Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 112

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 112
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 Law
of the People’s Republic of China (the “ Foreign Investment Law”) was adopted by the National People’s Congress
on March 15, 2019, which became effective on January 1, 2020. On December 26, 2019, the State Council promulgated Regulation for Implementing
the Foreign Investment Law of the People’s Republic of China (the “ Regulation”), which became effective on January 1,
2020.

The Foreign Investment Law
and the Regulation apply the administrative system of pre-establishment national treatment plus negative list to foreign investment and
clarify the state shall develop a catalogue of industries for encouraging foreign investment to specify the industries, fields, and regions
where foreign investors are encouraged and directed to invest, which refers to the Catalogue of Industries for Guiding Foreign Investment
Industries (amended in 2020).

Regulations Relating to Wholly Foreign-owned
Enterprises

The Company Law of the People’s
Republic of China provides that companies established in the PRC may take the form of company of limited liability or company limited
by shares. Each company has the status of a legal person and owns its assets itself. Assets of a company may be used in full for the company’s
liability. The Company Law applies to foreign-invested companies unless relevant laws provide otherwise.

The Foreign Investment Law
replaced Law of the People’s Republic of China on Wholly Foreign-owned Enterprises. It stipulates that the PRC implements a system
of pre-establishment national treatment plus negative list for the administration of foreign investment. Foreign investors are not allowed
to invest in fields or sectors prohibited in the market access negative list for foreign investment. Foreign investors that intend to
invest in the fields subject to access restrictions stipulated in market access negative list for foreign investment shall satisfy the
conditions stipulated in such negative list. The PRC policies supporting enterprise development are equally applicable to foreign-invested
enterprises. The PRC does not impose expropriation on foreign investment. Under special circumstances, if it requires imposing expropriation
on foreign investment due to the need of public interest, expropriation shall be imposed according to legal procedures, and the foreign-invested
enterprises concerned shall receive fair and reasonable compensation. Foreign-invested enterprises can raise funds through public issuance
of stocks, corporate bonds and other securities in accordance with the law. Overall, the Foreign Investment Law establishes the clear
principle of applying national treatment to foreign-invested