New Rules Beef up Holding Companies: But Who is Buying?
February 29, 2004 | BY
clpstaff &clp articlesThe Ministry of Commerce recently issued new rules on foreign-invested holding companies. The business scope of holding companies has been widened, although some important areas of the new provisions need clarification.
By Peter Corne Linklaters, Shanghai
Proposals for reform that aim to make the holding company vehicle more attractive for foreign investors have been floating about for some time. These proposals have largely come on the back of hard lobbying by multinationals to convince the Ministry of Commerce (MOC) of the necessity of new legislation in this regard.
To take account of these calls, the MOC promulgated an amended version of its administrative rules governing holding companies on February 12 2004 (Establishment of Companies with an Investment Nature by Foreign Investors Provisions (Revised))(关于外商投资举办投资性公司的规定)(the Provisions), which have made changes to the previous version of the legislation issued in 2003.
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