Registration in China
How to expand your business to China by setting up China Joint Venture Company.
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.
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.
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 as outlined in the PRC Foreign Investment Industrial Guidance Catalogue.
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.
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 JV 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.
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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.
What is needed to Start a Joint Venture in China
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