Relevant Provisions on the Evaluation and Approval of the Establishment of Sino-foreign Equity Joint and Cooperative Joint Medical Institutions with Foreign Investment
(A) Main Legal Basis
The Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures and Regulations for the Implementation of the Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures and the Detailed Rules for the Implementation of the Law of People's Republic of China on Sino-Foreign Joint Cooperative Ventures, the Law of the People's Republic of China on Foreign-funded Enterprises and Rules for the Implementation of the Law of the People's Republic of China on Foreign-funded Enterprises, Regulations on the Administration of Medical Institutions and Interim Measures for the Administration of Sino-foreign Equity Joint and Cooperative Medical Institutions.
(B) Examination and Approval Authority
The Sino-foreign Equity Joint and Cooperative Medical Institutions with Foreign Investment shall be approved by the Ministry of Commerce.
Except “Application Requirements” in Item 4, establishment of Sino-foreign equity joint and cooperative joint medical institutions with Foreign Investment shall also meet the following requirements:
1.The establishment and development of Sino-foreign equity joint and cooperative medical institutions shall be consistent with the local health and medical institution planning, and execute the Basic Standards for Medical Institutions stipulated by the Ministry of Health.
2.The Chinese and foreign parties that apply for the establishment of Sino-foreign equity joint and cooperative medical institutions shall be legal persons who can bear civil liability independently. The Chinese and foreign parties in the joint venture and cooperative medical medication shall have direct or indirect experience in medical and health investment and management, and shall also meet one of the following requirements:
(1) Capable of providing internationally advanced managerial experience in medical institutions, management modes and modes of services;
(2) Capable of providing international cutting-edge medical technologies and equipment;
(3) Capable of offsetting or improving the inadequacy of local medical servicecapacity, medical treatment technologies, funding and medical facilities.
3. The Sino-foreign equity joint and cooperative medical institutions which have been established shall satisfy the following conditions:
(1) Shall be independent legal entities;
(2) The total amount of investment shall not be less than 20 million RMB;
(3) The equity ratio or interest of Chinese party engaged in the Sino-foreign equity joint and cooperative medical institutions shall not be less than 30%;
(4) The period of the joint venture or cooperation shall not be longer than 20 years; and
(5) Other conditions stipulated by the Health Administrative Departments above the provincial level.
(D) Application Materials
1. Application form for the establishment and the documents preliminarily examined by the administrative departments of commerce (investment invitation) department at the municipal level (cities at the prefecture level) ;
2. The project proposal and feasibility study report signed by the legal representatives of all parties in the Joint (Cooperative) venture;
3. Joint (Cooperative) venture contracts and articles of association signed by the legal representative or authorized representatives of the joint (cooperative) venture parties;
4. The name list of Chairman of the Joint (Cooperative) venture or Joint Management Committee Director, Vice Chairman or Deputy Director, Director or committee candidates designated by the Joint (Cooperative) venture parties or by cooperative parties through consultation, their resumes, valid IDs (photocopies) and the accreditation of directors from all parties;
5. The certificate for the qualification or notary certificate of identity of foreign investors issued by their local notary organs (investors from Hong Kong, Macao and Taiwan shall provide the certificate for qualification or notary certificate of identity issued by their local notary organs).
6. Documents of investor’s qualification certificate and notary certificate of identity provided by Chinese Embassy or Consulate in investor’s country to the notary public of the country where the foreign investors located (investors in Hong Kong, Macao and Taiwan excluded.)
7.A Power of Attorney for the Service of Legal documents signed by the overseas investor (the authorizer) and the addressee of service of domestic legal documents (the authorized);
8. The qualification and credit certification of foreign investors and legal representative identification certificate (photocopy);
9. Chinese bank credential letter, certificate of registration (photocopy), legal representative certificate (photocopy);
10. The license files on the establishment of the Sino-foreign equity joint and cooperative medical institutions by the Ministry of Health;
11. In case of investing with state-owned assets, China shall provide the appraisal report of state-owned assets and confirmation of state-owned assets administration department;
12. The written notification on pre-approval of the enterprise name;
13. Submission of other materials requested by the Ministry of Commerce.
Chinese source: hunan.gov.cn