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Sino-foreign Equity and Contractual JV Enterprises in Guangzhou

Sino-foreign Equity and Contractual JV Enterprises in Guangzhou-Application Procedures

1.Approval of Project Application Reports 
Upon reaching agreement by the parties to an equity or contractual JV after negotiation, the Chinese party should submit the project application report to the local foreign trade and economic cooperation department. For projects under the encouraged  and  permitted  categories  with  an investment exceeding US$100 million and projects under the restricted category with an investment exceeding US$50 million, the report is examined by the provincial development and reform committee before submitting to the National Development and Reform Commission for approval.  For projects requiring the opinions of the relevant industry department, the approval organ must send a letter of request for opinions to the industry department concerned together with the necessary documents. The project application report should include: Basic facts about the project, technology and technical processes, demand on energy and other resources, environmental impact assessment, prices of public goods or services involved, means of capital contribution and financing plans, equipment to be imported and amounts involved. Documents required: Enterprise registration certificates of the Chinese and foreign investors, credit certificates, letter of investment intent, and environmental impact assessment report issued by the environmental protection administration.

2. JV-Approval of Contract and Articles of Association
The contract, articles of association and other relevant legal documents for establishing the JV signed by the parties are submitted by the Chinese party to the local foreign trade and economic cooperation department for approval. Documents required: Application documents to the competent Chinese  authorities;  feasibility  study  report  and  approval documents for the project; application for registration of the name of the enterprise approved by the provincial or municipal administration for industry and commerce; written comments on the project by various government departments such as environmental  protection,  fire  services,  health  and  land administration; business licences of the parties concerned and certificates of their legal representatives; contract and articles of association duly signed by the legal representatives of the JV parties; and list of board of directors.

3.JV-Application for Approval Certificate
After the contract and articles of association are approved, the Chinese party should apply to the provincial or municipal foreign trade and economic cooperation department for an approval certificate. Documents required: The project application, feasibility study report, contract, articles of association and list of directors approved by the respective approving authorities.

Upon collection of the approval certificate, an application for business licence should be filed  with the provincial or municipal administration for industry and commerce within 30 days. Subsequently, the JV should complete such procedures as applying for official seal and enterprise code, opening bank account, and registering for tax payment and customs declaration with the local public security, technical supervision, taxation, Customs, finance, foreign exchange administration, banking, insurance and commodity inspection departments.

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