Investment-Solicitation Agency Service Regulation of
10 May 2007
In order to facilitate a further opening up; broaden channels of investment-solicitation; enhance effect of investment-solicitation; the Regulation, which takes into account the specific characteristics of Yuzhong District, is formulated for implementation in Yuzhong District.
Chongqing Yuzhong District Opening up Leading Office is responsible for the leadership and guidance of investment-solicitation agency service within the whole District while Yuzhong District Foreign Trade & Economic relations Bureau is responsible for co-ordination and management of investment-solicitation agency service.
Investment-solicitation agency service means a service where a project owner delegates an agent to locate investors from outside of Yuzhong District or an agent comes to a project owner to recommend investors from outside of Yuzhong District.
An Agent means an agency or a natural person who is delegated by a project owner or on its own initiative to recommend investors from outside of Yuzhong District to make investment in Yuzhong District.
Determination of Agency Relation
1) The agency service relation referred to in the Regulation means the agency service relation which is established when a project owner delegates an Agent to locate investors from outside of Yuzhong District or when an agent comes to a project owner to recommend investors from outside of Yuzhong District.
2) Project owner means the various industry department of district government.
3) The existence of agency service relation is an important basis on which the rights and obligations of the Agent are specified, as well as the basis by which an award is paid to the Agent after the success of investment-solicitation.
1) Investment projects to be introduced by an Agent must comply with industry policies of the state, Chongqing municipality and Yuzhong district.
2) Registered capital of investment projects to be introduced by an Agent shall not be less than US$10 million in case of foreign investment; same shall not be less than RMB100 million Yuan in case of domestic investment (investments by Fortune 500 and China Top 500 excepted; business headquarters set up by Chongqing Industrial Top 50 and Chongqing Commercial Top 30 excepted).
3) Investments by national, municipal, district government and input of public debts shall not be brought into the scope of investment-solicitation agency service.
Investment-Solicitation Agency Service Agreement and Payment of Commission
1) The Agent, prior to its start of work, shall fill in the Investment-Solicitation Agency Service Registration Form (Attachment 1) and submit same to the District Foreign Trade & Economic Relations Bureau, together with the Investment-Solicitation Agency Service Agreement signed with the project owner. The District Foreign Trade & Economic Relations Bureau, upon receipt of the documents, shall forward same to the District Opening up Leading Office for approval.
2) The Agent shall apply to the District Foreign Trade & Economic Relations Bureau for payment of commission after completion of approval and registration procedures of the investments, and after capital money is transferred as per the Contract and Memorandum of Association. The application for payment shall be accompanied with following documents:
(1) Project owner’s Confirmation Letter of success of the agency service
(2) The Investment-Solicitation Agency Service Commission Payment Form (Attachment 2)
(3) Copies of Business License and ID of the Agent
(4) Copies of Capital Verification Report
Amount of Commission:
0.5% - 0.8% of registered shall be paid for investment in cash money.
0.3% - 0.6% of the registered capital shall be paid for investment by equipment, which is evaluated by authorized authorities.
Commission shall be paid at the upper limit of the above for introduced business operations set up by Fortune 500, China Top 500, as well as for the business headquarters set up by Chongqing Industrial Top 50 and Chongqing Commercial Top 30 outside of Chongqing.
Terms of Payment
1) The District Foreign Trade & Economic relations Bureau, Finance Bureau, Administration of Industry & Commerce, Taxation Department and the industry administration departments responsible for the project owner shall carry out an evaluation of the progress of the investments, and shall verify the qualification of the Agent, as well as to check the amount of commission to be paid based on the Agency Service Agreement, followed by a submission rendered to the District Opening up Leading Office for examination, and then to be forwarded to District Government for approval.
2) The Agent shall go to department in charge to collect the commission by presentation of the approval documents issued by the District Government; commission shall be paid in China Yuan (investment in foreign currency to be converted at the exchange rate of the pay day).
3) Terms of Payment: commission is to be paid in 2 payments:
l 40% to be paid upon the transfer of registered capital as per the Contract and the Memorandum of Association.
l 60% to be paid after the invested project having generated taxes within 3 years up to the awarding amount , having completed all project procedures and having initiated a startup.
The Agent shall pay tax for commission so received according to law.
This Regulation shall not apply to an Agent who already gets awarded under the Incentives for an Organization or Natural Person Who Introduces Investments to Yuzhong District.
This Regulation is in effect from the date of issue, and shall be interpreted and construed by Yuzhong District Opening up Leading Office.