· Document Number：Letter No. 67 [2013] of the Ministry of Commerce

· Area of Law： Civil Law

· Level of Authority： Departmental Regulatory Documents

· Date issued：02-17-2013

· Effective Date：02-17-2013

· Issuing Authority： Ministry of Commerce Ministry of Civil Affairs

· Status： Effective

Notice of the Ministry of Commerce and the Ministry of Civil Affairs on Issues concerning the Establishment of For-profit Elderly Care Institutions and Disability Service Institutions in the Mainland by Service Providers from Hong Kong and Macao
(Letter No. 67 [2013] of the Ministry of Commerce)
The commerce departments and civil affairs departments of all provinces, autonomous regions, municipalities directly under the Central Government, and Xinjiang Production and Construction Corps:
In accordance with the Supplement IX to the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Supplement IX to the Mainland and Macao Closer Economic Partnership Arrangement as approved by the State Council, you are hereby notified of the matters concerning the establishment of for-profit elderly care institutions and disability service institutions in the Mainland by service providers from Hong Kong and Macao as follows:
I. A service provider from Hong Kong or Macao is permitted to establish an elderly care institution or disability service institution in the form of a Chinese-foreign equity joint venture, a Chinese-foreign contractual joint venture, or a foreign-funded enterprise in the Mainland by means of new establishment or merger and acquisition.
II. A service provider from Hong Kong or Macao that applies for the establishment of a for-profit elderly care institution or disability service institution shall have good reputation and business capacity and at least one service provider has been engaged in elderly care services or disability services for more than three years in Hong Kong or Macao.
A service provider from Hong Kong or Macao shall also conform to the definition of “service provider” as prescribed in the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement and the relevant supplements thereto and meet the relevant prescribed requirements.
III. The establishment of and change in a for-profit elderly care institution or disability service institution shall, after the commerce department at the provincial level at the locality of the for-profit elderly care institution or disability service institution has solicited opinions from the civil affairs department at the same level, be examined and approved in accordance with the laws and regulations regarding foreign investment. As of July 1, 2013, for the establishment of and change in a for-profit elderly care institution, the applicant shall first file an application for administrative license with the civil affairs department in accordance with the relevant provisions of the Law on Protection of the Rights and Interests of the Elderly, and the commerce department at the locality of the applicant then shall conduct the examination and approval of the application.
To apply for the establishment of a for-profit elderly care institution or disability service institution, besides documents as required for the establishment of a foreign-funded enterprise, a service supplier from Hong Kong or Macao shall submit the duplicate of the relevant valid license issued to the service supplier by the Social Welfare Department of Hong Kong or the Social Welfare Bureau of Macao or the exemption certificate, or the notification letter on providing the service supplier with annual social welfare subsidies and other employment certificates.
IV. A for-profit elderly care institution or disability service institution shall take the provision of social services as the tenet, pay tax according to law, and engage in business operations in compliance with regulations. No for-profit elderly care institution may engage in residential discount endowment and other business.
V. Where the business scope of a for-profit elderly care institution or disability service institution includes medical health services, the institution shall fulfill the examination and approval formalities according to the relevant policies.
VI. All commerce departments shall strengthen the statistics of for-profit elderly care institutions and disability service institutions that are established in the Mainland by service providers from Hong Kong and Macao. In the issuance of a certificate of approval, you shall select “Maintenance services for the elderly and disabled” in the Industry Category (paragraph 8414 of the National Economic Industrial Classification). All civil affairs and commerce departments shall strengthen supervision and administration of the relevant institutions within their respective jurisdictions and promote the sound development of the work of attracting foreign investment to the relevant fields.
In case of any problem encountered in the implementation hereof, all commerce and civil affairs departments shall contact with the Ministry of Commerce (the Department of Foreign Investment Administration) and the Ministry of Civil Affairs (the Department of Promotion of Social Welfare and Charitable Causes) in a timely manner.
Ministry of Commerce
Ministry of Civil Affairs
February 17, 2013