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There is an irresistible trend for foreigners to register a joint venture in Shanghai, where boasts enormous opportunities for commerce. There exist two types of Joint Ventures - Equity Joint Ventures and Cooperative Joint Ventures. This article is to introduce the equity joint venture for your reference.
Introduction of Shanghai Equity Joint Venture
First, it is necessary to clarify that equity joint ventures must operate in the form of a Limited Liability Company, which means that the personal wealth and property of the actual individuals who are responsible for the company are shielded from corporate loss. The most significant difference between Equity Joint Ventures and Cooperative Joint Ventures is the allocation of profits. In equity joint ventures, profits must be allocated according to the ratio of the capital contributions made by the partners.
Equity joint ventures are the preferred investment vehicle for most manufacturing Joint Ventures. This being said, potential investors still must be clear about their purpose before deciding which form of Joint Venture they will use.
Advantages for Shanghai Equity Joint Venture Registration
1.Sharing resources and complementation of advantages can be achieved with equity joint venture, giving full play of the network and the famous brand already established by the Chinese enterprise, as well as enter into the Chinese market in a smooth manner;
2. Utilizing the geographic advantage of the Chinese enterprise for reasonable and lawful reduction of various fiscal charges and large reduction of operating cost;
3. Entitled to enjoy foreign investor favourable policies;
Required documents for Shanghai Equity Joint Venture application
1. Business registration documents of all parties to the joint venture;
2. The foreign partner's bank reference letter;
3. Real estate rights certificate or office lease contract;
4. The curriculum vitae and ID card of the legal representative;
5. The ID cards of individual shareholders and directors;
6. The feasibility study report of the proposed incorporation;
7. The contract and articles of association of the joint venture;
Above are some info about Shanghai equity joint venture registration, there are more info about the registration. We specializes in Shanghai equity joint venture registration, having such experience for years. We are a trusted, experienced and leading company for Shanghai company registration, and other services like opening of the bank account, work visa application, booking and accounting.
Please feel free to contact us for Shanghai equity joint venture registration and other services in your business operation, we are glad to offer our professional services.
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