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Shenzhen Joint Venture Registration (JV)

Updated:2018-4-25 17:04:36    Source:www.tannet-group.comViews:401

Shenzhen Joint Venture (JV) refers to a business entity registered in Shenzhen by more than one Chinese legal entity with other foreign parties. Companies typically pursue joint ventures for one of four reasons: to access a new market, particularly emerging markets; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities.

Shenzhen Joint Venture Advantages
Shenzhen joint venture has become one of the most popular type of investment, thanks to its advantages over other types as below:
A. Taking advantage of local Chinese partners’ existing resources like facilities, workforce, relationships, distribution and sales channels;
B. Access to certain industries or sectors which have played an essential role in Chinese people’s livelihood and set quite limitations to Wholly Foreign-owned Enterprise (WFOE) like water, electricity, telecommunication and so on;
C. Avoid bureaucratic issues and red tape.

Shenzhen Joint Venture Registration Procedures
Shenzhen Joint Venture registration procedures have been much simplified, since the government authority has carried out some encouraging policies nowadays. You need to go through the general procedures:
A. Company name reservation with local Administration of Industry and Commerce (SAIC);
B. Certificate of Approval of Joint Venture by Ministry Of Commerce or Foreign Economical Cooperation Bureau (MOFEC);
C. Applying for Business License with SAIC;
D. Chops made by Public Security Bureau (PSB);
E. Bank account opening;
F. Any special licenses application if any, like import and export license, food business license.

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