Archive for the ‘Law on Registration of Foreign-invested Enterprises’ Category

DPRK revises law on registration of foreign -invested enterprises

Tuesday, January 31st, 2012

According to the Daily NK:

Choson Central News Agency (KCNA) announced on the 30th that North Korean authorities had enacted revisions regarding its Law on Registration of Foreign-invested Enterprise.

KCNA states “Chapter 8 Article 51 of the Law on Registration of Foreign-invested Enterprises protects the signing of labor contracts, labor and repose, labor protection, as well as the right of social insurance and social security.”

In addition, Chapter 10 Article 72 of the Foreign Investment Law and Chapter 4 Article 59 calls for the revision of foreign investment enterprise accounting, KCNA said. Specific changes, however, were not revealed.

North Korea’s Law on Registration of Foreign-invested Enterprise was established in May 1992 and has faced revision in 1999 and 2004. Laws applicable to foreign investment enterprises under the Law on Registration of Foreign-invested Enterprise are subject to change and amendment is scheduled in eight years.

This revision seems to be based on North Korea’s intent to secure foreign currency and foreign investment.

Such measures are expected to attract foreign exchange through assurance. Recently enacted laws have been introduced in the development of special economic zones. The Academy of Social Sciences at the North Korea National Research Institute stressed that an occasional audit of foreign companies may be reasonable.

In response, a representative of the Samsung Economic Research Institute stated in a phone call with Daily NK “At this time, Chinese companies seem to be primarily subject to revisions of the law.” He continued, “The intent seems to be to vanguard special economic zones.”

Following “sanctions on North Korea due to its nuclear policy and pattern of international relations, attraction of foreign investment may not be solved through a framework of law. Much remains unresolved.”

Read the full story here:
NK Enacts Foreign Investment Law
Daily NK
Kim Tae Hong
2012-1-31

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Law on Registration of Foreign-invested Enterprises

Monday, January 1st, 2007

From Naenara
Adopted by the decision No. 1530 of the Presidium of the
Supreme People’s Assembly on January 25, Juche 95 (2006)

Chapter 1. Fundamentals

Article 1. The Law of the DPRK on Registration of Foreign-invested Enterprises shall contribute to providing for a regime governing the registration of foreign-invested enterprises to offer every convenience for the registration.

Article 2. The registration of foreign-invested enterprises (hereinafter called business registration) is an important business for registering with the relevant organ the foreign-invested enterprises and their branches, agencies and representative offices, and branches, offices and agencies of the wholly foreign-owned enterprises.

The business registration shall include address registration, tax registration and customs registration.

Article 3. The address registration shall be undertaken by a provincial (or municipal) people’s committee, the tax registration by a provincial (or municipal) financial organ and the customs registration by a relevant customs office.

Article 4. The business registration in the special economic zone shall be governed by the relevant laws and regulations.

Article 5. The foreign-invested enterprises incorporated in the territory of the DPRK shall be registered with the business registrar.

The foreign-invested enterprises that have not been registered with the business registrar shall be prohibited from carrying out any business activity.

Article 6. The legitimate rights and interests of the foreign-invested enterprises that have been registered with the business registrar shall be protected by the law of the DPRK.

Article 7. A foreign-invested enterprise shall pay the commission on business registration.

Commission shall be fixed by the central financial guidance organ.

Article 8. The supervision and control over the business registration shall be done by the relevant business registrar and the supervisory and control organ.

Chapter 2. Address registration of foreign-invested enterprises
Article 9. The address registration of the foreign-invested enterprises shall be undertaken by the provincial (or municipal) people’s committee in the area where the enterprise is to be located.

The provincial (or municipal) people’s committee shall correctly register the address of a foreign-invested enterprise to be set up in the district of its jurisdiction.

Article 10. A foreign-invested enterprise should make the address registration in the name specified in the application for its incorporation. In this case, a foreign-invested enterprise should be located in the province (or municipality) where the address is to be registered.

Article 11. A foreign-invested enterprise shall send in an application for the address registration within 30 days of the approval of its incorporation, and its branch, agency or representative office within 20 days of the approval of its opening.

The branch, office or agency of a wholly foreign-owned enterprise shall complete address registration within 15 days of the approval.

Article 12. The application for address registration shall contain such particulars as the name of an enterprise, the address to be registered, the type of business, term of operation, the scheduled date for its operation, number of its staff and so on, and be accompanied by the copy of application of incorporation issued at the business registrar.

The application for address registration of a branch, agency or representative office of a foreign-invested enterprise, and a branch, office or agency of a wholly foreign-owned enterprise shall include such details as its name, address to be registered, the name of manager, term of operation, confirmation written by its head office, number of its staff, etc., and be accompanied by a letter of approval for incorporation.

Article 13. The provincial (or municipal) people’s committee shall review the application within 15 days from its receipt and issue a certificate of address registration which specifies such particulars as the date and number of registration, name and address of an enterprise, type of business, term of operation and number of its staff within 7 days after the approval of registration.

A foreign-invested enterprise that has a certificate of address registration issued may be provided with every condition necessary for such preparation of its operation as water and power supply and installation of telecommunications.

