China joint venture incorporation service
Hotline: 86-755-82143348, Email:amyhuang@citilinkia.com
What is China IV registration ? -- Definition of Joint Venture Company
Chinese-foreign equity joint ventures a legal entity formed by Chinese investors and foreign investors, is a business arrangement in which the participants create a new business entity，share investment and operation expenses, management responsibilities, and profits and losses. Chinese investor should be an establish company.
Most important things for China JV registration:
Company Name
Business Scope
Registered Capital and Paid-Up Capital
Shareholder, Legal Representative, Supervisor, Director and Manager
Advantages for China JV registration :
The use of local partner’s existing workforce and facilities
Existing channels for sales and distribution
Use of a partner’s network to build good relationships, avoid red tape and other bureaucratic complexities
Entry into industrial sectors which exclude wholly foreign-owned investment
The JV model presents a variety of options for management and financial structures broadly divided into the following two groups.
An Equity Joint Venture (EJV) is an enterprise created with capital investments from both foreign entities and domestic companies, where profits are distributed according to the ratio of contributions. A minimum of 25% of the investment must come from the foreign partner. An EJV is a limited liability company, holding an independent legal identity.EJVs must have a two-tiered management structure made up of a board of directors and a management team (general manager and deputies) that is contractually appointed and legally responsible for the daily operations of the company. The EJV structure is much more rigid than that of the CJV, particularly with respect to profit sharing.
A Cooperative Joint Venture (CJV) is similar in form but more flexible than an EJV. CJV is an enterprise created with capital investment from both foreign entities and domestic companies, where profits are distributed between the investors in a proportion that may differ from the proportionate ownership interest of each investor. Additionally, the CJV structure can allow for the recovery of the foreign partner’s capital to be accelerated, though new regulations make this difficult to achieve. CJV was a more common model in the past, when Chinese partners supplied land and labour, while the foreign partner supplied technology and capital. A CJV can be structured as a limited liability company or a non-legal person (similar to a partnership formed by contract). Where established as a non-legal person, the liabilities of the CJV flow through to the investors of the CJV.
Contact Us
If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143348, or emailing to amyhuang@citilinkia.com.