Chinese authorities have released an updated guidance on the registration process for share plans with the State Administration of Foreign Exchange (SAFE), broadening the scope to cover most types of share plans.
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
China Issues New Rules on SAFE Registration Process for Stocks & Share Plans
1. China Issues New Rules on SAFE Registration Process for Stocks & Share Plans
(Sunnyvale, CA) – Chinese authorities have released an updated guidance on the registration process for
share plans with the State Administration of Foreign Exchange (SAFE), broadening the scope to cover
most types of share plans.
Circular 7 replaces Circular 78 (issued on April 2007) and contains the following:
Changes to scope on initial SAFE registration
As per the new guidance, the registration requirement has been extended to cover a majority of
plans offered including share options, stock purchase plans, restricted stock units, restricted
shares, performance shares, etc.
Plans involving awards to non-employees belonging to a certain category, such as board
directors or independent contractors can now be included in SAFE.
Share plans can also be extended to employees of representative offices.
Coverage has been extended to non-PRC nationals in order to standardize the administration
procedure for both, PRC and non-PRC nationals.
Documents needed for initial SAFE registration
The new application process calls for lesser number of documents particularly removing the need for
broker agreements. The application docket will include the following items:
an application letter
standard registration form
proof of overseas listing
an employment letter and certain other administrative documents
SAFE Reporting Standards
The administration of the new guidelines will be scrutinized closely. Quarterly reporting deadlines have
been established which reduces the deadline from 10 working days to three working days after the end
of a quarter.
Major revisions to registered SAFE plans will require supplementary registration generally within three
months. In case of a merger and acquisition or expiration of plans, a deregistration process needs to be
implemented.
2. The requirement of obtaining local SAFE approval when foreign currency is converted to RMB on the net
proceeds derived from stock transactions by a company has been abolished. This will be taken care of by
the concerned banks.
Please call/email for more details.
Get the latest press releases and updates on international tax, compliance and other legal news at Nair
& Co. Industry Alerts.
About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal
department for your international operations. If you are expanding abroad for the first time, our turnkey
solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+
client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and
Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the
International Association of Outsourcing Professionals (IAOP). Learn more at www.nair-co.com
Read also on: SAS compliance, International financial reporting