Shenzhen Qianhai

Relevant Regulation Documents:

“Detailed Implementation Rules for the Pilot Program of Facilitating Examination for Revenue Payment under Capital Accounts in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone” (Shen Wai Guan [2018] No.20)

Release Date: March 8. 2018

Pilot Scope: Qianhai Cooperation Zone

Capital Account Income: 

Capital of foreign-funded enterprises, foreign debt of domestic enterprises, repatriation funds of domestic enterprises listed abroad

Eligible Enterprises:

1. Registered within Qianhai Cooperation Zone.

2. Have not committed any serious violation of foreign exchange laws and regulations in the past three years.

3. Trade in goods catagorised as band A (if have).

4. Non-financial companies, non-real estate companies and non-governmental financing platform.

5. The actual tax payable in the previous year or in the recent 12 months is greater than or equal to RMB100,000, or Hong Kong-funded enterprises.

Pilot Type of Business:

When pilot enterprises’ income of capital project is used in payment, showing “capital account foreign exchange account order letter” is good enough to process transactions in the banks without providing proof for authenticity of each transaction in advance.

Pilot Banks: Banks in Shenzhen

Limits:

Pilot enterprises capital account income amount*macro-prudential assessment coefficient

The coefficient is temporarily decided as 1. The State Administration of Foreign Exchange can adjust the time ratio and macro-prudential assessment ratio according to foreign exchange receipts and expenditure trend.

When the macro-prudential assessment coefficient is lower than 1, pilot enterprises is not eligible for the facilitation of payment and examination in terms of capital account income, and is subject to the current capital account’ settlement of exchange and policies on payment management.

Receipts and Records:

The enterprise shall keep the payment receipts and other relevant authenticity certificates for two years. The receipts are kept for post-supervision and verification by the banks and the State Administration of Foreign Exchange.

Miscellaneous: N/A

Guangdong Pilot Free Trade Zone

Relevant Documents:

“Detailed Implementation Rules for the Pilot Program of Facilitating Examination for Revenue Payment under Capital Accounts in Guangzhou Nansha New District and Zhuhai Hengqin New District of China (Guangdong) Pilot Free Trade Zone ” (Yue Hui Fa [2018] No.23)

Release Date: May 22, 2018

Pilot Scope: Guangzhou Nansha New District and Zhuhai Hengqin New District of Guangdong Pilot Free Trade Zone

Capital Account Income: 

Capital of foreign-funded enterprises, foreign debt of domestic enterprises, repatriation funds of domestic enterprises listed abroad

Eligible Enterprises:

1. Registered within Guangdong Pilot Free Trade Zone Nansha and Hengqin District.

2. Non-financial companies, non-real estate companies and non-governmental financing platform.

3. The business scope of foreign-funded enterprises shall be subject to Catalogue of Industries for the Guidance of Foreign Investment for Encouraging Foreign Investment.

4. Have not committed any serious violation of foreign exchange laws and regulations in the past two years.

5. Trade in goods catagorised as band A (if have).

Pilot Type of Business:

When pilot enterprises’ income of capital project is used in payment inside the country, showing “capital account foreign exchange account order letter” is good enough to process transactions in the pilot banks without providing proof for authenticity of each transaction in advance.

Pilot Banks: 

Pilot enterprises in Nanshan District of Guangdong Pilot Trade Free Zone shall choose banks in Guangzhou to process pilot business;

Pilot enterprises in Zhuhai Hengqin District of Guangdong Pilot Trade Free Zone shall choose banks in Zhuhai to process pilot business.

Limits:

Pilot enterprises capital account income amount*macro-prudential assessment coefficient

The coefficient is temporarily decided as 1. The State Administration of Foreign Exchange can adjust the time ratio and macro-prudential assessment ratio according to foreign exchange receipts and expenditure trend.

When the macro-prudential assessment coefficient is lower than 1, pilot enterprises is not eligible for the facilitation of payment and examination in terms of capital account income, and is subject to the current capital account’ settlement of exchange and policies on payment management.

Receipts and Records:

The enterprise shall keep the payment receipts and other relevant authenticity certificates for two years. The receipts are kept for post-supervision and verification by the banks and the State Administration of Foreign Exchange.

Miscellaneous: N/A

Xiamen Area in Fujian Pilot Free Trade Zone

Relevant Documents:

“Detailed Implementation Rules for the Pilot Program of Facilitating Examination for Revenue Payment under Capital Accounts in Xiamen Area of China (Fujian) Pilot Free Trade Zone ”

Release Date: October 10, 2018

Pilot Scope: Xiamen Area of China (Fujian) Pilot Free Trade Zone

Capital Account Income: 

Capital of foreign-funded enterprises, foreign debt of domestic enterprises, repatriation funds of domestic enterprises listed abroad

Eligible Enterprises:

1. Registered within Xiamen Pilot Free Trade Zone.

2. Non-financial companies, non-real estate companies and non-governmental financing platform.

3. Enterprises that have not committed any serious violation of foreign exchange laws and regulations in the past three years, not monitored by capital account information system, and trade in goods catagorised as band A (if have);

Or already have established for more than one year and not exceeding three years, have not committed any serious violation of foreign exchange laws and regulations since registration date of business, not monitored by capital account information system and trade in goods catagorised as band A (if have);

Or foreign-funded enterprises that have established less than a year but paid-in capital of which is more than USD20,000,000.

