Xiamen joint venture incorporation is a good choice for foreign investors who want to invest in China. Xiamen, as an important economic city Fujian Province, locates in the eastern coastal region of China. It enjoys natural advantages in developing its economy. It on the west coast of the Taiwan Straits, and is separated from Quemoy island only by a narrow stripe of water. Xiamen is a traditional trading port in southeast China and a famous tourist coastal city as well. Xiamen has a diverse and well-developed economy.
Joint Venture (JV) is a Limited liability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise.
JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc. For a long time, setting up a Joint Venture was the only option for foreign investors wishing to enter the Chinese market. A Joint Venture consists of a Chinese and a foreign investor.
Types of Joint Venture
In China, there are two different kinds of Joint Ventures exist:
1. Equity Joint Ventures (EJVs)
An Equity Joint Venture is a company with limited liability. Parties of the Joint Venture may include one or several Chinese entities, and one or more foreign companies or individuals. In an Equity Joint Venture at least 25% of the shares have to be held by a foreign investor. It is a limited liability company and will be managed by a Board of Directors, whose members are foreign or Chinese.
2. Cooperative Joint Ventures (CJVs)
A Cooperative Joint Venture can be found as a limited liability company but it is not necessary to set it up as a new legal entity, unless the cooperative contract stipulates otherwise. A cooperative Joint Venture (CJV) can be established in a format similar to a partnership where both parties incur unlimited liabilities. For CJVs there is no minimum capital required for foreign investors. Chinese and foreign investors can decide on the amount of capital injected by each investor and decide how to distribute profits. Investors may contribute other non-capital assets such as factories or land use rights.
General Procedures for JV Registration in Xiamen
Setting up a Joint Venture requires the help of an expert. This is a brief overview of the most important steps:
1. Name registration with State Administration of Industry and Commerce (SAIC);
2. Certificate of Approval of Joint Venture by Ministry Of Commerce or Foreign Economical Cooperation Bureau (MOFEC);
3. Apply for Business License with SAIC;
4. Chops made by Public Security Bureau (PSB);
5. Organization Code License by Technical Supervision Bureau (TSB);
6. Tax Certificate by Tax Bureau;
7. Registration and Approval with State Administration of Foreign Exchange (SAFE);
8. Open Foreign Currency and RMB bank account;
9. Inject Capital from investor’s overseas bank account;
10. Capital Verification Report by Certified Public Accountant (CPA);
11. Applying for Permanent Business License with SAIC;
12. Financial certificate Registration;
13. Statistics license Registration.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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