Hainan joint venture registration is one of the legal forms for investors to set up businesses in Hainan. A Joint Venture is a business arrangement in which the participants create a new business entity with an official contractual relationship and share investment and operation expenses, management responsibilities, and profits and losses. In China, a JV is a form of enterprise created through the partnership between foreign and Chinese investors. The joint venture partners share the profits, losses and management of the JV.
Deciding what form of new corporate structure to undertake is crucial for Companies interested in entering the vast Chinese market. For some businesses, Wholly Foreign-Owned Enterprises (“WFOE”) may be the best choice, and for others, simply forming a representative office may be the ideal choice. But a joint Venture also has its own advantages.
Types of Joint Venture in China
1. Equity Joint Venture (EJV)
An EJV is a Chinese Limited Liability Company (LLC) shared between a Chinese and a foreign party. Each participant contributes to the venture in financial terms by way of an investment of capital and has a stake in the business. This is similar to the holding of shares in a limited liability company.
2. Cooperative Joint Venture (CJV)
A CJV offers a flexible way to conduct business with a Chinese partner. This legal framework allows individual agreements such as profit sharing, which need not be restricted to the equity contributions. It differs mainly with the Equity Joint Venture in that the foreign investor may repatriate his original investment before the expiration of the Joint Venture.
Advantages of a Joint Venture
(1) Foreign companies can invest in businesses that are restricted by the government to Chinese companies. Certain sectors are reserved only for Chinese entities or JVs.
(2) Chinese partner likely already has experience doing business in China.
(3) Ability to leverage Chinese partner’s “guanxi”, or connections, including those with the ruling party.
(4) There is no need to go through the procedures involved in forming a WFOE and later deregistration of WFOE or representative office.
(5) The Chinese partner can handle all application and registration matters on behalf of the JV.
(6) Access to Chinese partner workforce and facilities as well as sales/distribution channels.
(7) Potential to avoid or reduce red tape and bureaucratic hassles.
How to Set Up a Joint Venture in Hainan
Given that you entrust Tannet to handle the whole registration process, the following procedures will be involved:
(1) Fill out the application form (sign the agreement);
(2) Company name search & confirmation;
(3) Pay for the services;
(4) Submit the needed documents;
(5) Check the documents;
(6) Prepare for the statutory documents;
(7) Sign the documents personally, and then submit all the documents to the government;
(8) Proceed the registration process;
(9) Hand over all the company kit to clients;
(10) Sign the receipt.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512 or 86-755-82143181 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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