Reporting Obligations for Chinese ODI Investors
The Chinese overseas direct investment (ODI) investors are required to report their overseas investments data to the competent administration authorities in accordance with the laws and regulations when they have completed the filing or approving procedures for overseas direct investment. The competent administration authorities include the relevant commerce bureau, development and reform commission, foreign exchange administration bureau.
The main reporting obligations to the competent commerce bureau include:
(1) Reporting of the Registration Status of the Overseas Enterprise
The responsible person of the overseas enterprise shall, within 30 days upon completion of its registration procedures abroad, report to and register with the business office of the local Chinese embassy or consulate with the registration form of overseas Chinese-funded enterprise (institution) and other relevant materials. The domestic investor of the overseas enterprise shall return the receipt of the registration form to the competent commerce bureau in time.
(2) Reporting of Emergency
The domestic investor of the overseas enterprise shall report to the competent authority within 24 hours when an emergency or major adverse event occurs.
(3) Monthly Reporting of Direct Investment
The domestic investor shall submit and report its overseas direct investment data before the 10th day of the next month when it has remitted out the investment funds
(4) Semi-annual Reporting
The domestic investor shall submit and report the status of the compliance construction, investment obstacles, operation of the overseas enterprise, and so on every six months.
(5) Annual Reporting
The domestic investor shall also compete an annual reporting of the statistics of the overseas direct investment in the previous year within the time limit released by the competent commerce bureau (usually before June 30 each year).
Failure to comply with the reporting obligations as required by the laws and regulations may result in joint punishment of the relevant authorities.
The main reporting obligations to the competent development and reform commission include:
(1) Reporting of Seriously Adverse Circumstances
Where any seriously adverse circumstance occurs during the overseas investment, such as heavy casualties of the dispatched personnel, a significant loss of overseas assets, or damage to China’s diplomatic relations with the countries concerned, the investor shall submit a report on the seriously adverse circumstance through the network system within five working days of the occurrence of such circumstance.
(2) Reporting of Project Completion
The investor shall submit a project completion report through the network system within 20 working days from the completion date of the project.
The domestic investor and the relevant responsible persons may be given disciplinary warnings by the competent development and reform commission if the investor fail to comply with the reporting obligations and refuse to correct within the time limit.
The domestic investors (including financial institutions and domestic individual shareholders of special purpose companies) that have completed the ODI registration with the foreign exchange administration bureau before December 31 of last year shall submit and report the overseas direct investment data of last year to the foreign exchange administration bureau even if there is no capital injection (contribution) or business operation. The specific reporting time shall be subject to the notice issued by the State Administration of Foreign Exchange and its local branches each year. The reporting time of this year starts from April 1 to June 30.
If an investor fails to report or delays to report the overseas direct investment data of last year as required by the law, it will be controlled and punished by the competent foreign exchange bureau. The enterprises controlled by the foreign exchange administration bureau are not allowed to conduct any foreign exchange transaction under the capital account.