Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 80

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 80
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stipulates several capital control measures with respect to the outbound remittance of profits from domestic entities to offshore entities,
including (i) banks must check whether the transaction is genuine by reviewing board resolutions regarding profit distribution, original
copies of tax filing records and audited financial statements, and (ii) domestic entities must retain income to account for previous years’
losses before remitting any profits. Moreover, pursuant to Circular 3, domestic entities must explain in detail the sources of capital
and how the capital will be used, and provide board resolutions, contracts and other proof as a part of the registration procedure for
outbound investment.

On October 23, 2019, SAFE issued Circular of the State
Administration of Foreign Exchange on Further Promoting the Facilitation of Cross-border Trade and Investment, or the Circular 28, which
took effect on the same day. Circular 28 allows non-investment foreign-invested enterprises to use their capital funds to make equity
investments in China, provided that such investments do not violate the effective special entry management measures for foreign investment
(negative list) and the target investment projects are genuine and in compliance with laws. Since Circular 28 was issued only recently,
its interpretation and implementation in practice are still subject to substantial uncertainties.

Pursuant to the SAFE Circular 13 and other laws and
regulations relating to foreign exchange, when setting up a new foreign invested enterprise, the foreign invested enterprise shall register
with the bank located at its registered place after obtaining the business license, and if there is any change in capital or other changes
relating to the basic information of the foreign-invested enterprise, including without limitation any increase in its registered capital
or total investment, the foreign invested enterprise must register such changes with the bank located at its registered place after obtaining
approval from or completing the filing with competent authorities. Pursuant to the relevant foreign exchange laws and regulations, the
above-mentioned foreign exchange registration with the banks will typically take less than four weeks upon the acceptance of the registration
application.

According to the Foreign Investment Law, Measures
for Reporting of Information on Foreign Investment, promulgated by MOFCOM, and State Administration for Market Regulation, or the SAMR
on December 30, 2019 and became effective on January 1, 2020, the Administrative Rules on the Company Registration, which was promulgated
by the State Council on June 24, 1994, became effective on July 1, 199