Huizhou EJV Formation
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Sino-Foreign EJV is also called equity joint venture. It is a corporation jointly invested and incorporated by foreign companies, other economic organizations or persons and Chinese companies or other economic organizations, which is featured by joint contribution, joint operation of all parties to the joint venture, and sharing of risk, profits and losses in proportion to their respective contributions towards the registered capital.
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Huizhou EJV Formation is also called Huizhou EJV setup, Huizhou EJV registration, Huizhou EJV incorporation and Huizhou EJV establishment.
Huizhou EJV Formation-Advantages for Huizhou EJV
1. Sharing resources and complementation of advantages, giving full play of the network and the famous brand already established by the Chinese enterprise, as well as smooth entry into the Chinese market
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 foreign investor preferences
Huizhou EJV Formation-Forms of Investment and Terms of Huizhou EJV
1. Fully paid at one time: All parties to the joint venture shall pay up the capital within 6 months from the date of acquiring the business license
2. By installments: All parties to the joint venture shall pay 15% of their respective subscription in the first installment within 3 months from the business license being granted, and pay up the remainder within the period as required; otherwise, it shall be deemed to be automatically winding up.
Huizhou EJV Formation-Ratio of Investments for Huizhou EJV
The Law on Enterprises with Foreign Investment requires the foreign investor to contribute not less than 25% of the registered capital of the joint venture, but without a top limit.
Huizhou EJV Formation-Required documents for Huizhou EJV 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
Huizhou EJV Formation-Tax Preferences for Huizhou EJV
1. Value-added Tax
1) The foreign joint venture, being a general taxpayer, is entitled to the tax "Exemption, Credit and Tax Rebate" policies on the exported goods produced by itself, where:shall be exempt from value-added tax production and sales payable on the export; "Tax Rebate" shall be the rebate of the remaining tax after crediting
2) General goods shall be sold in 100% domestic sales
3) The foreign joint venture productive enterprise, being a small-scale taxpayer, is entitled to VAT exemption but no refund on its export products
4) Home equipment purchased in the aggregate investment, if falling within the tax-free catalog, shall be entitled to full refund of the value-added tax on the purchase of the home equipment
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143410, 86-755-82143512, or emailing to 2355725105@qq.com