MOFCOM Reforms Record-Filing Procedures for FIEs

On October 8, the Ministry of Commerce (MOFCOM) and the National Development and Reform Commission (NDRC) issued Announcement ([2016] No.22) to promote the reform of the record-filing administration for foreign-invested enterprises. Simultaneously, MOFCOM issued the Interim Measures for Record-filing Administration for the Incorporation and Alteration of Foreign-invested Enterprises, and was effective immediately. The Law and Treaty Department of MOFCOM also released a read out on the background and main contents for the new measures, and can be found here.
 
According to the Announcement, the scope of special administrative measures for foreign investment shall be subject to relevant provisions on equity and senior management requirements laid out in the Catalogue for the Guidance of Foreign Investment Industries (Revised in 2015). If enterprises become incorporated or altered due to M&A activity with foreign investment, such alterations must still comply with all relevant existing provisions.
 
The Measures stipulate that in in the case of approving advanced recovery of investments by foreign cooperative joint ventures, all relevant parties shall go through the recording-filing procedures for such alterations.