1.under the Enterprise Law, for sectors/lines stipulated in the laws investments and relevant laws to be conditional for business, the enterprise shall only conduct business in such sectors/lines if being eligible as stipulated (Clause 2,Article 7)
Conditions for business shall be issued by competent agencies and are in the form of business licenses/or certificates of eligibility for operations/ or practice permits/or certificates of professional liability insurance /or request for certification of the legal capital/or approval from competent State agencies/or other requests;
At the moment, conditions for business are stipulated in a number of ways: conditions to be met before business registration/ or conditions during business activities (e.g. at the place of business, or requests regarding equipment, workshops, or requests regarding zones of law materials, or requests regarding professional qualifications and expertise of the labourers, …)
2. construction of textile and garment workshops for re-sale to enterprises: for domestic enterprises, the will be no cap on the ratio; in cases where foreign investor are purchasers, the maximum ratio for sale is 49% if already listed; however, sale at a cheap price should be avoided, and is considered a breach of the “red box”, as such, sale should be organized in the form of an auction. Lao Bao Commercial Zone is not an exception and also needs to comply with the common principles.