According to the Chinese foreign equity joint venture law regulations for the implementation of article twentieth, Sino foreign cooperative enterprises, the detailed rules for the implementation of the provisions of article fifteenth, the total amount of investment of Chinese foreign equity joint or cooperative enterprises in the contract, can with corporate loans; and, in accordance with the interim provisions of the State Administration for Industry and Commerce on Sino foreign joint equity enterprises registered capital and the total amount of the proportion of investment (March 1, 1987), the difference between the total investment and registered capital, is allowed in the mainland domestic and foreign borrowing.

There is a considerable understanding of the foreign Chinese, joint venture, cooperation or the clear enterprise law, are expressly, enterprise shall not reduce its registered capital during the operation; in order to avoid the funds into the Chinese, no legitimate pipe exit, therefore, in the establishment of enterprises, registered capital, reduce to minimize, if not to achieve a certain scale of production, but also try to machine equipment, buildings, land use rights or other proprietary technology as capital. In short, the working capital planning in the future, to domestic and foreign loans, so that operating profits of legal imports or retained offshore.

A small part of another foreign in investment funds, just know production liquidity shortage, and prior to the establishment of China promised to "assist corporate loans", in the law, and has no effect; foreign may not understand, may also be in the loving face case, which in the absence of overall planning and legal protection under the environment, foreign exchange into the borrowing (mostly in foreign borrowing, indirect exchange to China), remittance in place, the company can produce profit repayment fortunately, many money into a bottomless pit, in case the company closed down, foreign borrowing go back, suffered heavy losses!

The foreign investment enterprises lack of funds, they cannot obtain loans from local banks, to shareholders of borrowing, foreign legal operation in the loan, so as to guarantee their rights, provide the following reference.

A foreign-funded enterprise, to the shareholders (investors) analysis of loan scheme:

(A), enterprise to a domestic individual shareholder loans.
According to the Supreme People's court "a number of opinions" about people's court debit and credit provisions, foreign-invested enterprises can to domestic borrowing, but because of the Sino foreign joint ventures, cooperative enterprises, do not allow domestic individual as a joint venture, cooperative enterprises shareholders, therefore, investors in foreign-invested enterprises, there is no domestic individual, this is not the answer.

If it is turned to foreign investment in the individual shareholders to Chinese (such as foreign borrowing, which belongs to the individual) discussed below overseas individual shareholder loan problems.

(Two), to the domestic legal person enterprises, enterprises or other economic organization shareholder loans.
Because the relevant law or the provisions of the company law China bank, does not allow non - financial institutions operating outside the scope of financial loans, unless the shareholders of China funded enterprises is the financial industry, can be in accordance with the provisions of bank credit loan, the Chinese legal person shareholders, enterprises or other economic organizations, is not to lend money to foreign-funded enterprises. One of the biggest reasons this is also the general Chinese shareholders refused to lend money to.

(three), business to foreign legal person, enterprise or individual shareholder loans.
The China "exchange control regulations" is allowed to foreign borrowing, the so-called foreign debt, system Chinese by state organs, organizations, enterprises (including state-owned, collective, private or foreign-funded enterprises), business, financial institutions or other institutions to overseas international financial organizations, foreign governments, financial institutions, enterprises, or other institutions with foreign currency debt bear with all contractual obligations of the borrower to Chinese, registered in the territory of foreign banks and domestic joint venture banks, foreign exchange borrowing shall be regarded as external debt, in practice to overseas people borrowing may also allow its loan approval.

Two,To overseas shareholder loans should note

Foreign funded enterprises as to a foreign legal person, enterprise or individual shareholder loans, should note the following:

(a), Chinese the foreign debt registration management system. Because of the introduction of foreign investment enterprises is the super national treatment, its external borrowing, without prior approval, only need to borrow, go through the formalities of registration. But in order to repay debt and future normal to normal export, practice in foreign loan contract signed, in time to the local people's bank administration of foreign exchange for the foreign debt registration "debt contract signing regularly, regular registration is filled out in accordance with the loan contract. Foreign funded enterprises to borrow the premise, is the registered capital stipulated in the investment contract provisions on schedule in place, can be allowed to borrow foreign debt, and long-term debt accumulated amount, the difference should not exceed the relevant state departments for approval of the total investment and the registered capital.

(two), registration issued by the administration of foreign exchange to the enterprises "registration certificate for external debt.".

(three), the foreign guarantee to safeguard debt creditor. According to the people's Bank of China announced in September 25, 1996 of the "management approach" foreign guaranty institutions within Chinese territory and in January 1, 1998, the regulations published by the State Administration of foreign exchange of the "measures for the administration of external guarantees provided by domestic institutions such as the detailed rules for the implementation of" pointed out, foreign guaranty refers to domestic institutions China (excluding foreign-funded financial institutions) with guarantees, standby letters of credit, promissory notes, draft form, issued by the foreign guarantee, to "thirty-fourth PRC security law" provisions of the mortgage of property, or to guarantee law the first section of the fourth chapter the provisions of property mortgages, and the second section seventy-fifth provisions of the rights of foreign pledge, the commitment to Chinese overseas institution or a domestic foreign financial institutions, when if the debtor does not in accordance with the contract agreed to pay the debts, required by the guarantor to perform the obligations.

The foreign guarantee must be signed in the foreign loan contract, the provisions or filing documents to the local foreign exchange bureau for examination and approval, apply for the "foreign guaranty contract regular registration", the external guarantee is legal. In addition, also should be the guarantee law for mortgage, pledge registration, so that it can resist the third person, secured claim to priority.

And the provisions of the regulations on foreign exchange control, China, the guarantor shall not provide guaranty for registered capital of enterprises with foreign investment; it shall not provide guarantee for money losingoverseas enterprises; without approval shall be converted into Renminbi foreign borrowing.

(four), to provide foreign guaranty may be:

(1) funded enterprises assets. Such as the land use right, factory buildings, machinery and equipment, patent, trademark and so.

(2) investment shareholders. Sino foreign joint venture enterprise contract, are expressly agreed in the investment share of Chinese or foreign, when the joint venture needs to borrow funds from overseas, may be approved by the board of directors and the resolution of the conference, to foreign investment equity pledge of rights "set up" foreign guaranty, loan cannot be repaid if, in accordance with the law to auction or sell or discount, with equity compensation arrears.

Although the foreign trader generally, run the administration of foreign exchange service is very troublesome, difficult; however, it has an important national exchange control work, the staff culture level they are college degree or above, and have a certain procedures and for the time limit, it also prepared a "National Foreign Exchange Business Handbook, as well as the application form for use, fast and convenient, legal protection. Therefore, the author suggests that the foreign should change the dangerous illegal remittance!