Transportation Company

Specific Arrangements for CEPA

• Permission of Hong Kong and Macau service suppliers to establish wholly-owned or joint venture in the operation of road freight in mainland China
• Execution of the operation of the freight "through train" business between Hong Kong, Macau and all provinces, cities and autonomous regions in mainland China
• Creation of wholly-owned or joint venture in the operation of road passenger transport in the western regions in mainland China
• Creation of wholly-owned in the operation of road freightage station and motor vehicles maintenance and other road transport-related business in mainland China
• From January 2007, wholly-owned will be permitted to operate air freight commission business

Form of Registration

• Joint venture in the operation of road passenger transport
• Wholly-owned in the operation of road passenger/freight transport business
• Hong Kong and Macau service suppliers can set up wholly-owned, joint venture or co-operative venture and obtain the road business permit in the operation of the freight "through train" business between Hong Kong, Macau and all provinces, cities and autonomous regions in mainland China

Requirements for Service Suppliers

Major investors shall have at least one company engaged in road passenger transport business for more than 5 years in mainland China.

Requirements for Incorporation

• Operation of Road Passenger Transport Business
  1. - Hong Kong and Macau service suppliers' shareholding not more than 49%
  2. - 50% of the registered capital of the corporation shall be used for construction and alteration of the passenger infrastructure
  3. - The vehicles utilized shall be passenger vehicles with medium level or above
• The road transport corporation shall not operate for more than 12 years; nevertheless, those with 50% or more funds used for construction of the passenger/freight transport station/yard infrastructure can operate for 20 years long 

Required documents for Incorporation

ission of the following data to the Ministry of Communications:

• Application for incorporation
• Project proposal
• Investor's legal certificates
• Investor's credit certificates
• Investor contributing land use right, installation and equipment and other investment shall provide valid certificate of assets assessment
• Intended creation of Sino-Foreign Equity Joint Venture or Sino-Foreign Co-operative Joint Venture requires, in addition to the foregoing information, the submission of the letter of intent of co-operation, with all foreign language data accompanied by Chinese translations

Submission of the following documents to the competent commercial authority:

• The written approval of project establishment issued by the competent communications authority under the State Council
• Application for incorporation
• Feasibility study report
• Enterprise Name Approval in Advance Notice
• The contracts (or application form to be supplied by wholly-owned) and articles of association of the joint venture
• The register and curriculum vitae of the members of the Board and chief executives of the joint venture of wholly-owned
• The Chinese partner's business license of incorporation, bank reference letter
• Certificate of Hong Kong and Macau service supplier, business registration certificate, certificate of incorporation and bank reference letter
• The lease contract for the office premises of the corporation

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