Procedures for Equity Joint Ventures
and Contractual Joint Ventures

( 1 ) Signing the Letter of Intent

   Through preliminary negotiation, a Letter of Intent for a cooperative project is signed by the foreign and Chinese investors.

( 2 ) Approving the Proposal Report

   The Chinese investor is responsible for drafting the Proposal Report which is to be submitted to the government department with the following documents:

1. Application submitted by the Chinese responsible authority for the approval of Project Proposal Report
2. The Letter of Intent
3. The Project Proposal Report
4. Industrial Permit issued by the responsible authority for the products(if necessary)
5. Copies of the Business License, the Certificate of Registration and the Certificate of Commercial Registration, etc. issued by the appropriate departments of the countries and regions where the investors reside.
6. The Credit Standing of foreign investors

( 3 ) Name Registration

    The foreign-funded enterprises should apply to Weihai Administration Bureau of Industry and Commerce for name registration.

( 4 ) Working out and Submitting the Feasibility Study Report

    The investors may conduct technological and economic feasibility studies, and then work out the Feasibility Study Report which should be signed by investors and submitted by the Chinese investor to the organization concerned for approval.

    The following materials should be submitted:

1. Credentials of the legal representatives of all investors (if a legal representative cannot sign the feasibility study report himself, he can legally authorize someone else to do so)
2. The certificates issued by departments of environmental protection..

( 5 ) Signing Contract and Articles of Association

   After the investors receive the approval document of the feasibility study report, they can proceed to sign the contract and articles of association and submit them to the foreign trade & economic cooperation authority for approval.

( 6 ) Applying for the Certificate of Approval

   The Chinese investor is responsible for submitting formal application to the foreign economic and trade administration for approval. Once the application is approved, the certificate of approval should be issued.

   The following official documents should be submitted:

1. The application for setting up the enterprise
2. The feasibility study report and the approval document
3. The agreement, contract and articles of association signed by each investor
4. The name list of chairman , deputy chairman and member of the board or the name list of director, deputy director and member of the coalition organization and the Certificate of Appointment
5. The Business License or the Certificate of Registration (copy)
6. The certification of the legal representatives (or the authorized certificate by the legal representatives)
7. The certification of sources of capital
8. The notice of preliminary verification for the enterprise name
9. The permit signed by the local departments of environmental protection

( 7 ) Registration and Opening Account

    The enterprise should go to the following departments for registration and opening account in the allotted time from the day of approval.

1. To the Administrative Department of Industry and Commerce to register and get Business License, and the enterprise comes into being .
2. To the state tax authority and local tax authority for registration
3. To the local financial organization to open a foreign exchange account (if the enterprise needs to open an account in another financial organization, approval of the local Foreign Exchange Administration Department is needed).
4. To the Customs Office for registration