What should individuals pay attention to in overseas direct investment: 1. Can domestic residents directly invest overseas to set up companies for production and operation? At present, according to the Notice of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Management of Overseas Investment, Financing and Return Investment by Domestic Residents through Special Purpose Companies (Huifa [2014] No.37, hereinafter referred to as Document No.37), domestic residents can directly set up or indirectly control special purpose companies to invest and finance overseas with their legally held assets or rights of domestic enterprises or their legally held overseas assets or rights. In addition, individual domestic residents cannot make overseas direct investment. 2. Can domestic individuals invest and set up companies overseas with their overseas legal assets? If yes, what materials need to be submitted? Circular No.37 stipulates that domestic residents can directly establish or indirectly control special purpose companies abroad with their legally held overseas assets or rights and interests for investment and financing. Individual domestic residents who invest in a special purpose company with lawful overseas assets or rights and interests shall apply for foreign exchange registration of the domestic individual special purpose company to the bank where they live in accordance with the Notice of the State Administration of Foreign Exchange on Further Simplifying and Perfecting Foreign Exchange Management Policies for Direct Investment (Huifa [20 15] 13, hereinafter referred to as 13). For details, please refer to "2.5 Foreign Exchange (Supplementary) Registration of Domestic Individual Special Purpose Companies" in the annex of document 13. 3. Company A wants to acquire 0/00% equity of an overseas enterprise, but the enterprise was established overseas by mainland residents in 20 15 years, and it is understood that it has not gone through the formalities in the foreign exchange bureau. Excuse me, can company A buy this enterprise? If the enterprise belongs to the special purpose company specified in Circular No.37, the actual controller within the enterprise shall go through the formalities of foreign exchange registration of the special purpose company at the foreign exchange bureau, and then go through the formalities of cancellation of foreign exchange registration of the special purpose company at the bank. Then, with the approval documents of relevant departments, Company A goes to the bank where Company A is registered to go through the foreign exchange registration procedures for overseas direct investment. 4. Domestic resident B establishes a special purpose company overseas and registers it in the foreign exchange bureau. An existing domestic enterprise wants to buy 50% shares of overseas special purpose companies. Can the consideration of equity transfer be paid directly in China? Of course. According to the provisions of document 13, domestic individuals should go to the bank where the special purpose company is registered to go through the formalities of changing the registration of the special purpose company. Equity transfer funds between domestic institutions shall be paid in RMB. 5. Domestic resident C has set up a special purpose company overseas, and now it is ready to register according to Circular No.37, and its capital contribution assets are 60% of C's shares in domestic enterprises. Can I register with the foreign exchange bureau? According to Circular No.37, domestic residents can use the assets or rights of domestic enterprises to contribute to special purpose companies. At the same time, according to the provisions of document 13, domestic residents can go directly to the bank where the assets or rights of domestic enterprises are registered to go through the registration procedures of special purpose companies. However, before the registration, in addition to paying the registration fee (including overseas payment) of the special purpose company, if domestic residents have other contributions (including overseas contributions) to the special purpose company, they shall go through the supplementary registration procedures with the foreign exchange bureau in accordance with the foreign exchange supplementary registration procedures of the special purpose company. 6. The shareholders of overseas companies are mainland residents, but the overseas investment was not filed at that time. Now it is necessary to set up a foreign company in China due to business needs. What procedures should I go through? If an overseas company belongs to the special purpose company specified in Circular No.37, its domestic shareholders shall go through the formalities of foreign exchange (supplement) registration of the special purpose company. After completing the supplementary registration, the company may, with the approval or filing documents of the relevant competent authorities, go through the foreign exchange registration procedures for foreign direct investment at the bank where the domestic enterprise is to be established according to the provisions of document 13. Article 16 of the Code of Conduct for Overseas Investment and Management of Private Enterprises points out that the state guarantees foreign-invested enterprises to participate in government procurement activities through fair competition according to law. Government procurement should treat products and services provided by foreign-invested enterprises in China equally according to law. We ordinary people can also directly invest overseas, but only for the purpose of investing and financing and holding the legitimate assets of domestic enterprises! If you want to invest abroad, you must first go through the overseas investment filing, and then you must go through the foreign exchange registration procedures for foreign direct investment at the bank registered by domestic enterprises after applying for a period of time!