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Sino-foreign Joint Venture |
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1、What is a sino-foreign joint venture?
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| Sino-foreign JV, known as equity JV is a joint venture between a Chinese and a foreign company or economic organization within the territory of China.The JV parties agree to create, for a finite time, a new entity and new assets by contributing equity. They then share in the revenues, expenses, and assets and control of the enterprise. Generally speaking, investment the foreign party accounts for should be no less than 25% of the total investment. |
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What are features of a sino-foreign joint venture? |
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One of the JV parties is a China-based enterprise or economic organization, and the other is a foreign-based enterprise, economic organization or individual. |
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As a sino-foreign JV is established in P. R. China, it is restricted by laws and regulations of P. R. China. |
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It is a Limited Liability Company. |
| (4)
JV parties share in the revenues, expenses, and assets and control of the enterprise. |
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Operation Flow Chart |
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Sign up Contract-Client Provides Documents-SFERA Runs for All Certificates-SFERA Turns over Certificates to Client |
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Documents Required |
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| The foreign party provides: |
1、2 original copies of investor’s business operation certificate (or passport of individual investor )verified by local embassy |
2、2 original copies of investor’s bank statement/credit report |
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| The Chinese party provides: |
| 1、4 copies of investor’s business license with official seal |
| 2、3 copies of tax registration certificate and 1 copy of legal person’s ID card |
| 3、2 copies of audit report of investor’s net asset. |
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| Other documents to be provided: |
| 1 copy of Legal person's resume and 2 ID photos; |
| 1 copy of members of board of directors of the JV to be established; |
| 2 original copies of leasing contract and 2 copies of property certificate with the property owner's seal. |
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Client should also provide the following information: |
| 1、at least 5 candidate company names |
| 2、operation duration |
| 3、registered capital number |
| 4、description on board of director |
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| Duration |
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| Name Verification: 5 working days |
| Name Approval: 10 working days |
| Approval Certificate: 5 working days |
| Business License: 10 working days |
| Seal Carving: 1 working day |
| Organization Code Certificate:1 working day |
| Foreign Exchange Registration Certificate: 1 working day |
| Statistical Registration: 1 working day |
| Tax Registration: 10 working days |
| Open Bank Account (including foreign exchange, RMB and taxation accounts): 7 working days |
| Customs Clearance: 20 working days |
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| The above 11 steps usually take around 71 working days, which may differ due to governmental efficiency. |
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| Registration address is provided by SFERA. |
