(Adopted by the Second Session of the Fifth National People's Congress on July 1, 1979
Revised in the Third Session of the Seventh National People's Congress on April 4, 1990
Revised for the second time in accordance with "Resolution on Revision of the Law of the People's Republic of China on Chinese-Foreign Equity Joint Venture" of the Fourth Session of the Ninth National People's Congress on March 15, 2001)
Article 1 With a view to expanding international economic co-operation and technical exchange, the People's Republic of China permits foreign companies, enterprises, other economic organizations or individuals (hereafter referred to as "foreign joint venturers")to joint with Chinese companies, enterprise or other economic organizations (hereafter referred to as "Chinese joint ventures") in establishing joint ventures in the People's Republic of China in accordance with the principle of equality and mutual benefit and subject to approval by the Chinese Government.
Article 2 The Chinese Government protects, in accordance with the law, the investment of foreign joint ventures, the profits due to them and their other lawful rights and interest in a joint venture, pursuant to the agreement, contract and articles of association approved by the Chinese Government.
Joint ventures shall follow the provisions of the laws and regulations of the People's Republic of China in all their activities.
The state does not practise nationalization and expropriation of a joint venture; under special circumstances, the state, in accordance with the needs of social public interest, expropriates a joint venture pursuant to legal procedures and offers corresponding compensations.
Article 3 The joint venture agreement, contract and articles of association signed by the parties to the venture shall be submitted to the competent authorities of foreign economic relations and trade (hereafter referred to as approval authorities), and the approval authorities shall, within three months, decide whether to approve or disapprove them. After approval, the joint venture shall register with the state competent authorities of administration for industry and commerce to obtain a licence to do business and start operations.
Article 4 A joint venture shall take the form of a limited liability company.
The proportion of the investment contributed by the foreign joint venturer(s) shall generally not be less than 25% of the reistered capital of a joint venture.
The parties to the venture shall share the profits, risks and losses in proportion to their respective contributions to the registered capital.
No assignment of the registered capital of a joint venturer shall be made without the consent of the other parties to the venture.
Article 5 Each party to a joint venture may make its investment in cash, in kind or in industrial property rights, etc.
The technology and the equipment that serve as a foreign joint venturer's investment must be advanced technology and equipment that actually suit our country's needs. If the foreign joint venturer causes losses by deception through the intentional use of backward technology and equipment, it shall pay compensation for the losses.
The investment of a Chinese joint venturer may include the right to the use of a site provided for the joint venture during the period of its operation. If the right to the use of the site does not constitute a part of a Chinese joint venturer's investment, the joint venture shall pay the Chinese Government a fee for its use.
The various investments referred to above shall be specified in the joint venture contract and articles of association, and the value of each (excluding that of the site) shall be jointly assessed by the parties to the venture.
Article 6 A joint venture shall have a board of directors, which shall have its size and composition stipulated in the contract and the articles of association after consultation between the parties to the venture, and the directors shall be appointed and replaced by the parties to the venture. The Chairman and the vice-chairman are determined by the parties to the venture or elected by the board of directors. Either party of the Chinese-foreign joint venturers may be the chairman and the other shall assume the office of vice-chairman. In handling major problems, the board of directors shall reach a decision through consultation by the parties to the venture, in accordance with the principle of equality and mutual benefit.
The board of directors is empowered, pursuant to the provisions of the articles of association of the joint venture, to discuss and decide all major problems of the venture: expansion programmes, proposals for production and operating activities, the budget for revenues and expenditures, distribution of profits, plans concerning manpower and pay scales, the termination of business and the appointment or employment of the president, the vice-president(s), the chief engineer, the treasurer and the auditors, as well as their powers and terms of employment, etc.
The offices of president and vice-president(s) (or factory manager and deputy manager(s) shall be assumed by the respective parties to the venture.
Contracts shall be entered into in accordance with the law to prescribe the recruitment, dismissal, remuneration, welfare, labor protection, labor insurance, etc..
Article 7 The staff employees of the joint venture may establish trade unions in accordance with the law, carry out the activities of the trade union and defend the lawful rights and interests of the employees.
Joint ventures shall provide necessary conditions for the activities of the trade unions thereof.
