Finance Articles

Equity Finance In China

Minimum Investment and Capital Contribution Schedule

Minimum Capital Requirements

Chinese foreign investment law sets minimum Registered Capital requirements at 30,000 RMB (about US$ 4,000) for LLCs, which include Joint Ventures and Wholly Foreign Owned Enterprises (in practice, higher amounts are generally needed to secure approval), and minimum Registered Capital is RMB 5,000,000 (about US$600,000) for a Foreign Invested Company Limited by Shares. Note that industry-specific regulations may raise these requirements for certain types of businesses ? in the insurance and securities industries, for example, minimum Registered Capital requirements are much higher.

Capital Contribution Schedule

There is currently a conflict between the Ministry of Commerce (MOFCOM) and the State Administration of Industry & Commerce (SAIC) as to which law is applicable in this area.

SAIC?s requirements:

20% of Registered Capital initially; remainder to be paid within 2 years of the establishment date set forth on the FIE?s Business License

MOFCOM?s requirements:

Either 15% of the total Registered Capital, or an amount equal to the minimum capital requirement (whichever is greater) must be contributed within 90 days of the date that the FIE?s business license is issued. The remainder must be contributed according to the following schedule:

Total Registered CapitalFull Payment Deadline Up to US$500,000 1 year from issuance of business license US$500,001 ? US$1 million1.5 years from issuance of business license Over US$1 million to US$3 million2 years from issuance of business license Over US$3 million to US$10 million3 years from issuance of business license Over US$10 million Up to examination and approval authority

Lump sum payments must be made within 6 months of the issuance of the FIE?s business license.

Industry-specific regulations may also modify the above requirements. Both minimum investment and capital contribution schedules are murky areas of Chinese foreign investment law, with regulations that seem to either contradict or supplement each other (no one can agree which), giving the authorities the effective ability to modify these requirements at will. The safest approach, then, would be to comply with industry-specific regulations and then look to the Company Law where these regulations are silent.

David Carnes is licensed to practice law in California. He speaks and reads Mandarin Chinese and has several years experience working with Chinese law firms and Sino-American joint ventures. His website, China Breezes, is at http://www.lunaticwisdom.com/blog1.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

When Is Interest Only A Good Mortgage Idea?
An interest only mortgage involves a repayment schedule where for a set period of time - usually five to 10 years - you only pay the interest. This means that you're making no dent in the original principal amount owing and this will have to be addressed further down the line but what it does mean is that you're making lower repayments for that initial period.

Subprime Mortgage Lending: What?s Good About It?
In recent months, the media would lead us to believe that the risks and damages possible in subprime lending have ruined everyone who has chosen this kind of mortgage While there have, indeed, been many catastrophes in this area, not all cases of subprime lending fall into this category

$150,000 ZINO Zillionaire Investment Funds Awarded to END//outdoor and Healionics
Two Pacific Northwest early stage companies secured $150,000 in investments by the ZINO Society, the premier membership organization specializing in connecting accredited investors with entrepreneurs. Of the many companies that applied to present at the ZINO Zillionaire Investment Forum (ZZIF), 28 companies were selected to progress from the screening round and were actively coached by members of the ZINO Society Coaching Board.

A Review Of The Netherlands Investment HYIP
The Netherlands Investment HYIP is a collection of individuals who are supposedly experienced stock market traders and market analysts After many years of being individual, professional traders, they have joined to form a force of super traders

Reverse Mortgage Calculator: Get What You Deserve
Having a reverse mortgage calculator will help you calculate the mortgage installments based on your current mortgage shape. There are many sorts of reverse mortgage plans, such as Housing and urban development reverse mortgage for seniors, piece of real estate equity conversion mortgage, etc. For HECM get through to the FHA for a directory of approved mortgagers. Some sites on the internet provide free information kits along with cost calculators depending on what you are looking for.

Scott Swinford Earns Certified Mortgage Planning Specialist (CMPS) Designation
Scott Swinford, a mortgage broker with AAA Home Mortgage in Crown Point, has passed the qualifying exams to earn the Certified Mortgage Planning Specialist (CMPS) Designation granted by the CMPS Institute, Ann Arbor, Michigan, a training and certifying organization created to help mortgage professionals integrate financial planning concepts into the mortgage process. CMPS designees can offer clients strategies that encompass mortgages, debt, home equity and real estate investment.

ChoicePoint's MARI Adds License Verification of Appraisers and Realtors to National Mortgage Fraud Database
The Mortgage Asset Research Institute (MARI®), a service of ChoicePoint® (NYSE: CPS), today announced the next round of enhancements to its Mortgage Industry Data Exchange (MIDEX®) anti-fraud database. MARI has now added License Verification of appraisers and realtors to the MIDEX platform. The initial launch covers 14 states and is expected to be expanded nationally by the end of the year.

Online Mortgage Lenders Offer Relief to Distressed Homeowners
The Mortgage Bankers Associations report that in the first quarter of 2007 the percentage of subprime ARMs that started the foreclosure process climbed to a record high. Analysts estimate that nearly 2 million ARMs will reset to higher rates this year and next. Option ARMs can become so costly they push homeowners into financial crisis. You can avoid "Payment Shock", losing your home, and destroying your credit, by refinancing into a less risky mortgage with an online lender.

Mortgage Protection Cover Still Complicated When It Comes To Buying
When it comes to buying mortgage protection cover it can still be hard to understand the exact nature of the cover, depending on where you buy your policy. Despite guidelines being set out by the Financial Services Authority many providers are still not giving adequate information at the time of selling the product. This is leaving many consumers unaware of the exclusions that exist in their cover, which can stop them from being eligible to claim.

Why Do I Need Mortgage Insurance?
When you start looking into home loans you may find that a lot of lenders will require that you pay for mortgage insurance or mortgage insurance has to be a part of the deal. This is especially true if you get an FHA loan or any type of federally insured loan. You might wonder what this is all about since this type of mortgage insurance doesn't actually provide you any insurance, but it's a good deal. While you may be required to keep mortgage insurance for your loan you can also opt for your own mortgage insurance, too!

Borrow Money From Those You Know In Order To Start Up Your Internet Business
Borrow money for your start up from friends, relatives, or life long associates. Don?t be shy to borrow money from family and friends. Did you know that the founder of Wal-Mart, Sam Walton borrowed $20,000 from his father-in-law?

Haynes and Boone Wins Trade Finance Deal of the Year Award
Haynes and Boone, LLP has been honored for its role in the Amapá Mineração transaction, one of Trade Finance Magazine's 2007 Deals of the Year.

Noble Investment Group Installs Aptech's Targetvue Budgeting, Forecasting and Execuvue Business Intelligence
Noble automates business analysis, budget planning to support growth of rapidly expanding portfolio

BuyerTours Realty LLC to acquire Scottsdale real estate firm Investment Realty Advisors LLC
BuyerTours Realty LLC of Bellingham Washington to purchase Investment Realty Advisors LLC of Scottsdale Arizona.