Article 14. When the application of address registration has been rejected, the provincial (or municipal) people’s committee shall give a notice of rejection specifying the reason to the applicant and the business registrar.

Article 15. In case the address registration is not able to be tendered within the prescribed period of time for unavoidable reasons, a foreign-invested enterprise shall submit an application for its extension to the relevant provincial (or municipal) people’s committee and obtain the approval from it.

The application for extension of the address registration shall specify such details as the name and address of an enterprise, the date of issue for the certificate of approval of incorporation, the reason and period for its extension, etc.

Article 16. A foreign-invested enterprise whose name and address and term of operation have been altered with the approval of the business registrar should make the registration for their alteration at the address registration organ within 10 days.

When the address to be altered differs from that of district under jurisdiction of the provincial (or municipal) people’s committee that has presented the address registration, the registration for alteration should be cancelled and the address registration be tendered at the provincial (or municipal) people’s committee in the area where the new address is specified.

Article 17. In case the certificate of address registration has been lost, due notification shall be, within 5 days, made to the provincial (or municipal) people’s committee that has presented the address registration.

The provincial (or municipal) people’s committee that has received a notification of the loss of address registration certificate should take an appropriate measure within 15 days.

Article 18. The certificate of address registration is valid for 3 years.

A foreign-invested enterprise intending to extend the term of validity for the certificate of address registration shall apply for its extension to the provincial (or municipal) people’s committee 15 days before the expiry of the term.

Article 19. When the dissolution of a foreign-invested enterprise is allowed to be approved owing to the conclusion of the term of operation and other reasons, the business registrar shall inform the provincial (or municipal) people’s committee of this matter.

Article 20. The provincial (or municipal) people’s committee that has received a notification of its dissolution shall delete the relevant foreign-invested enterprise in the register book and withdraw the certificate of address registration.

A foreign-invested enterprise whose address registration has been cancelled is not allowed to conduct its business operation.

Chapter 3. Tax registration of foreign-invested enterprises
Article 21. A foreign-invested enterprise shall submit an application for tax registration to a provincial (or municipal) financial organ within 20 days from the day of address registration.

The application for tax registration shall contain the name and address of an enterprise, total investment and registered capital, its mode of management and category of business, the name of its bank and the number of its account, term of business, the number of its employees and so on, and be accompanied by a copy of the approval of incorporation and the certificate of address registration.

Article 22. The provincial (or municipal) financial organ shall review, and approve or reject the application for tax registration within 10 days from its receipt.

When approved, the certificate of tax registration and when rejected, a notice of rejection with a reason clarified shall be sent to the applicant.

Article 23. A certificate of tax registration shall contain the name and address of an enterprise, name of manager, term of operation and category of business, name of its bank, number of its account and date and number of address registration.

Article 24. A foreign-invested enterprise that has changed the content of tax registration shall submit an application for change to the relevant provincial (or municipal) financial organ within 10 days.

The application for alteration of tax registration shall contain the name and address of an enterprise and the reason for alteration, and be accompanied by the document of approval of alteration issued by the business registrar.

Article 25. The provincial (or municipal) financial organ shall reissue the certificate of tax registration within 7 days after the receipt of the application of alteration.

Article 26. The provincial (or municipal) financial organ shall delete the foreign-invested enterprise, dissolved owing to the conclusion of the term of its operation and other reasons, in the register book and withdraw the certificate of tax registration.

Chapter 4. Customs registration of foreign-invested enterprises
Article 27. A foreign-invested enterprise shall submit an application of customs registration to the relevant customs organ within 20 days from the day of address registration.

The application of customs registration shall contain the name and address of an enterprise, the date of approval of incorporation, term of operation, category of business, the name of its bank and the number of its account, and be accompanied by a copy of the approval of incorporation, the certificate of address registration, financial guaranty issued by its bank and other documents required by the customs organ.

Article 28. The customs organ shall, within 5 days of receipt of the application for the customs registration, review and approve or reject it.

When the application for customs registration has been approved, the customs organ shall register it in the customs register book. When rejected, it shall send a notice of rejection with a reason clarified to the applicant.

Article 29. A foreign-invested enterprise that has changed the content of customs registration shall submit an application for the alteration to a relevant customs organ within 10 days.

The application for alteration shall contain the name and address of an enterprise and the reason for alteration, and be accompanied by the document of approval for alteration issued by the business registrar.

Article 30. In case the dissolution of a foreign-invested enterprise owing to the conclusion of the term of its operation and other reasons has been approved, the business register shall notify the relevant customs organ of it.

Article 31. On receipt of the notice of dissolution, the customs organ shall delete the foreign-invested enterprise in the register book.

Chapter 5. Sanctions and petition
Article 32. In case a foreign-invested enterprise failed to make registration of an enterprise or registration for alteration, fabricated a certificate of registration or continued its operation even after the cancellation of registration, the administrative penalties including fine, suspension of operation and cancellation of business registration shall be imposed.

Article 33. In case of a severe offence, criminal proceedings shall be instituted against the responsible person.

Article 34. When grievance is harbored in relation to the registration of a foreign-invested enterprise, an appeal may be filed to the Cabinet or the relevant registrar.

Any such appeal shall be settled within 20 days from the receipt of such a case.

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