(iii) Procedures to Setup a company

1. Special instruction on application of foreign investment company

( 1 ) Examination and approval authorities for contract and bylaws:
Chongqing Foreign Economy and Trade Relations Commission, Foreign Economy and Trade Relations Commission (Bureau or Office) of each district, county (city) of Chongqing
Chongqing Economic and Technological Development Zone Administrative Commission
Chongqing Hi-tech Industry Development Zone Administrative Commission
Chongqing New North Zone Administrative Commission

(2) Project authorization authorities:
I n d u s t r i a l p r o j e c t s : C h o n g qi n g Economic Commission
Non-industrial projects: Chongqing Municipal Development a n d R e f o r m Commission
Commercial projects: Chongqing Commerce Commission
If it is invested as national assets, a project feasibility study report should b e compiled f o r approval by related departments.
For encouraged or allowed project with total investment below 30 million USD, it should be examined and approved by local Foreign Economy and Trade Commission (Bureau or Office) of the district or county(city) where the project is located.

For encouraged or allowed project with total investment below 30 million USD within Chongqing Economic and T e c h n o l o g i c a l D e v e l o p m e n t Z o n e, Chongqing Hi-tech Industry Development Zone, or Chongqing New North Zone, it should be examined and approved by local development zone administrative commission.

For encouraged or allowed company with total investment below 100 million USD, and restricted company with total investment below 50 million USD, its contract and bylaws should be examined and approved by Chongqing Foreign Trade and Economic Relations Commission as per national stipulations. For encouraged or allowed company with total investment over 100 million USD, and restricted company with total investment over 50 million USD, it shall be reported to Ministry of Commerce for examination and approval by Chongqing Foreign Trade and Economic Relations Commission.

2. Procedures for Applying Foreign Invested Company (as its representative organization in Chongqing)
(1) Sino-foreign joint venture (hereinafter referred to as�� joint venture��)



(2) Chinese and foreign cooperative joint venture (hereinafter referred to as�� cooperative



(3) Foreign-invested venture



(4) Permanent representative organization setup in Chongqing by foreign company



3. The quick way to apply for foreign invested enterprise in Chongqing

To simplify the procedures, increase efficiency, and further improve investment environment, Chongqing government adopts the ��one stop�� service to foreign investors, which is interpreted as ��one window to outside, integrated service, one spot to collect charges, and one center for complaints��.

Office of ��One-stop�� service is at 6th floor of Chongqing Foreign Trade Building. The office hour is on Tuesday, morning to evening. It is led by Chongqing Foreign Trade and economic Relations Commission under authorization of municipal government. Members from related departments of land administration, urban construction, planning, taxation, industry and commerce, customs, electric power, fire fighting, environmental protection, inspection, quarantine, insurance, labor and other departments will work here to manage and deal with issues related to investment consultation before and after establishment of foreign-invested enterprises.

During non-office hours of ��One-stop�� service, Chongqing Foreign Investment Company Administrative Service Center will provide services of consultation, reception, communication, and so on. (Refer to Section 4 �C��Related Organization�� for contact)

4. Employment stipulations

Refer to Labor Law of The People's Republic Of China, The Trade Union Law of the People's Republic of China, Stipulations to Protect Employees' Rights of Chongqing, Temporary Method for Management of Labor Contract of Chongqing, etc.

