How to obtain the land-Use Right for Foreign-invested enterprises in China?
- April 4, 2018
- Posted by: Yolandy
If the foreign-invested enterprises need to obtain the Land-Use Right when they want to start their official operating in China, they can obtain the Land-Use Right through the following four ways: Ⅰ Obtained the Land Use Rights through Allocation Including 3 ways: （1）The Land Management Department will allocate a part of the land from state-owned land resources for use by foreign-invested enterprises. Foreign-invested enterprises must pay compensation to the original land-using unit. （2）After the Land Management Department requisitions collectively-owned land as state-owned land, it allocates this land to foreign-invested enterprises. Foreign-invested enterprises must pay land compensation fees, resettlement subsidies and other expenses. （3）The Sino-foreign joint ventures and Sino-foreign cooperative companies’ Chinese part use their Land Use Rights as investment or conditions for cooperation so that the Joint Ventures or Cooperative Enterprises can obtain the Land Use Rights. Ⅱ Obtained the Land Use Rights through Assignment Obtained the Land Use Rights through assignment means that according to the stipulated conditions, the fixed number of years, and the use, the State as the land owner, assign the Land Use Rights to foreign-invested enterprises within a certain number of years in the form of granting contracts. Foreign-invested enterprises will pay the assignment fees of the Land Use Right so that can obtain Land Use Rights. With regard to the acquisition of land use rights, foreign investors shall sign a written transfer contract with the land administration department of the municipal or county people’s government. Foreign investors shall pay the entire land use right transfer fee within 60 days of signing the contract. Ⅲ Obtained the Land Use Rights through Transferring The acquisition of Land Use Rights through transfering means that foreign businessmen obtain Land Use Rights from the original land users through legal methods, such as sales, gifts, and exchanges. Prerequisites for the transfer: The original land user must pay the entire Land Use Right transfer fee according to the Land Use Right transfer contract, obtain the Land Use Right Certificate, and make corresponding investment and development. When a foreign-invested enterprise acquires the Land Use Right through transfering, they shall sign a transfer contract with the original land user, that is, the transferor of Land Use Rights assign the transfering contract, and handle the change registration in the land administration department. Ⅳ Obtained the Land Use Rights through Leasing Prerequisite for lease: It must be land that has already been invested and developed. Foreign-invested enterprises obtain Land Use Rights through leasing means that land users will be as lessors to let the Land Use Rights either alone or with buildings on the ground to foreign-invested enterprises, and foreign-invested enterprises need pay the rent to the lessor. Restrictions on land used by foreign-invested enterprises： （1）Foreign-invested enterprises have only the right to use land and have no ownership. （2）The fixed number of years of land used by a foreign-invested enterprise is the same as that of the approved operating period. （3）Foreign-invested enterprises are not allowed to change the use of land without permission. （4）The use of land by foreign-invested enterprises must strictly abide by the overall plan and the overall urban planning, which is in line with the overall requirements of national economic construction.