Shenzhen business incorporation (EJV) refers to register an equity joint venture in Shenzhen. If you want to invest in China, you don't just turn to the relevant government departments for certificates and formalities, you turn to Tannet as well. At Tannet, you will be provided with tailor-made service that not only suits your need but also meets your satisfaction.
I. OVERVIEW OF SHENZHEN
Shenzhen is the best place to do businesses in China. Situated in the Southern China, Shenzhen is the first Special Economic Zone in mainland since China has carried out reform and open-door policy 34 years ago. Shenzhen has an area of 953 square km’s and a population of more than 10 million. Shenzhen is a better city both for living and working over other major cities in China as it is recognized as the youngest and fastest growing city nationwide and worldwide. In Shenzhen, you can enjoy sound infrastructure and intensive industrial chain for manufacturing, trading and value investment. Since Shenzhen is bordering Hong Kong, it is also an ideal place for you to benefit from the “one country, two systems” policy.
II. THE CONCEPT OF EJV
The Sino-Foreign Equity Joint Venture is the enterprise that foreign enterprise and other economic organizations or individuals (hereinafter referred to as “foreign joint ventures”) to establish equity joint venture together with Chinese companies, enterprise and other economic organizations (hereinafter referred to as “Chinese joint ventures”) within the territory of the People's Republic of China, on the principle of equality and subject to approval by the Chinese Government. Both parties of the venture shall share the profits, risks and losses in proportion to their contributions to the registered capital.
III. COMPANY NAME
The Shenzhen government has a name format for anyone who wants to setup a EJV in China, the format is: Shenzhen + trade name + business scope+ limited. In China, only Chinese company names are officially used, while English names are for reference only. Any names are subject to the approval of relevant authority.
IV. SHAREHOLDER, DIRECTOR, MONITOR AND LEGAL REPRESENTATIIVE
A shareholder could be acted by legal person( foreign company) or natural person (individual), a director or a monitor could be acted by foreign person or Chinese person. A monitor is appointed to supervise the company’s operation and management. A legal Representative is a person in charge of corporate operation and management and development, responsible for all the legal affairs arising from the business running, the position could also be held by non-shareholder or non-director.
V. BUSINESS SCOPE
One of the most important issues is to define the business activities of the EJV. Business scope is narrowly defined based on many factors, such as trade names, registered capital and business scope. EJV can only conduct business within its approved business scope on the business license. Amending the business scope need further application and approval if the name reserve is not successful. For some sectors such as education, logistics, medicine and food industries, pre-approval license is needed before we enter into normal processes.
VI. REGISTERED AND PAID-UP CAPITALS
In China, the registered capital is different from varied situations and sectors. For the manufacturing enterprise, the registered capital of RMB 1 million or above is usually required. for the trading and wholesaling RMB500,000 or above; for retailing, as low as RMB300,000; for the service sectors, such as consultancy, technology, market research and development, the registered capital is around RMB100, 000 or above; for domestic companies, as low as RMB30,000.
The EJV requires that the invest percentage from foreign investor can not be less than 25% of the registered capital. The capital to be subscribed in lump sum as contemplated in the Articles of Association could be paid up with in 10 years from the date of issue of Business License. But if you need to apply for visa, the capital shall be paid up at least 50% firstly while the following could be paid up in the following 10 years.
VII. PREFERENTIAL POLICIES FOR EJV in SHENZHEN
Most of the preferential policies have been abolished since January 1, 2008, but for some sectors preferential policies still remain there, such as hi-tech or environmental protection sectors. Contact TANNET for more information at 86-755-82143422.
VIII. TANNET SERVICE PROCEDURE
Step1: let clients fill out the application form (sign the agreement);
Step2: Confirm the company name, business scope, registered capital and company shares;
Step3: Check the required documents for the clients;
Step4: Pay the services;
Step5: Prepare for the statutory documents for the investors to sign personally;
Step6: Forward documents to related government departments;
Step7: Keep clients informed of processing;
Step8: Finish processing in 40-50 working days;
Step9: Collect the documents and items and settle the balance if any.
IX. GORVERNMENT PROCESSING PROCEDURE
Step 1: Checking the company name with local Company Registry;
Step 2: Achieving an approval from the Fire and Environment Bureau for manufacturing sector;
Step 3: Pre-approval for some special sectors;
Step 4: Go to the Science, Industry, Trade and Information Technology Commission (SITIC) for certificate of approval ;
Step 5: Apply for the business license from MSA;
Step 6: Apply for stamps from the Public Security Bureau;
Step 7: Open the saving account with the bank (current account could be opened later;
Step 8: Apply for the Import & Export registration license from local Customs (if needed).
X. DOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES
Part one, documents needed to be prepared from abroad as follows
1. Copy of the business license or certificate of incorporation of foreign company;
2. The original and copy of identification documents (ID card, passport) of legal representative, and eight color photos;
3. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version;
4. Lawyer’s legalization or notarization which should be endorsed by local China Embassy or Consulate.
Part two, documents needed to be prepared from Shenzhen as follows
1. Copy of the business license or certificate of incorporation of Chinese company;
2. Latest annual audit report from Chinese company if it has been set up for more than one year;
3. One proposed name (in Chinese), and provide two or more alternative names in case the first name is not available;
4. Detailed information about the business scope and intended registered capital;
5. Detailed information and valid certificate of legal representative, director, monitor, manager;
6. The lease of commercial office between lessor and lessee needed to be endorsed by the Housing Management Authority. The lessee should be acted by shareholders, directors, legal representative, monitors or manager. The area required is no less than 30 ㎡ and for commercial use only with more than one year’s rent.
XI. DOCUMENTS REQUIRED FOR THE MANUFACTURING ENTERPRISES
Item 1 - 9 the same as above
10. Manufacturing address: house property certificate or the lease of industrial workshop (two original copies of lease with signature and endorsed by Housing Management Authority. The area is required no less than 200㎡ and for manufacturing use only with more than one year’s rent.)
11. Project reports are necessary for the approval by the relevant government department, such as, business service, environmental and fire departments. The safety standard of manufacturing area should reach the required standard set out by the Fire Department and Environmental Protection Department.
XII. DOCUMENTS REQUIRED FOR THE FOREIGN INDIVIDUALS’ ENTERPRISES
1. Original document & copy of identification documents (ID card, passport) of Chinese company's legal representative, directors, monitors and managers;
2. Local lawyer's legalization or notarization of the investor’s passport endorsed by the Chinese embassy or consulate in the investor’s country;
3. Eight color photos of the legal representative;
4. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version;
The documents needed to be prepared from Shenzhen are the same one as above for trading enterprises.
XIII. TANNET SERVICES
TANNET provides one-stop and tailor-made services for foreign companies which would like to set up WFOE in Shenzhen China.
TANNET package services include: 3 copies of Approval document; 2 copies of original articles of association signed by members of the Board and with company chop; Both original and duplicate copy of certificate of approval; Both original and duplicate copy of business license; 4 chops for different use; Seal carving registration card;
XIV. FOLLOW-UP SERVICES
TANNET can provide a series of follow-up services to customers, such as bank account opening, CPA report, bookkeeping, auditing, monthly tax return and tax layout, annual return services, financial planning and China market study, Other services include domain name registration, web page design, website promotion, China trademark registration, Work Permit, Residence Permit, etc.
XV. PROCESSING TIME NEEDED
For manufacturing enterprise: it takes 60-70 working days to finish the processing before we get required documents ready, especially the approval papers from the fire service department & human environment committee.
For the trading and service enterprise: it takes 40-50 working days to finish the processing before we get required documents ready.
XVI. TANNET ADVANTAGES
1. TANNET has established a global service system with 38 branches and 3000 cooperators worldwide, as well as in excess of 20,000 reliant clients globally. You can find one TANNET always beside you.
2. TANNET is staffed with a strong professional team of lawyers, accountants, engineers, designers and consultants providing tailor-made and all-in-one service.
3. There is a B2B business platform available for the international buyers and sellers of SMEs, www.ono-bbb.com.
4. TANNET maintains good partnership with international banks and financial institutes. TANNET also provide PIPO service.
5. TANNET is in conformity with the standard of ISO9001/2008 which means our service quality is guaranteed.
XVII IMPORTANT HINTS
1. Because of language difference, all the documents submitted to the Chinese government should be translated into Chinese and endorsed by the appointed translation agency.
2. TANNET is responsible to inform the clients for the collection of the company kit at the designated office. If the clients fails to collect the company kit within the mandatory three month period without reasonable
excuse, the client will be regarded as forfeiting the right to the registered company, TANNET can dispose the company as it wishes.
3. Make sure to get the formal invoice from the lessor after office leasing is done.
4. The follow-up business services are not included in the service package, and are subject to further charge according to the clients’ requirements.
XVIII CONTACT US
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.
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