Home FAQ Corporate Service China Q&A Regarding State Administration of Foreign Exchange Document No. 37 (1)
Q&A Regarding State Administration of Foreign Exchange Document No. 37 (1)
Q: | What does the special purpose company refer to in Document No. 37? |
A: |
Special purpose company refers to an overseas enterprise directly established or indirectly controlled by a domestic resident (including domestic organizations and individual domestic residents) for the purpose of investment and financing, using the assets or interests of a domestic enterprise lawfully held by the resident or the overseas assets or interests lawfully held by the resident. |
Q: | What does the return investment refer to in Document No. 37? |
A: |
Return investment refers to the direct investment activities carried out by domestic residents directly or indirectly through special purpose companies in China, that is, the act of establishing foreign-invested enterprises or projects in China through new establishment, mergers and acquisitions, and obtaining ownership, control, management and other rights and interests. |
Q: | What does the domestic organization refer to in Document No. 37? |
A: |
Domestic organizations refer to enterprises, government-affiliated institutions, corporations, and other economic organizations established in accordance with the law within China. |
Q: | What does the individual domestic resident refer to in Document No. 37? |
A: |
Domestic resident individuals refer to Chinese citizens who hold Chinese resident identity cards, military identity cards and armed police identity cards, as well as overseas individuals who habitually reside in China due to economic interests although they do not have legal identity cards in China. |
Q: | What does control refer to in Document No. 37? |
A: |
Control refers to the acquisition of the operating rights, income rights, or decision-making rights of a special purpose company by domestic residents through acquisition, trust, agency holding, voting rights, repurchase, convertible bonds, and other means. |