Joint Venture
Registration in China
How to expand your business to China by setting up China Joint Venture Company.
China Joint Ventures
There are two main reasons to enter into a JV with a local partner:
1) When entering certain industries, it is required to have a local partner according to the restrictions in China
2) When a local partner can offer tangible benefits such as well-established distribution channels, government relations (locally known as guanxi) or other assets that would be relatively inefficient for the foreign investors to acquire on its own.
EASY TO IMPORT/EXPORT
Import goods to China to sell directly in the Chinese Market or Export products Worldwide
30 DAYS
The registration of a China Joint Venture takes about 30 working days to be done
NO REGISTERED CAPITAL
No Injected Registered Capital required
WHAT CAN A CHINA JOINT VENTURE COMPANY BE USED FOR?
Joint ventures are especially popular with businesses operating in different countries. In China its commonly considered as one of the best options to enter the Chinese market. To better explain, JV is a form of enterprise created through the partnership between foreign and Chinese investors. The joint venture partners share the profits, losses and management of the JV. Smaller businesses often want to access a larger partner’s resources, such as a strong distribution network, specialist employees and financial resources.
Take advantage of your local partner’s existing facilities and workforce.
Existing distribution and sales channels ready to start operations.
IT CONSULTING
The Chinese market is vast and is still in expansion. For that reason many companies rely on IT consulting firms to help them efficiently operate in the Chinese market.
IMPORT & EXPORT
China is the world’s Factory and Import and Export is one the largest markets. Import goods to China to sell directly in the Chinese Market or Export products Worldwide.
FOOD & BEVERAGE
The Food and Beverage (F&B) industry is growing rapidly in China. During the past decade the industry has grown at a rate of 30%. As a result of the increasing demand for new products and services, foreign entrepreneurs fell encouraged to enter the Chinese market.
MANUFACTURING IN CHINA
A Joint Venture Company can be used for expanding your sourcing platform and keeping direct control of logistics, sales channels, and local market strategies. Not only low cost production but also strategic location to improve sales performance all over Asia.
Joint Venture Types
Equity Joint Venture (EJV)
An EJV is a Chinese Limited Liability Company (LLC) shared between a Chinese and a foreign party. Each participant contributes to the venture in financial terms by way of an investment of capital and has a stake in the business. This is similar to the holding of shares in a limited liability company.
Cooperative Joint Venture (CJV):
A CJV offers a flexible way to conduct business with a Chinese partner. This legal framework allows individual agreements such as profit sharing, which need not be restricted to the equity contributions. It differs mainly with the Equity Joint Venture in that the foreign investor may repatriate his original investment before the expiration of the Joint Venture.
Depending on your business scope, we can advise you whether a Joint Venture is the best option for you. We will be glad to answer your questions and find the right solution for your company. Compared to registering a business in most Western countries, registering a business in China is challenging work filled with paperwork and bureaucratic red tape. It is time-consuming and challenging to properly complete the registration process without a qualified agency. Corporation China is a government licensed registration agency that provides business registration services. We offer practical solutions for corporate formation with our extensive knowledge and background, all while guaranteeing results for our clients.
TOTAL SUPPORT Services:
The ideal partner in a joint venture is one that has resources, skills and assets that complement your own. The joint venture has to work contractually, but there should also be a good fit between the cultures of the two organizations.
A good starting place is to assess the suitability of existing customers and suppliers with whom you already have a long-term relationship. You could also think about your competitors or other professional associates.
Before you consider signing up to a joint venture, it’s important to protect your own interests. This should include drawing up legal documents to protect your own trade secrets and finding out whether your potential partner holds intellectual property rights agreements. Also, it’s worth checking to see whether they have other agreements in place, either with their employees or consultants.
Whats Needed To Start Your Business In China
Whats Needed To START
1. Do your homework.
find out more about the market and if your services or products will do well in China
[ contact a company like Brand Asia that can help you with market research ]
2. Pick a location
Shanghai, Beijing, and Guangzhou are the major business and industrial centers. The type of business may require you set up in one of these cities. Shanghai counts for one-third of China’s GDP and also easy to find staff that speak good English
3. Choose a Chinese Company Structure
Before registering you need to decide what type of business entity to register. The most common for foreign Investment are Wholly Foreign Owned Enterprises (WOFE), Representative Offices (RO) and Joint Ventures
4. Develop a business plan.
A detailed business plan is crucial because once the government approves it, you will be able to operate only within the business scope, but that can also be changed if needed
Business Plan
5. Organize the necessary documents.
The documents you’ll need to register for a Company will vary from place to place but mostly is just a few passport and company information.
6. Trademark your intellectual property.
Intellectual property violations can be an issue for foreign investors in China.
Trademark is a first to serve the system and is a simple process
8. Open a Bank Account
Once your company is established, you will need to open a bank account and also apply for a tax invoice ( Fapioa) machine
9. Hire staff (if required)
Hiring staff in China might seem complex ,our Yingke HR Division can help
Documentation
SET UP AS AN INDIVIDUAL
- A scan of your passport
- A Personal Bank Reference Letter
- Choose a name for the your China WFOE
- Choose a location for the company in China
SET UP AS A HONGKONG COMPANY
- Notarized copy of Passport of Director and Company Registration Certificate
- Hong Kong Company Registration Certificate
- Hong Kong Company Bank Reference Letter
- The Hong Kong Company will then be the Holding Company for the WFOE We can set up a Hong Kong Company in about 5 days
SET UP AS A COMPANY
- A Passport Scan of the Director(s)
- A Certificate of Company incorporation
- A Company Bank Reference Letter – stating no bad record
- All Documents need to be notarized by the Chinese Embassy.
Bank Account
Opening a China Bank Account
Opening a China Bank Account is a post-licensing service. Corporation China has the knowledge to assist your company during the Bank Account Opening Process. We can Guarantee the China Bank account as we have a partnership with most of the top banks in China. The bank you chose is at your discretion but most of our clients have chosen Bank of China or HSBC. You may contact us for more information about opening a Bank Account and the required documentation must be provided to the Bank during the Process.
Are You Ready
To Start Your Business In China
Get a FREE Consultation with Corporation China lead Company formation experts
Grace Ma
Shangai District Office Manager Grace is an expertise are in Legal Consulting, Company Structure She speaks English, Shanghainese & Chinese
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