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China to Allow Foreign-Founded Partnership Cos
China's State Council will allow foreign companies or individuals to set up partnership companies in China, with effect from March 1, 2010, in order to simplify investment, economic cooperation and technological exchange, according to a notice released December 2 on the government's official website. The regulation permits two or more foreign individuals, legal persons or organizations to establish a partnership company, and the government will encourage companies with advanced technology and management skills to set up partnership companies, the notice said. The regulation, which also applies to companies and individuals from Hong Kong, Macao or Taiwan, will allow founding parties to invest in companies in freely convertible currencies or yuan, according to the notice.
The regulation also said foreign companies or individuals can assign an agent or representative to register partnership companies at the local administrative department for industry and commerce. In a second notice explaining the regulation, the government said previously, joint ventures in China had to register with the national level Ministry of Commerce (MOFCOM).
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