Article 1 For the purpose of regulating the establishment of partnership enterprise in China by foreign enterprises or individuals, facilitating foreign enterprises or individuals to invest in China in the form of partnership, and expanding foreign economic cooperation and technical exchanges, the Measures herein is formulated in accordance with the Partnership Enterprise Law of the People's Republic of China (hereinafter referred to as the Partnership Enterprise Law).

Article 2 The establishment of partnership enterprise in China by foreign enterprises or individuals described the Measures herein refers to the establishment of partnership enterprises by two or more foreign enterprises or individuals; or by foreign enterprises or individuals together with Chinese natural persons, legal persons and other organizations in China.

Article 3 Foreign enterprises or individuals establishing partnership enterprise in China should abide by the Partnership Enterprise Law, other relevant laws, administrative regulations and rules and related industrial policies for foreign investment.

For foreign enterprises or individuals establishing partnership enterprises in China, their legitimate rights and interests shall be protected by law.

China shall encourage foreign enterprises or individuals with advanced technologies and management experience to establish partnerships in China to boost the development of modern service industry and other industries.

Article 4 The currency invested by foreign enterprises or individuals should be freely convertible foreign currencies or legally obtained Renminbi.

Article 5 For foreign enterprises or individuals establishing partnership enterprise in China, a designated representative or agent jointly entrusted by all copartners should apply for the registration to the local industrial and commercial administration authorized by the administrative department for industry and commerce under the State Council (hereinafter referred to as the enterprise registration organ).

The documents prescribed in the Measures of the People's Republic of China for the Registration of Partnership Enterprises, and an explanation stating that the foreign investment according with industrial policies on foreign investment should be submitted to the enterprise registration organ while applying for the registration.

For registration approved by the enterprise registration organ, relevant registration information should be simultaneously reported to commercial administration department at the same level.

Article 6 In the event of any changes to the registration for partnership enterprises set up in China by foreign enterprises or individuals (hereinafter referred to as foreign investment partnership enterprise), an application for changing the registration shall be submitted to the enterprise registration organ according to law.

Article 7 In the event that a foreign ventured partnership enterprise is dissolved, liquidation should be done in accordance with the Partnership Enterprise Law, and the liquidator should file the cancellation with the enterprise registration organ according to law within 15 days upon the end of liquidation.

Article 8 In the event foreign copartners withdraw from a foreign ventured partnership enterprise while the enterprise continues to operate, application for alteration should be filed with the enterprise registration organ according to law.

Article 9 In the event a foreign ventured partnership enterprise alters or cancels registration, the enterprise registration organ should simultaneously report the information involved in altering or canceling registration to competent commerce department at the same level.

Article 10 Other registration administrative issues not specified in the Measures herein should be subject to the Measures of the People's Republic of China for the Registration of Partnership Enterprises and relevant provisions of the government.

Article 11 The establishment of partnership enterprises in China by foreign enterprises or individuals involves such issues as financial accounting, taxation, foreign exchange, customs and personnel entry and exit. These issues should be handled according to relevant laws, administrative regulations and relevant provisions of China.

Article 12 In the event foreign enterprises or individuals join the partnership enterprises set in China by Chinese natural persons, legal persons and other organizations, they should comply with relevant provisions in the Measures herein and apply for registration alteration with the enterprise registration organ.

Article 13 In the event the establishment of partnership enterprises in China by foreign enterprises or individuals involves any investment project that shall be checked and approved by the government, the approval formalities for investment project shall be handled according to relevant regulations of China.

Article 14 In the event China has other provisions for the establishment of partnership enterprises in China by foreign enterprises or individuals whose primary business is investment, these other provisions shall be complied with.

Article 15 The establishment of partnership enterprises by the enterprises or individuals from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan should be subject to the Measures herein.

Article 16 The Measures herein shall come into force on March 1, 2010.

Source: www.fdi.gov.cn