04 Dec Authorisation to withdraw money from China legally
Although the Chinese legal system is very restrictive for withdrawing funds from China, the Chinese administrative authorities allow its citizens to invest abroad, provided that they follow the internal procedures.
To start the procedure, the citizens who wish to transfer money abroad must have a project in the foreign country where they wish to send their funds.
The internal procedure in China is divided into three phases:
- The project must be registered with the Chinese authorities.
- The project must be registered with a Chinese bank.
- The bank must notify the project to the State Administration of Foreign Control.
In phase 1, Chinese citizens must describe the project and identify the amount of the investment that they wish to make in it. Remember that the investment must be made through a company; investors cannot be natural persons. The government will authorise the project only if it is serious and is of certain interest for the Chinese economy.
In phase 2, the content of the information is similar to that in phase 1, where the bank’s notification ensures double control about the project’s seriousness.
In phase 3, if the documentation is prepared properly and the project is of interest, this is simply a notification between the bank and the Chinese authorities. Once this phase is carried out, the authorisation is received to invest abroad.
To ensure a successful foreign investment, the project must be tied up both in China and in the destination country. The project’s profitability must also be accredited.
Finally, remember that this type of Chinese investment in foreign countries often enables Chinese investors to obtain residence permits or special temporary visas in the country of investment.
Please contact us for further information.