Decree 194/2013 on re-registration of foreign-invested enterprises incorporated before 1 July 2006 (Pre-2006 FIEs) under the old Foreign Investment Law will take effect from 15 January 2014. Under the new rules,

• A Pre-2006 FIE whose Investment Licence has expired and has not liquidated may apply to re-register and operate under the current Investment Law and Enterprise Law before 1 February 2014 subject to certain conditons. Beyond this time limit, such Pre-2006 FIE must liquidate.
•   The licensing authority is required to reiterate in the new Investment Certificate of a re-registered Pre-2006 FIE the investment incentives and conditions recorded in the old Investment Licence of such Pre-2006 FIE. This express requirement seems to address the concern of many Pre-2006 FIEs that they may “loose” existing investment incentives through the re-registration process.
• An un-re-registered Pre-2006 FIE will continue to operate according its current charter and Investment Licence. In case the current charter or the Investment Licence is silent, a wholly foreign invested enterprise with one owner will be subject to the provisions under the Enterprise Law applicable to a single member limited liability company and a joint venture or a wholly foreign invested enterprise with more than one owner will be subject to the provisions under the Enterprise Law applicable to a limited liability company with more than one member. This new clarification will likely help many Pre-2006 FIE to navigate through two incompatible legal frameworks.
•   An un-re-registered Pre-2006 FIE is allowed to invest in new project and engage in new business line as long as there is no change to the duration of the Investment Licence. Again this provision is giving more certainty to an un-re-registered Pre-2006 FIE which wishes to expand its operation.