A certificate of approval is issued by the local Ministry of Commerce office whenever a business entity is qualified as receiving foreign investment, which also qualifies the entity as meeting the requirements for protection under foreign investment law. Moreover, the certificate of approval serves as verification that the business entity meets all legal requirements for qualification from the perspective of the government agency, thereby assuring foreign investors that their entity is in good legal standing in China. Section 6 of the Chinese Foreign Investment Act provides that a foreign owned business entity must carry on its business in compliance with Chinese law. Thus, issuing the certificate of approval implies that the business entity has been found to meet those requirements and is carrying on its business in China lawfully.

Further Reading

See our comprehensive resources on China’s Foreign Investment Law. and an overview of FDI regulation in our Foreign Investment Law FAQ.

Relevant Laws

Foreign Investment Act of China (& Administrative Regulations)
Investment Access Exceptions List
Rules for Forming Investment Companies

Translation Guide

See:外商投资企业批准证书