Article 8 After payment, pursuant to the provisions of the tax laws of the People's Republic of China, of the joint venture income tax on the gross profit earned by the joint venture and after deduction from the gross profit of a reserve fund, a bonus and welfare fund for staff and workers, and a venture expansion fund, as provided in the articles of association of the joint venture, the net profit shall be distributed to the parties to the joint venture in proportion to their respective contributions to the registered capital.
A joint venture may enjoy the preferential treatment of reduction of or exemption from tax pursuant to relevant state taxation laws or administrative decrees.
A foreign joint venturer that reinvests in China its share of the net profit may apply for refund of a part of the income taxes already paid.
Article 9 A joint venture shall, with its business licence, open a foreign exchange account at the banks or other financial organizations approved by the state foreign exchange control administrative organs to handle foreign exchange business.
The pertinent foreign exchange transactions of a joint venture shall be conducted in accordance with the regulations on foreign exchange control of the People's Republic of China.
In its operating activities a joint venture may directly raise funds from foreign banks.
All insurances of joint ventures shall be procured at the insurance companies within the territory of the People's Republic of China.
Article 10 The Joint venture may purchase the materials such as raw materials, fuels, etc. as needed within the approved scope of business either on the domestic or international market according to the principle of fairness and reasonableness.
A joint venture is encouraged to market its products outside China. Export products may be distributed to foreign markets through the joint venture directly or through associated agencies, and they may also be distributed through China's foreign trade agencies. Products of the joint venture may also be distributed in the Chinese market.
Whenever necessary, a joint venture may establish branches outside China.
Article 11 The net profit that a foreign joint venturer receives after fulfilling its obligations under the laws and the agreement and the contract, the funds it receives at the time of the joint venture's scheduled expiration or early termination, and its other funds may be remitted abroad in accordance with the foreign exchange regulations and in the currency specified in the joint venture contract.
A foreign joint venturer shall be encouraged to deposit in the Bank of China foreign exchange that it is entitled to remit abroad.
Article 12 The wages, salaries and other legitimate income earned by the foreign staff and workers of a joint venture, after payment of the individual income tax under the tax laws of the People's Republic of China, may be remitted abroad in accordance with the foreign exchange regulations.
Article 13 The contract period of a joint venture may be decided differently according to its particular line of business and circumstance. The joint ventures of some trades should decided the contract period; and other may or may not decide the contract period. A joint venture that has set a contract period should, if the parties to the joint venture agree to extend the contract period, apply to the approval authorities six months ahead of the expiration of the contract period. The latter should make the decision of approval or disapproval within one month as of the date of application.
Article 14 In case of heavy losses, failure of a party to fulfil the obligations prescribed by the contract and the articles of association, force majeure, etc, the contract may be terminated through consultation and agreement by the parties to the venture, subject to approval by the approval authorities and to registration with the state competent authorities of administration for industry and commerce. In cases of losses caused by a breach of contract, the financial responsibility shall be borne by the party that has violated the contract.
Article 15 Disputes arising between the parties to a joint venture that the board of directors cannot settle through consultation may be settled through mediation or arbitration by a Chinese arbitration agency or through arbitration by another arbitration agency agreed upon by the parties to the venture.
Where no arbitration clauses have been included in the joint venture contract or no written arbitration agreement have been reached after a dispute arises, any party may bring a suit with the people's court.
Article 16 This Law shall come into force on the date of its promulgation.
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杨春宝一级律师简介
杨春宝一级律师,大成上海高级合伙人、资本市场部主任、国资基金研究中心主任,大成中国区私募基金专业带头人、科技与文化法律研究中心联合牵头人。执业30余年,长期从事私募基金、投融资、并购重组法律服务,尤其对对赌研究颇深且具有非常丰富的实战经验,并专注于金融机构股权投资业务。2004年起多次入选The Legal 500"私募基金"和"公司与商业"等境内外各类律师榜单,代理的中国法院首例适用外国法律审理外国公司的董事损害小股东权益纠纷案入选上海高院发布的《上海法院域外法查明典型案例》和威科先行"要案头条"。入选上海涉外法律人才库、上海市司法局鼎新法治人才库、上海国有企业改制法律顾问团,具有上市公司独立董事任职资格,系多家知名高校的兼职教授或兼职研究生导师及上海市商务委跨国经营人才培训班讲师。出版《私募股权投资基金风险防控操作实务》等16本投融资法律专著。了解更多常见法律问题
中外合资经营企业的组织形式和出资比例有哪些核心要求?
