the procedures for approval of foreign and overseas Chinese investment. At present, prospective foreign and overseas Chinese investors must undergo an extensive, time-consuming approval process, including a preliminary company name check by the MOEA Commerce Department, examination and approval by the Investment Commission, company registration, and profit-seeking enterprise registration. Study will be given to the possibility of adopting an across-the-board or limited-scope declaration-after-the-fact system. The Investment Commission also presented three possible plans to streamline the procedure:
Plan A: Adopt an across-the-board declaration-after-the-fact system.
Plan B: Maintain existing review procedures in cases where the investment falls into the restricted category, and adopt a declaration-after-the-fact system where it falls into the permitted category.
Plan C: Adopt a declaration-after-the-fact system in case where the investment falls into the termitted category and is less than a certain threshold amount, and maintain existing review procedures in other cases.
Although no conclusions have been reached as to which kind of plan will ultimately be adopted, the trend toward simplifying the procedures is certain.