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Joint Ventures of Chinese and Foreign Enterprises

China Business Start-up Service
Hotline: 86-755-82143348,

Overview of the joint ventures of Chinese and foreign enterprises
The Joint Venture Law demands to invest in 25% that the foreign side invested the registered capital at least, does not generally have supreme upper limit to the investment which invests in the foreign side, unless relevant Chinese laws require Chinese side to have share of the minimum investment (such as the trade of limiting). The registered capital of Sino-foreign joint venture requires more than 1 million Hong Kong dollars; the registered capital of overseas-funded enterprise can't be lower than 1 million Hong Kong dollars, enterprises of bonded area can't be lower than 2 million Hong Kong dollars.

Both sides can invest one's own fund in cash, equipment, industrial property or other forms. General, Chinese side puts up cash, land development , foreign side of right to use the land put up cash , build goods and materials , science and technology , equipment. All investment must obtain approval, Chinese of related departments, is it register accounting teachers Chinese report that accounting firm provided of quality to have. Co. management enterprises of both parties of the joint venture. The board of directors is made up of three members at least; the board of directors has the right to determine to enterprise's great affairs. Both parties of the joint venture are responsible for the director's appointment together; decide the director's composition according to the proportion of investment of both parties of the joint venture. The Joint Venture Law of China stipulates, both parties of the joint venture can all elect the President, if one party takes the post as the President, another party can appoint the vice-president.

Joint ventures of Chinese and foreign enterprises overview
The cooperative enterprise is managed by “cooperative Enterprise Law in the People's Republic of China ", accorded with Chinese legal person's condition, the cooperative enterprise can obtain legal personality. The cooperative enterprise needn't possess legal personality either. Such as organizational form being limited company, the cooperative enterprise has all ownership to enterprise's assets, but the responsibility of both sides according to the stipulations of both sides' ratio between investments.

The joint venture is managed by “the Joint Venture Law of the People's Republic of China ", this law was published in 1979, revised newly in 2000. The foreign capitals proprietorship is totally by limited company of the foreign investment. It can register with the overseas legal person or the natural person (more than of shareholders). However, as China join WTO, this kind of situation changes to some extent, the overseas-funded enterprise of more service has been established, a lot of consultation management companies, software development Company and trading company (only restrain from in the bonded area ) produce in succession.

The all right cash of both investors and other forms provide funds. Investment form which the right to use the land, industrial property or other governments allow. The foreign side generally puts up cash, science and technology, equipment; Chinese side generally offers the land or the factory building. The two sides concerned can expire ownership after to one's own right, obligation, risk proportion, cooperation period among cooperative contract, carry on freedom discussing and regulation within the specific limits.

The File That Foreign Capitals Joint-Venture, Cooperation Needs
The copies of foreign businessman's investor's registration certificate and commercial card; 2, Two credibility certificate original papers of bank, showed the investor's credit state, needed to issue within 6 months, there is Chinese and English contrast ;
Foreign businessman's investors' resolution of board of directors;
The passport copy of the legal representative, 2 photos, or Hong Kong ID card , entering the pass accurately;
2 place lease contract originals;
Investor's company and the director's material, blue form return
President and directors appoint the book such as the anniversary of Hong Kong company. 8, Envision feasibility research reports of the Chinese company , the contracts of the rules , Chinese side and foreign side, such as exceeding a investor, the agreement that took during the investor, show the right , responsibility , ratio between investments of both sides, about discussing business affairs , solving the rule of the dispute ,etc..
Enterprises register the original paper of letter of authority entrust

About Joint ventures of Chinese and foreign enterprises registration please contact us
Guangzhou Tannet Address:Room2501-2502, 25/F, Unit C, Fengxing Building, No. 240, Tianhe Road, Tianhe District, Guangzhou
Guangzhou Tannet Tel:86-20-87550061
Guangzhou Tannet Website:
Guangzhou Tannet


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