根据我国法律,中外合资经营企业必须采用有限责任公司的组织形式,即合资企业以其全部资产对外承担责任,合营各方以其认缴的出资额为限对企业负责。外国合营者的出资比例一般不得低于注册资本的25%,这一比例要求既保障了外资权益,也防止合资流于形式。各方按照注册资本出资比例分享利润、分担风险和亏损,转让注册资本必须经其他合营方同意,以维护合资关系的稳定性。n在出资方式上,合营各方的出资可以是现金、实物、工业产权等。作为外国合营者出资的技术和设备必须确实适合我国需要的先进技术和设备,如果外国合营者故意以落后技术设备欺骗并造成损失,则需承担赔偿责任。中国合营者可以场地使用权作为出资,若未作为出资,则合资企业须向中国政府缴纳场地使用费。各类出资的价值(场地除外)由合营各方协商确定并记载于合同和章程。n从实务角度看,中外双方在洽谈合资项目时,应重点审查出资资产的作价是否公允,特别是技术出资的先进性证明和权属状态,避免因技术瑕疵引发纠纷。章程中应明确出资缴纳期限和违约责任。若外方计划转让股权,必须取得中方书面同意,并依法办理变更登记,否则转让行为可能不产生法律效力。
中外合资经营企业的董事会如何组成和决策?
董事会是合资企业的最高权力机构,其人数和组成由合营各方在合同中协商确定,董事由各方委派和撤换。法律特别规定,董事长和副董事长由合营各方协商确定或由董事会选举产生,中外合营者一方担任董事长的,另一方应当担任副董事长,这一安排体现了平等互利原则。董事会处理重大问题时,应当根据平等互利原则由合营各方协商一致作出决定。n董事会的职权范围包括企业发展规划、生产经营活动方案、收支预算、利润分配、劳动工资计划、停业以及总经理、副总经理、总工程师、总会计师、审计师的任命或聘请及其职权和待遇等。法律明确列举的这些事项均属重大事项,需要董事会依据章程开会讨论决定。总经理和副总经理(或厂长、副厂长)由合营各方分别担任。n实务中,投资者应在合资合同和章程中详细规定董事会的议事规则,包括会议召集程序、表决机制和僵局处理办法。由于法律规定重大问题需协商一致,建议对哪些事项属于重大问题作出明确列举,避免决策效率低下。同时,注意董事长和副董事长分别由中外方担任的结构要求,在委派董事时应确保双方席位均衡,以保障合资企业的正常运营和双方权益。
外国合营者的投资保护和利润汇出有何法律保障?
我国法律为外国合营者提供了坚实的投资保护。中国政府依法保护外国合营者在合资企业中的投资、应分得的利润及其他合法权益。国家不会对合资企业实行国有化和征收;仅在特殊情况下,基于社会公共利益的需要,可以依照法律程序对合资企业实行征收,并给予相应的补偿。这一承诺为外资进入中国提供了稳定的制度预期。n在利润汇出方面,合资企业依法缴纳所得税后,从毛利润中提取储备基金、职工奖励及福利基金、企业发展基金后,净利润按照出资比例分配。外国合营者分得的净利润在履行法律和合同义务后可以汇往境外。法律还鼓励外国合营者将分得的净利润在中国再投资,并允许其申请退还已缴纳的部分所得税。合资企业持营业执照在经批准的银行开立外汇账户,遵守外汇管理规定进行外汇交易,也可以直接向外国银行筹措资金。n实务中,外国投资者应重视保留完税证明和利润分配决议文件,以备汇出时审查。申请再投资退税时,需注意程序要求和时限,并保留再投资证明。若遇到征收情形,应主张依法补偿标准,通过协商或法律途径维护权益。同时,合资企业的各项保险应在我国境内保险公司投保,以防范风险。
以上内容仅供参考,不构成法律意见。如需专业法律服务,请联系杨春宝一级律师:chambers.yang@dentons.cn




