Ministry of Commerce promulgated "Measures for Administration on Foreign Investment in Leasing Sector", with 23 articles, which spell out provisions on investment form, examination and approval procedures , operation rules and supervision on the foreign investment in leasing sector. The Me
asure will be on the trial implementation on the March 5,2005.
According to China's commitments to the WTO, China would admit whole foreign owned subsidiaries in leasing sector. Therefore, Ministry of Commerce revised “Provisional Measures for Supervision and Administration on the Foreign Investment Leasing Enterprises "
First, the measure allow setting up the whole foreign-owned enterprises in the leasing service, financial leasing sectors.
Second, lower the threshold for accession. The measure advanced the lowest capitals requirements that foreign investment leasing corporations invested as US$ 5 million,
Third, changing management. The competence for examination and approval of establishing the Limited Liability Companies is delegated to the local governments.
Meanwhile, in order to better control and supervise the operation of the foreign investment financial leasing companies, and promote the development of this industry, the measure require Financing Leasing Companies should turn over their business reports and accounting reports (audited by accountant
firm)of the pervious year. The deadline is March 31, every year.
(Ministry of Commerce)
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