China revises regulation on setting up foreign-owned shipping businesses

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Foreign shipping companies will find it easier to establish wholly-owned subsidiaries in China thanks to a revised regulation due to take effect on Jan. 1, 2019.

The newly revised decision, endorsed by the ministries of Commerce and Transport, stipulates that the two ministries will be responsible for managing rather than approving the set-up of fully foreign-owned shipping companies in China.

Applicants can go through relevant procedures with business supervisors as required by the Law on Foreign-funded Enterprises and other related administrative rules, said the management rules on the set-up of wholly foreign-owned shipping companies.

The process was previously named "the management rules on the approval of wholly foreign-owned shipping companies."

To qualify for engaging in business operations, foreign companies must follow corporate registry rules to get business licenses from the industrial and commercial administrative departments and obtain a business permit from the departments in charge of transportation.

The previous stipulation requiring the proportion of Chinese employees staying above 85 percent at wholly foreign-owned shipping companies has been removed.

Source(s): Xinhua News Agency