China JV Formation Service
Hotline: 86-755-82148419, Email:susiehu@citilinkia.com
A Joint Venture is a partnership between a Chinese and an overseas company. There are two types of Joint Ventures:
1. An Equity Joint Venture (EJV): This is a form of Chinese Limited Liability Company (LLC) between a Chinese and a foreign party, and is therefore a separate legal entity. Each participant contributes to the venture in financial terms by way of an investment of capital and therefore has a stake in the business. This is similar to the holding of shares in a limited company.
2. A Cooperative Joint Venture (CJV): A more flexible way of operation with a Chinese partner is a Cooperative Joint Venture. This legal framework allows individual agreements such as profit sharing, which need not be restricted to the equity contributions. It differs mainly with the Equity Joint Venture in that the foreign investor may repatriate his original investment prior to the expiration of the Joint Venture.
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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 86-755-82143512, or emailing to anitayao@citilinkia.com.