China JV Registration
Hotline: 86-755-82143422, Email:anitayao@citilinkia.com
Joint Venture Registration is a business arrangement in which the participants create a new business entity or official contractual relationship and share investment and operation expenses, management responsibilities, and profits and losses.
Joint Venture Registration-Pre-Licensing of China Joint Venture Registration
1) A letter of intent or memorandum of understanding must be written and signed by all partners.
2) Submit JV name for approval by the local Administration for Industry and Commerce (AIC);
3) AIC requires one name and two alternates to be submitted.
4) A JV contract and articles of association must be written and signed by all partners.
5) Where the JV will be acquiring land or other fixed assets, or where the capital investment in the JV will be significant, pre-approval from the National Development and Reform Commission (“NDRC”) may be required.
6) Certain other government ministries may need to be consulted and to provide approval where the JV is to do business in a relatively regulated industry (for example health or education) or where the collateral impact of the JV’s proposed business activities require review (for example pollution, heavy energy usage).
7) Obtain a certificate of approval for the establishment of the JV from the Municipal Commission of Commerce (MOC).
Joint Venture Registration-Internal Supervision of China Joint Venture Registration
JVs are also required to appoint at least one individual (of any nationality and residency) as the supervisor of the JV. The supervisor’s primary role is to monitor the affairs of the JV and the directors of the JV, and to report any irregularities to the board of directors of the JV and to the investor(s) of the JV.
Joint Venture Registration-Office Lease of China Joint Venture Registration
Before beginning the application process investors must lease office space for their future business. It is recommended that a clause be added to the lease voiding the contract without penalty should the JV application be rejected. Office relocation requires a tax clearance declaration report, essentially an audit of the company.
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.