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China business setup

China Joint Venture(JV) Setup

China Joint Venture Setup is also called China Joint Venture formation, China Joint Venture registration, China Joint Venture incorporation and China Joint Venture establishment. 

The Sino-foreign joint venture is the enterprise that foreign companies, enterprise and other economic organizations or individuals (hereinafter referred to as “foreign joint ventures”) to establish equity joint venture together with Chinese companies, enterprise and other economic organizations (hereinafter referred to as “Chinese joint ventures”) within the territory of the People's Republic of China, on the principle of equality and subject to approval by the Chinese Government. Both parties to the venture shall share the profits, risks and losses in proportion to their contributions to the registered capital.

China Joint Venture Setup-Company name of JV in China
In China, only Chinese company names are officially used, while English company names are for reference only. NOT every name will be accepted by the Company Registry. And in China some sectors need special license, it is important for you to know the wording of a company name should be in conformity with the registered capital, such as with the words “investment” or “industrial” within a company name, the registered capital should more than RMB 100 millions, while “group’’ or “holding” more than RMB 50 millions.(The detailed information depends on the local stipulation) Your company name must be distinguished from the others registered company name before. If the word “china” within the company name, must do pre-approval in China Business Department.

China Joint Venture Setup-Registered and paid- up capital for China JV 
1. For the trading enterprises, the registered capitals are usually advised as much as 500,000RMB or above;
2. For the manufacturing enterprise, the registered capitals are usually required 1 million RMB or above;
3. For the company of consultancy, technology, market research and development, the registered capitals are usually required RMB100,000 or above;
All of the registered capital can be paid in one time; Nowadays from 2015, China central government has cancelled the requirements for the minimun registered capital to be paid up, thus the registered capital is not required to be paid up as before stipulated as 15% within 6 months of the issuing of the business license. It is allowed to be paid up within 5-10 years even 30 years; 

China Joint Venture Setup-Operating Procedure 
1. Entrusting Procedure
Fill in the application form→Entitle the company name→pay for the earnest money (50% of total)→submit the needed document→check the document→submit all the document to the government→inform the course→finished within the 30-50 working days→collect the document→pay the spare money

2. Customer Processing Procedure
Foreign investors director meeting resolution→Entitle the company name→Business scope confirmation→Registered capital confirmation→Shareholder confirmation→Appoint legal representative of Chinese company→Chinese office confirmation (consider fire and environment factors if needed)→Transact lawyer’s notarization and submit it to the authority dept to sign→Reference letter of bank→Entrust to transact→Inject the investment money to the capital account on behalf of investor→Capital verification→After-approval (if needed)

China Joint Venture Setup-After Services for China JV
TANNET can provide a series of after services to customers, such as open company basic bank account, open tax account, do accounting, annual return service, company alteration, financial planning and so on

China Joint Venture Setup-The Time Needed for setup 
1.For manufacturing enterprise: 30-50 working days will be finished. (Count the time after the approval of environment & fire and the detailed time depends on the operation type)
2. For the trading and service enterprise: 30-50 working days will be finished.(The detailed time depends on the operation type)

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If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website or , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to


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