The PRC Company Law allows company shareholders to make capital contributions with certain non-cash assets that include equity in other companies. The State Administration for Industry and Commerce recently promulgated the Measures for the Administration of the Registration of Capital Contribution in the Form of Equity (SAIC Measures) to establish a procedure for the registration of equity capital contributions. The SAIC Measures apply to purely domestic companies as well as foreign investment enterprises (FIEs). In the case of FIEs, foreign investment approvals from Ministry of Commerce or its local counterparts are also required for equity capital contributions, but there has not been a formal procedure for such approvals until the issuance of the Interim Provisions of the Ministry of Commerce for Equity Investments in Foreign Investment Enterprises (Interim Provisions). Learn more about the Interim Provisions.