Pilot Type of Business:

When pilot enterprises’ income of capital project is used in payment inside the country, showing “capital account foreign exchange account order letter” is good enough to process transactions in the pilot banks without providing proof for authenticity of each transaction in advance.

Pilot Banks: 

Banks and its branches catagorised as B and above in terms of assessment on banks executing foreign exchange management regulations by the State Administration of Foreign Exchange Xiamen Bureau

Limits:

Pilot enterprises capital account income amount*time coefficient*in yearly order*macro-prudential assessment coefficient

The time coefficient is temporarily decided as 0.25. The yearly order refers to how many years have passed since business registration. When the time coefficient is above 1, take 1 as the coefficient. The macro-prudential coefficient is temporarily decided as 1.The State Administration of Foreign Exchange can adjust the time ratio and macro-prudential assessment ratio according to foreign exchange receipts and expenditure trend.

When the time coefficient is lower than 1, pilot enterprises is not eligible for the facilitation of payment and examination in terms of capital account income, and is subject to the current capital Account’ settlement of exchange and policies on payment management.

Receipts and Records:

The enterprise shall keep the payment receipts and other relevant authenticity certificates for five years. The receipts are kept for post-supervision and verification by the banks and the State Administration of Foreign Exchange.

Miscellaneous: 

The pilot banks shall make note “Facilitation Pilot” under “detailed use of foreign exchange settlement” of capital account information system when dealing with the foreign exchange settlement transactions.

The pilot banks shall make note“Facilitation Pilot”under “transaction remarks”when dealing with domestic payment transactions.

Fujian Special Economic Zone

Relevant Documents:

“Detailed Implementation Rules on Facilitating Capital Project Management of Taiwan-funded Enterprises in Fujian Special Economic Zone”

Release Date: July 12, 2018

Pilot Scope: 

Fuzhou Area and Pingtan Area, Quanzhou Financial Services Real Economy Comprehensive Reform Pilot Zone and Zhangzhou Taiwanese Investment Zone

Capital Account Income: 

Capital, funds in the domestic asset realisation account and the domestic reinvestment special account, foreign debt, repatriation funds of enterprises listed abroad and other foreign exchange income from capital account

Eligible Enterprises:

1. Registered within Fujian Special Economic Zone

2. Taiwan-funded enterprises, non-real estate enterprises

3. Foreign exchange management of trade in goods NOT catagorised as band B or C (if have).

It is not in the status of “operations control” under the capital account information system

Pilot Type of Business:

1. By showing “capital account foreign exchange account order letter” is good enough to process transactions in the pilot banks without providing proof for authenticity of each transaction in advance.

2. The RMB capital obtained through capital accounts’ income or settlement of exchange can be directly used for domestic equity investment.

3. Can complete the basic information of domestic direct investment registration , modification and cancellation at the banks in Fujian.

4. There is no limit to the number of accounts opened for a single foreign debt.

5. The cancellation registration of foreign debt shall be delegated to the banks and the time limit for cancellation of pilot enterprises’ foreign debt will be cancelled.

Pilot Banks: Banks within Fujian province

Limits: Temporarily not specified

Receipts and Records:

The enterprises shall keep relevant documents for two years, start from the date of conducting relevant transactions, for post-supervision. The banks shall keep relevant documents for five years for post-supervision.

Miscellaneous: Temporarily not specified

Beijing Zhongguancun

Relevant Documents: “Notice of Implementation on Facilitating Capital Account Policies in Zhongguancun Science Park” (Jing Hui [2018] No.92)

Release Date: October 30, 2018    

Pilot Scope: Zhongguancun Science Park Zone 1 Area 16

Capital Account Income: 

Foreign capital of foreign-funded enterprises (including funds in the domestic assets realisation account of domestic institution and funds in the domestic reinvestment account), foreign exchange and debt of domestic enterprises and repatriation funds of domestic enterprises listed abroad

Eligible Enterprises:

1. Registered office address is within Zhongguancun Science Park Zone 1 Area 16.

2. Enterprises that have obtained the National High-tech Certificate or the High-tech of Zhongguancun Certificate, and are listed in the catalogue of high-tech enterprises in zhongguancun published by the management committee of Zhongguancun science park.

3. It belongs to non-financial enterprises other than real estate enterprises and government financing platforms. Trade in goods catagorised as band A (if have).

