Tag Archives: Verification Report

CAPITAL VERIFICATION REPORT – STILL REQUIRED?
Mar. to Jun. 2015 China Bulletin

As reported in New Foreign Exchange Rules for FIEs, a foreign invested enterprise (FIE) in China should no longer be required to apply through the State Administration for Foreign Exchange (SAFE) to verify receipt of an injection of paid-in capital.  It need no longer hire a qualified CPA to produce a Capital Verification Report (CVR).  Instead, the FIE can request its SAFE-certified bank handle the capital registration procedure. Continue reading

CHANGES TO CHINA’S COMPANY LAW
Feb. to June 2014 China Bulletin

On March 1, dramatic amendments to the Company Law came into effect, eliminating minimum capital requirements and mandatory payment periods (e.g., an initial contribution of 20% with the remainder made within two years) for all companies, including foreign-invested enterprises (FIEs).  The shareholders now determine a company’s capital contributions according to operational needs.  Companies no longer must submit to an annual inspection but now only file an annual report (Annual Report Notice, English translation).  For many companies, the amendments also eliminate the requirement of a capital verification report to evidence cash contributions.  Certain requirements remain unchanged, however, Continue reading