According to “Measures for Administration of Chinese-Foreign Contractual Distribution ventures of Audio-Visual Products” and “Catalogue for the Guidance of Foreign Investment Industries”, Chinese investors shall be the majority shareholder of Chinese-foreign contractual joint enterprises which engage in audio-visual product distribution. Presently, Chinese-foreign joint ventures and wholly foreign-owned ventures are not allowed. Since Jan. 1st 2004, service suppliers in Hong Kong and Macao are permitted to establish audio-visual product distribution enterprises, cooperatively. They could own the majority of shares but not exceed 70% in equity joint ventures, while the majority equities not exceed 70% in contractual joint ventures.
The topic summarizes the related rules & regulations, registration requirements, procedures, accounting & tax by SMERT, SAIC, Tax Bureau and other related departments you may focus on in relation to foreign invested audio & visual products distribution company.