Equity Incentive Plans and the Capital Account
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Q: For foreign individuals who wish to make a foreign exchange registration to participate in an equity incentive plan,what are the domestic residency requirements under the Notice of the State Administration of Foreign Exchange on Issues Concerning the Foreign Exchange Administration of Domestic Individuals’ Participation in Equity Incentive Plans of Overseas Listed Companies (SAFE Document [2012] No. 7)?
A: According to SAFE Document No. 7,domestic individuals who have at least one year of continuous residence in the People’s Republic of China (excluding diplomats of foreign countries and representatives of international organizations stationed in China) may register to participate. The term “domestic individuals” refers to directors,supervisors,senior managers and other employees of domestic companies that meet the requirements of the Regulation of the People’s Republic of China on Foreign Exchange Administration ( the Regulation),including Chinese citizens (this includes citizens of Hong Kong,Macao and Taiwan) and foreign individuals as per Article 52 of the Regulation.
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