4. No record of violations of foreign exchange rules in the past two years.

Pilot enterprises that have borrowed foreign debt within the scale approved by the foreign exchange administration departments will not be included in the pilot program for facilitating foreign exchange settlement and payment of capital account income.

Pilot Type of Business:

1. When pilot enterprises’ income of capital account is used in payment inside the country, showing “capital account foreign exchange account order letter” is good enough to process transactions in the pilot banks without providing proof for authenticity of each transaction in advance.

2. Non-investment pilot enterprises are allowed to use foreign debt capital to conduct certain equity investment.

3. Settlement of foreign debt capital borrowed legally by pilot enterprises can be used for certain equity investment, and shall be clarified in foreign debt contract.

4. Pilot enterprises’ cancellation registration of foreign debt has been transferred to banks, which will be implemented after completing adjustment of capital account information system.

Pilot Banks: 

Banks in Beijing designated by foreign exchanges

Limits:

Pilot enterprises capital account income amount*macro-prudential assessment coefficient

When the macro-prudential assessment coefficient is lower than 1, pilot enterprises is not eligible for the facilitation of payment and examination in terms of capital account income, and is subject to the current capital account’ settlement of exchange and policies on payment management.

Receipts and Records:

1. Pilot enterprises shall keep “capital account foreign exchange account order letter” and related authenticity/compliance documents for five years for verification conducted by foreign exchange management department and banks. 

2. Banks shall refer to “Catalogue of Zhongguancun High-tech and New Technology Enterprises” when dealing with facilitated settlement and payment of foreign exchange transaction of capital account. Also, banks shall search classification of pilot enterprises’ trade in goods through trade in goods foreign exchange monitor system. Banks shall keep the search results for five years.

3. Banks shall keep the relevant documents for five years in case of inspections.

Miscellaneous: 

Enterprises shall submit following documents to Zhongguancun central branch:

1. Application form (status of borrower and lender, background of borrowing, main points of contact, planned withdraw and settlement of exchange time, plan for usage of capital, letter of commitment for  no violation of rules for past two years, risks prevention measures etc.)

2. National high-tech Certificate or Zhongguancun High-tech Certificate. 

3. Original foreign debt contract and copy of main clauses of the contract, contracts in foreign languages shall attach Chinese translation of main clauses.

4. Chinese-funded enterprises: business registration certificate, financial statement of the previous year or the latest audited one, “Macro-prudential Cross-border Financing Risk-weighted Balance Statement (enterprise version)” etc.

Foreign-funded enterprises: “Approval Certificate for Foreign-invested Enterprises” or “Receipt of Establishment/Modification of Foreign-funded Enterprises”, business registration certificate, written description of cross-boarder financing management model etc., financial statement of the previous year or the latest audited one and “Macro-prudential Cross-border Financing Risk-weighted Balance Statement (enterprise version)” shall be provided if all-round management is involved.

5. Other documents required by the authorities.

- Team Members -

YANG Qi (Angel Young) 

Partner

E-mail：yangqi@zlwd.com

Ms. Yang holds Master of Law degree from Renmin University of China, Bachelor in Engineering from Changsha University of Science and Technology and Diploma in Legal Studies from Hong Kong University.

Ms. Yang worked for many large corporations, such as Shenzhen Credit Guarantee Group Co., Ltd and China Council for The Promotion of International Trade, etc.

Ms. Yang’s practice areas are cross-border investment, private equity investment and financial technology.

WANG Lingru  

Partner  

E-mail：wanglingru@zlwd.com

Ms. Wang graduated from Sichuan University with Master of Law Degree. She holds Certificate of Tax Agents and was qualified as enterprise legal advisor.

Ms. Wang worked as director of legal department at a large state-owned finance enterprise for years. 

Ms. Wang is expertise is in the construction of transaction structure combining tax, finance and law, as well as M&A and cross-border tax analysis etc.

CAI Yun  

Partner  

E-mail：caiyun@zlwd.com

Ms. Cai graduated from Zhongnan University of Economics and Law with bachelor in law and Sun Yat-sen University with master degree in economic law. 

Ms. Cai has previously worked for the People’s Bank of China, China Banking Regulatory Commission, Economic and Trade Bureau, Health Bureau etc.

She has extensive experiences in financial sector and compliance and risk management of financial products. She is also familiar with government operating system.

WANG Shuyun   

Attorney at Law  

E-mail：wangshuyun@zlwd.com

Miss Wang graduated from Zhongnan University of Economics and Law with bachelor in law in 2016. She holds qualifications for practicing law, securities and fund.

Miss Wang is mainly engaged in general corporate legal practice, securities, finance law and civil litigation. 

NING Ning

Paralegal

E-mail：ningning@zlwd.com

Miss Ning graduated from University of Reading with bachelor in law and University of Edinburgh with LLM in International Banking Law and Finance. She also passed Legal Practice Course in England.

Her main practice areas are foreign-related business, M&A and IPO etc.