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China FICE Registration Service
Hotline: 86-755-82143422 Email: anitayao@citilinkia.com
Currently, the Measures only permit foreign companies and enterprises to set up with Chinese companies and enterprises Chinese-foreign equity and contractual joint venture commercial enterprises in China. Wholly foreign-invested commercial enterprises are not allowed yet. Equity and contractual joint venture commercial enterprises should meet the following requirements:
1) Compliance with the relevant Chinese laws, statutes and regulations;
2) Compliance with the commercial development plan of the locale city;
The registered capital of the joint ventures engaged in retail business should be no less than 50 million yuan, and for central and western regions, no less than 30 million yuan. The registered capital of the joint ventures engaged in wholesale business should be no less than 80 million yuan, and for central and western regions, no less than 60 million yuan.
For equity and contractual joint venture commercial enterprises operating in the form of more than three chain stores (excluding neighborhood, specialized and exclusive-right stores), the proportion of the Chinese parties' investment should reach a minimum of 51 percent. For chain equity and contractual joint venture commercial enterprises which record a good performance, whose foreign joint ventures have purchased Chinese products in large quantities, and which can help expand the export of Chinese products through the international distribution channels of their foreign joint ventures, the foreign joint ventures involved are allowed to hold a controlling share upon approval by the State Council.
For equity and contractual joint venture commercial enterprises with three or fewer chain stores and neighborhood, specialized and exclusive-right chain stores, the Chinese joint ventures should own no less than 35 percent of the total investment.
For wholesale equity and contractual joint venture commercial enterprises (including concurrent retail and wholesale businesses), the Chinese joint ventures should own more than 51 percent of the total investment.
Branches of equity and contractual joint venture commercial enterprises are confined to the form of chain stores directly invested and operated by the Chinese and foreign parties. Other forms, such as free and franchised chain operations, are not allowed for the time being.
The period of operation must be less than 30 years, and for central and western regions, less than 40 years.Foreign joint ventures who sign contracts with equity and contractual joint venture commercial enterprises on the use of trademarks and names or technology transfer, the total mount of relevant charges drawn by the foreign joint ventures cannot exceed 0.3 percent of the current year sales value (excluding value-added tax) of the commercial enterprises, and the withdrawal period cannot exceed 10 years.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com