Yangtze River Delta JV Formation
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China company information: Yangtze River Delta China JV formation is also called Yangtze River Delta China JV setup, Yangtze River Delta China JV registration, Yangtze River Delta China JV incorporation and Yangtze River Delta China JV establishment.
A Joint venture is a company set up and invested by Sino and foreign investors. It effectively uses the advantages of local enterprises.
Yangtze River Delta China JV Formation-Ongoing Formalities for A Joint Venture
Books of account must be set up within 15 days of approval of registration, and must be kept in the Chinese language. Audited accounts must be prepared by a domestic accounting firm on an annual basis which must be submitted to the tax authority. These are not publicly available.The JV's Business License and Enterprise Code Certificate must be renewed annually. Renewal applications must be submitted one month before the date of expiry.Remittances overseas will almost certainly be subject to foreign exchange controls, and specific permission will probably have to be obtained on every occasion, although this process can very often be administered by local banks. Many types of overseas remittance incur withholding tax.If a JV ceases operations in China it must apply for de-registration and return its tax certificate to the tax authorities.
Yangtze River Delta China JV Formation-Employing Staff for A Joint Venture
Under Chinese law a JV may employ both Chinese and foreign workers. Individual labor contracts are required and must be submitted for approval to the local labor bureau.The contract, which needless to say must be in Chinese, must include at least a minimum seven clauses as prescribed by Article 19 of the Labor Act, and must follow a format prescribed by the local labor administration.
PRC labor law permits the termination of a direct employment on 30 days' notice, but if there is no demonstrable cause, there is a definite possibility of legal action. For this reason it may be better in some circumstances to recruit Chinese workers through an official 'labor service' office since there is no direct legal relationship with the employees. For Representative Offices it is obligatory to hire staff in this way, but for WFOEs and JVs it is optional.
Yangtze River Delta China JV Formation-Taxation of A Joint Venture
There is a great variety of different taxes in China, and a JV may have to file various different types of tax return, monthly, quarterly or annually, covering Enterprise Income Tax, Value Added Tax, Business Tax, Consumption Tax, Stamp Duty, Land Appreciation Tax, Withholding Tax (on foreign remittances), and, if there are employees, Income Tax and social security contributions, which are withheld from pay on a 'PAYE' basis.
The headline rate of taxation for a JV on its profits is 25%, the same as for Chinese-owned companies since 2008. Some JVs may be able to take advantage of a 15% tax rate if they have successfully 'grandfathered' their previous status; and there are regional and national incentive schemes in particular sectors which allow for lower rates.
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