Construction & Design Company

Specific Arrangements for CEPA

Hong Kong and Macau service suppliers are permitted to provide construction & design, engineering, centralized engineering, urban planning and landscaping design services, in the forms of wholly-owned or joint venture, or through the establishment of their wholly-owned consulting engineering companies, in mainland China.

From 1 January 2007, Hong Kong service suppliers will be permitted to set up their wholly-owned construction cost consulting corporations in mainland China on the basis of their operating results in Hong Kong and mainland China which will be collectively assessed as the qualification for their application in the mainland.

Requirements for Service Suppliers

• For incorporation of foreign investment construction & design corporation in mainland China, in applying for the qualification of construction & design corporation, the service supplier shall have Hong Kong and Macau residents who have obtained the qualifications of certified architects and certified engineers in China, as well as Hong Kong and Macau residents with relevant experience, of a number not less than 25% of the total number of certified professionals and the total number of technical cadres respectively, as required by qualification rating standards
• For incorporation of joint-venture construction & design corporation, and cooperative construction & design corporation, in applying for the qualification of construction & design corporation, the service supplier shall have Hong Kong and Macau residents who have obtained the qualifications of certified architects and certified engineers in China, as well as Hong Kong and Macau residents with relevant experience, of a number not less than 12.5% of the total number of certified professionals and the total number of technical cadres respectively, as required by qualification rating standards
• For incorporation of foreign investment construction & design corporation, the foreign service supplier shall have their architects and engineers registered in China as well as technical cadres, each of whom shall reside consecutively for not less than 6 months per year within the territory of the People's Republic of China
• To liberalize the requirement for the period of stay of Hong Kong and Macau professionals in mainland China, their period of stay in Hong Kong and Macau can be included in the period of stay in the mainland

Required Documents for Incorporation

Submission of the following documents are made to the local Foreign Trade & Economic Cooperation Bureau:

• Application for incorporation
• Feasibility study report
• Contracts, and articles of association
• Enterprise Name Approval Advance Notice
• Certificates of incorporation, bank reference letter and certificates of service suppliers in their proper locations of the investors
• Appointment documents and certificates of the proposed chairman, members of the Board, manager, engineering technical principal
• Balance sheets and profit & loss statements of the last three years audited by a Certified Public Accountants firm

Submission of following documents are to be made to the competent administration for construction to apply for the qualification of foreign investment construction & design corporation:

• Declaration form of foreign investment construction & design corporation qualification
• Certificate of approval for foreign investment corporation
• Business license
• Foreign investors' certificates of incorporation, bank reference letters in their proper locations
• Foreign investors' personal practicing qualification certificates in their proper locations, as well as the construction & design achievement and goodwill certificates for persons and corporations issued by the competent governmental authorities, or industry academies, associations and notary public offices
• Other documents as required by the administrative provisions on the management of corporation qualification

If you would like further information concerning Construction & Design Company Incorporation, please contact our professionals and we will provide you with free advisory.