This year, the Xiamen industry and commerce department has promulgated a series of measures to further simplify application procedures and lower entry thresholds for FIEs.

These measures include mainly the following: contracts and credit proof are waived for FIE registration; changes in articles of association can be signed by the company's legal representative; notice on reduction of capital can be issued once instead of three times; registration for the addition or reduction in the number of branches can only be filed for the record; the company chop does not have to be returned upon cancellation of registration.

In addition, limited companies set up by FIEs are required to pay 15% of their capital within three months after establishment, while the remainder may be paid up within two years. Investment companies are allowed up to five years to pay up the full capital. If a foreign-funded investment company pays the first instalment of 15% of its registered capital within three months but fails to pay the remainder as scheduled, it is allowed to extend the payment period for one more year upon signing a payment pledge. If further extension is required after the additional one year, approval has to be sought from the relevant authorities.

Following the implementation of these preferential policies, the Xiamen municipal industry and commerce bureau has approved the establishment of 41 FIEs since 1 January, with total investment amounting to US$181 million and registered capital to US$97 million. Foreign parties' contributions amount to US$91 million.