Sino-foreign Joint Venture Registration

详情

Definition of Joint Venture
Chinese-foreign equity joint ventures a legal entity formed by Chinese investors and foreign investors, is a business arrangement in which the participants create a new business entity，share investment and operation expenses, management responsibilities, and profits and losses. Chinese investor should be an establish company.
 
Company Name
Company name of     JV consists of four parts which are administrative division, name, Industry expression and limited. Your company name must be unique in the same industry and administrative division .Company name is related to register capital and business scope. For some sectors such as education, logistics, medicine and food industries, a special pre-approved license is needed. Only with *0 million, the word Guangdong can be registered. If the word China is within the company name, it is required to be pre-approved by SAIC (State Administration for Industry and Commerce).
 
Business Scope
One of the most important issues in JV application is business scope. Business scope needs to be defined and the JV can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval.
 
Registered Capital and Paid-Up Capital
Registered capital is the amount that its required to run the business until it can break even - the 'minimum registered capital' is a guideline only. The amount of registered capital needed depends on factors like industry, scope of business and location. Generally speaking, for manufacturing and trading enterprise, the registered capital is required RMB 1 million or above. For service enterprises, such as consultancy, technology, market research and development, the registered capital is usually required RMB **0, **0 or above. Once the business license is issued, *5% of the registered capital should be paid up during 3 months, with the balance being remitted within 2 years. All of the registered capital can be paid in one time or several times, fewer times, fewer capital verification fees are needed.
 
Shareholder, Legal Representative, Supervisor, Director and Manager

1. Foreign shareholder could be a nature person (foreign individual) or a legal entity (foreign company); Chinese shareholder should be an establish company.
2. The legal representative represents the interests of the enterprise as a legal person，exercises legal right in accordance with the will of the enterprise. An enterprise as a legal person endows the legal representative with authority, assumes civil liability for the normal activities of legal representative.
3. Supervisors duty is that check the companys financial condition; supervise executives behavior of performing his duties, propose suggestions on dismissing any director or senior manager whose behavior is contrary to laws and regulations, articles of incorporation or     shareholder meeting resolution, etc.

1. Name registration with Guangzhou Administrative Bureau of Industry and Commerce
2. Approval application from the Fire and Environment Bureau for manufacturing industry
3. Pre-approval for some special industries
4. Certificate of Approval issued by Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipality
5. Business License issued by Guangzhou Administrative Bureau of Industry and Commerce (GZABIC).
6. Apply for stamps with the Public Security Bureau
7. Organization Code License issued by Quality and Technical Supervision Bureau
8. Tax Certificates issued by National & Local Tax Bureau
9. Foreign Exchange Registration Card issued by State Administration of Foreign Exchange (SAFE)