It is equivalent to capital increase, and the increased registered capital comes from foreign capital.
-The concepts of capital increase and M&A are vague. For the enterprise itself, it is to increase capital. When the amount of capital increase is enough for the other party to control the company's shares, there is the concept of M&A in it.
Process of capital increase: To set up a Sino-foreign joint venture company, it is generally necessary to obtain the approval documents of the corresponding government departments (generally the Ministry of Commerce at all levels) first. This is based on the total investment to determine the approval level. You can consult the relevant legal provisions (generally at least prepare the project proposal, feasibility report, contract, articles of association and other relevant application documents); Secondly, after the approval of the corresponding government departments, it is necessary to obtain the relevant approval documents of capital investment from the corresponding foreign exchange management departments, and then it can enter the industrial and commercial capital increase process.
At the same time, when it is to be changed into a Sino-foreign joint venture, China requires that the proportion of Chinese and foreign investors in the registered capital of a Sino-foreign joint venture can only be recognized as a Sino-foreign joint venture if it reaches 25%.
Please consult industrial and commercial registration Hall for the specific process.