5. Others

(1) If foreign employees of foreign investment company need permanent stay in Chongqing, a procedure for permanent stay can be dealt with.
(2) Foreign investors are encouraged to invest by means of sole investment, joint investment, cooperation, BOT, TOT, purchase, merge, rent, and other international investment methods. BOT and TOT projects invested by foreign investors can enjoy preferential policies for encouragement category of foreign investment.
(3) Unless it is specially defined by national stipulations, investment proportion and operation duration of infrastructure facilities, supporting industries, and hi-tech projects invested by foreign investors in Chongqing will not be restricted. Operation duration for foreign invested commercial project can be extended to 40 years, and registration capital can be reduced to 30 million yuan RMB.
(4) If foreign-invested company and domestic company cooperate or invest again to establish another entity company, and foreign investment proportion reaches 25%, it can enjoy the above preferential treatment of foreign-invested company.
(5) If foreign investor invest by means of hi-tech, proportion of the evaluated total price can exceed 20% of registered capital of the company.
Related departments and contacts:
Chongqing Foreign Trade and Economic Relations Commission: 86-23-89018011

(iv) Residence Environment
1. Stipulations for Entry-Exit
Refer to Administrative Law for Foreigner Entering and Leaving China, Detailed Stipulations for Implementation of Administrative Law for Foreigner Entry exit of China, Punishment for Violation of Administrative Laws and Regulations of Entry-exit Administration.

2. Work and residence permission

(1) Procedures for foreigner to apply permanent residence in Chongqing



(2) Conditions for foreigner to apply for permanent residence in the city As per administrative method for approval of permanent residence of foreigner in China, every healthy foreigner without criminal record that obeys laws of China, he can apply for permanent residence qualification at department of entry-exit administration of municipal public security bureau (NO.48-1, Wusi Road, Yuzhong District, Chongqing) as long as he accords with one of the following conditions:
(a)Foreigners who has direct invested in the city with stable investment situation in three consecutive years, and good taxation record;
(b) Foreigners who take the office of deputy general manager, deputy factory director or above, or has a deputy senior title of deputy professor, deputy researcher, and others or above, has hold the office for four year, and accumulated residence years with good taxation records are no less than three within the four years ;
(c) Foreigners who has made great or outstanding contribution to China and who is especially needed by the country;
(d) The spouse and unmarried children under 18 of the above persons;
(e) Chinese citizen or spouse of a foreigner with permanent residence qualification in China, whose marriage has been for 5 years, who has resided in China for over 5 consecutive years, stayed in China for no less than nine months in China each year, and is with stable living provisions and residence;
(f) Unmarried children under 18 years who go to their parents (including unmarried children under 18 years as biological children, step children, and adopted children whose parent-childhood is admitted by China laws, and who are under curatorship of the parents);
(g) Foreigners who has no lineal relatives abroad, goes to the lineal relative in the country, is over 60 years old, has resided in China for 5 consecutive years, stayed in China for no less than nine months in China each year, and is with stable living provisions and residence.

3. Living environment
(1)International School Chongiqng Yaozhong International School is a standardized international school adopting normal teaching materials of North America,with its teaching mode and teaching system being identical with that of North America. Other international school available for foreign children include the Foreign Language School affiliated to Sichuan International Study University,the international divisions of Chongqing No.1 Middle School, Renmin Primary School, Bashu Primary School and Longhu Kindergarten.
(2)International Hosptial
There are 10 hospitals in Chongqing which serve for foreign residents, including the Southwest Hospital, the Affiliated Hospital of Chongqing University of Medical Science, Chongqing First-Aid Center,where the full-course accompanying service for foreign residents is available. The 120-hotline service in English is served for foreign residents on medical service.The International Hospital within the New North Zone is under construction, phase 1 of which is expected to be completed and brought to operation in September 2007.
(3)Golf Court
Chongqing has 5 golf courses in total,including Baifu Riverview,Poly,Hong ding,Shangbang and the International Golf Course.

4. Education and Medical Service
(1) Education
There are 358,000 students in all in the Universities of Chongqing, 1,735,200 students in the middle schools of Chongqing, and 2,609,800 pupils in primary Schools.
(2) Situations of medical service



5. Driver's License

As international and foreign driver's license cannot be directly used in the country, holder of the two licenses who want them changed into a domestic license must complete the formalities at vehicle administrative department to change the license. Detailed procedure is as follows:



(v) Reference Prices of Basic Elements

Reference table for price of essential elements