Starting April 1, 2006, all foreign companies wishing to establish WFOEs or JVs in Shanghai must have their Business License or Certificate of Incorporation notarized and authenticated by the relevant Chinese embassy.
Added Administrative Hurdles at the Shanghai SAIC.
As of April 1, 2006, Shanghai's State Administration of Industry and Commerce (SAIC) requires all foreign companies wishing to set up a WFOE or joint venture to notarize and authenticate its offshore business license and/or certificate of incorporation. To our knowledge, SAIC has not promulgated any new rules or regulations in connection with this authentication requirement, but we have been told that WFOE or joint venture application materials will not be processed in Shanghai without having been properly authenticated. We understand that this practice of authenticating foreign companies' business licenses and/or certificate of incorporation may become standard practice in every SAIC jurisdiction in China in due course.
