|Yiwu Pioneers Foreign Registration Credit System|
“Now it’s really convenient to set up a new company. After applying online, you can show your passport at the window and fill in the letter of commitment without submitting a translation of your passport!” Abdulrahman, a Yemeni businessman, has recently obtained the business license of his new company at the Foreign Direct Investment window of the Yiwu Administration of Market Supervision and Regulation (AMSR). This was the first case of a Yiwu-based enterprise benefitting from the reform of the foreign capital registration credit commitment system.
“In the past, registering FDI required the submission of translations of documents written in foreign languages, a fee, and a back-and-forth between the translation agency and the registration authority.” Abdulrahman has been in business with partners in Yiwu for nearly a decade, and in pursuit of further development, he is going to set up a new company.
“The foreign investment registration credit commitment system is Yiwu’s avant-guard reform initiative, aimed at further promoting the facilitation of foreign capital registration.” Ding Xiangnan, head of the FDI Section of the Yiwu AMSR said that the foreign capital registration credit commitment system applies to all foreign capital market subjects that need to submit foreign documents for administrative licensing and filing.
Foreign investors (legally identified as natural persons) who have a clean and good record can directly go to the relevant office, present their passport, and sign the registration form. The person only needs to fill in the “Foreign Direct Investment Registration Information Declaration Commitment” and be exempted from submitting a passport translation. For other documents required, the translation of relevant foreign language files can be exempted upon declaration by the applicant that the materials submitted are true, legal, and valid.
Ding said that according to the Foreign Direct Investment Enterprise Registration Specification, the need is clearly stipulated for notarization and certification of foreign language documents. Once the applicant submits the registration, the Yiwu AMSR will directly have a qualified translation agency translate the documents, and the fees are paid by the AMSR itself. According to the 2019 forecast by the Foreign Direct Investment Registration Office, the reform will reduce the applicants’ expenses by about 200,000 RMB a year. At the same time, the AMSR will also strengthen verification over the applicants’ commitments.
According to the AMSR, as of the end of August 2020, 8,133 foreign-funded market entities are registered in Yiwu, including 3,745 foreign-funded companies. (By Wang Ting, translated by Marco Lovisetto, edited by Mariam Ayad)