Home   FAQ  Corporate Service  China  Q&A Regarding State Administration of Foreign Exchange Document No. 37 (5) 

FAQ

SHARE

Corporate Service - China

Question

Q&A Regarding State Administration of Foreign Exchange Document No. 37 (5)

Answer
Q: Can domestic residents lend money to overseas special purpose companies?
A: Domestic enterprises directly or indirectly controlled by domestic residents may lend to their registered special purpose companies in accordance with current regulations based on real and reasonable needs.

Q: What should domestic residents pay attention to when investing to establish overseas special purpose companies?
A: Domestic residents can purchase foreign exchange and remit funds for the establishment of special purpose companies, share repurchases, delisting, etc. based on real and reasonable needs.

Q: How to handle cross-border income and expenditure between domestic residents and overseas special purpose companies?
A: The cross-border income and expenditure between domestic residents and overseas special purpose companies shall be handled international balance of payments statistics declaration in accordance with current regulations.

Q: What are the consequences for domestic residents who fail to handle relevant foreign exchange registration according to regulations?
A: Domestic residents who fail to handle relevant foreign exchange registration according to regulations, fail to truthfully disclose the information of the actual controller of the return investment enterprise or make false promises will be punished by the State Administration of Foreign Exchange in accordance with Article 48 (5) of the Foreign Exchange Management Regulations of the People's Republic of China.

Q: What are the consequences of domestic residents and special purpose companies failing to handle international balance of payments statistics declaration in accordance with regulations?
A: If domestic residents and special purpose companies fail to handle international balance of payments statistical declaration according to regulations, the State Administration of Foreign Exchange will impose penalties in accordance with Article 48 (1) of the Foreign Exchange Management Regulations of the People's Republic of China.

Language

繁體中文

简体中文

日本語

close