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Joint Venture (JV) in Shenyang

Xiamen Tax Service
Hotline: 86-755-82143422,

Joint Venture (JV)in Shenyang is the enterprise that foreign companies, enterprise and other economic organizations or individuals (hereinafter referred to as “foreign investors”) to establish equity joint venture together with Chinese companies, enterprise and other economic organizations (hereinafter referred to as “Chinese partners”) 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. Remarkably, Chinese individuals are not qualified to invest in the JV. On the other hand, a minimum of 25% of the capital must be contributed by the foreign partner(s).

There is no minimum share-holding percentage of investment for the Chinese partner(s). Share holdings in a joint venture are usually non-negotiable and cannot be transferred without approval from the Chinese government. Similarly, investors are restricted from withdrawing registered capital during the existence of the joint venture contract.

Joint Venture (JV)in Shenyang-Registration Procedures
1. Negotiation & Signing of Letter of Intent;
2. Submit Project Proposal;
3. Feasibility Report;
4. Government Review & Approval;
5. Signing of Contract & Articles of Association;
6. Obtain Approval Certification from Suzhou Foreign Economic and Trade Commission;
7. Register with the Shanghai Administration for Industry and Commerce;
8. Establishment.

Joint Venture (JV)in Shenyang-Choose Name 
When foreign investors establish company together with Chinese cooperators, how to name their company is one of the main issues. In Shenyang, only company names written by Chinese characters are accepted by authorities, while the names in English characters are used to reference names only. Meanwhile the Chinese Company Registry Department cannot accept every name both in Chinese and English, thus naming your company must need a careful consideration.

In Shenyang 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 a company name contains the word “Shenyang”, must be declared through a pre-approval process in Shenyang Business Department.

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