Municipal-level Licensing Authority Empowered to Approve Foreign-invested Commercial Enterprises

Recently, the provincial government enacted an official document, delegating its power to approve the items requiring administrative approval related with foreign investment in commercial fields to municipal-level licensing authority. The approval procedures will be carried out in accordance with Measures on the Administration of Foreign Investment in Commercial Fields.

Municipal-level Foreign Trade & Economic Cooperation Bureau is entitled to approve matters of establishment and alteration of foreign-invested commercial enterprises falling within the encouraged foreign investment industries and with a total investment equal to $ 100 million or below, except those whose single shop covers an area of over 5,000 m² or involved in non-store retailing by means of TV, telephone, mail, internet, vending machines, and so on. The approval of matters of alteration of foreign-invested enterprises, whose establishment were approved before by the provincial Department of Commerce, will also be dealt with by municipal-level Foreign Trade & Economic Cooperation Bureau, except those falling within the encouraged foreign investment industries and whose newly increased total investment amounts to $100 million or above, or those falling within the restricted foreign investment industries as stipulated in Catalogue for the Guidance of Foreign-Invested Industries. The alteration of foreign-invested non-commercial enterprises incurred by adding the business scope of distribution operation will as well be handled referring to the extent of power delegated. Meanwhile, to foreign-invested enterprises engaged in the business of distribution, the names of the products distributed and the specific methods of distribution should be clearly stated in their scope of business.

The delegation of power to approve items related with foreign investment in commercial fields will not only greatly simplify the approval procedures and shorten the time needed for handling approvals, but will improve the efficiency of the licensing authority and create a good environment for foreign investment as well.