Chinese laws and regulations have stipulated the investment ratio for foreign-invested enterprises in Chinese territory, i.e., the foreign investor's ratio shall be not less than 25 percent of the registered capital of the joint venture.

For Sino-foreign cooperative enterprise with a legal representative, the foreign investor's share shall not be less than 25 percent of registered capital; for cooperative enterprises without a legal representative, the investment ratio or cooperative conditions shall be in accordance with the regulations stipulated by the appropriate department of the State Council. For foreign-owned enterprises, the registered capital shall be solely invested by the foreign owners. As for Sino-foreign joint ventures, the shares purchased and held by the foreign shareholders shall not be less than 25 percent of the registered capital.

If the foreign investment ratio is less than 25 percent, or not otherwise specified, the necessary ratification and registration must be completed prior to issuing a certificate of "Foreign-investment ratio less than 25 percent", which shall be shown on the business license as a remark after "Mode of enterprise".