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Time: 2008-7-1 Author: admin Source:

Joint Venture

Establish the three kinds of foreign-invested enterprises of China Mainland - the foreign capitals jointly operate Enterprise's manual

Registering the Chinese foreign capitals pool capital cooperative enterprise has a good business environment

With the opening and development of the hinterland, more and more enterprises reach the Hong Kong incorporated company abroad, regarded as and developed as the window of the overseas market. Then, utilize the company of overseas window to go to the hinterland to invest money in developing the three kinds of foreign-invested enterprises again, pattern on before form " factory under shop ", is it may raise image of enterprise , win the confidence of overseas travelling trader to do it in this way, can also enjoy the preferential policy of China . One kind in the cooperative joint venture is " with three kinds of capital ".


Overview of the joint ventures of Chinese and foreign enterprises
 
The Jonit 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 Hongkong dollars; The registered capital of overseas-funded enterprise can't be lower than 1 million Hongkong dollars, enterprises of bonded area can't be lower than 2 million Hongkong 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 Jonit 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 .

Chinese and foreign enterprise's cooperative 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 Jonit 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 a shareholders ). The overseas-funded enterprise of China takes shape on the basis of encouraging productive enterprises, because this kind of enterprise products regard exporting as the direction, and can introduce advanced technology . 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 or 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.
   Different from joint venture, the cooperative enterprise does not require the proportion of investment , allocation proportion of the profit , director to be taken the post as the proportion to be unanimous . The organizational form is a cooperative enterprise of limited company, need to establish the board of directors or the common board of trustee, determine to combine the enterprise's great affairs of management. If Chinese side appoints the President, is appointed the vice-president by the foreign side. The opposite is also true. Both investors agree contract terms of cooperative enterprise, after obtaining examination and approval of the related departments, the cooperative enterprise has been established. Relevant to establish procedure and overseas-funded enterprise establish procedure to be the same.

The advantages of Chinese-foreign cooperation , joint venture

From the angle that foreign businessman make the investment , set up advantage of overseas-funded enterprise as follows, 1, resource-sharing, have complementary advantages; 2, Have independent taking care of oneself and declaring right at the Customs , enjoy the favour in the equipment and goods imports and exports; 3, Enjoy three minus two and avoid the preferential policy; 4, Have the ability to launch the business formally , but needn't there are a great deal of restrictions like office; 5, Utilizing Chinese resources directly, it is very fast to start.  

Handle the file that foreign capitals joint-venture , cooperation need offering

1, 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 ;
3, Foreign businessman's investors' resolution of board of directors;
4, The passport copy of the legal representative, 2 photos, or Hong Kong ID card , entering the pass accurately;
5, 2 place lease contract originals;
6, Investor's company and the director's material, blue form return
7 , 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..
9, Enterprises register the original paper of letter of authority entrust

Handle the foreign capitals joint-venture , cooperative procedure

Sign the agreement- >>Pay the deposit- >>Sign the file - >>Hand over the necessary materials- >>Sign the file - >>Written instructions or comments of foreign capitals office - >>Written instructions or comments of environmental protection ->>Enterprises compose yard in advance- >>Industrial and commercial business license- >>National tax , land tax- >>Enterprises organize the code card (IC card)- >>Public security bureau seal - >>Basic account number of the bank- >>Handle the registration card of the foreign currency- >>Handle the registration card of the customs- >>It finishes 20~30 workdays

Service that you get

After finishing all formalities, you can get : The file of Foreign Economic Relations and Trade office of XX city (sets up ) / the other certificate of approval of Economic and Trade Commission / business license , copy / national tax , certificate reserved copy and duplicate of the land tax //National tax , land tax registration form /apply not scribing seal the registers / corporation by-law / environmental protection written instructions or comments of /organize code card of enterprise (IC card) /foreign currency registration card /have the basic bank account number / customs registration card / official seal , signet , chapter , the customs declaration chapter .

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