Malaysia Hotline: +603- 2141 8908
A Joint
Venture (JV) is a business arrangement in which the participants create a new
business entity or official contractual relationship and share investment and
operation expenses, management responsibilities, and profits and losses.
Nanchang Joint Venture
Setup-Advantages
1.
Ability to formally carry on business rather than just a representative office
function;
2. Issue
invoices to their customers in RMB and receive RMB revenues. Convert RMB
profits to US dollars for remittance to their parent company outside.
3. Cheap
labor, which can lower your cost;
4.
Greater efficiency in its operations, management and future development.
Nanchang Joint Venture Setup
–Procedures
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; Let the investors sign the documents
personally, and then submit all the documents to the government
7. Keep
clients informed of the processing.
8.
Finish processing in 40-80 working days; (it depends on the registered address
and business scope)
9. Hand
over all the company kit to clients;
10. Sign
the receipt.
Nanchang Joint Venture
Setup-major types of JV in Nanchang
1.
EJV (Equity Joint Venture)
Equity
joint ventures are the second most common manner in which foreign companies
enter the China market and the preferred manner for cooperation where the
Chinese government and Chinese businesses are concerned. Joint ventures are
usually established to exploit the market knowledge, preferential market
treatment, and manufacturing capability of the Chinese side along with the
technology, manufacturing know-how, and marketing experience of the foreign
partner.
Equity
can include cash, buildings, equipment, materials, intellectual property
rights, and land-use rights but cannot include labor. The value of any
equipment, materials, intellectual property rights, or land-use rights must be
approved by government authorities before the joint venture can be approved.
After a
joint venture is registered, the entity is considered a Chinese legal entity
and must abide by all Chinese laws. As a Chinese legal entity, a joint venture
is free to hire Chinese nationals without the interference from government
employment industries as long as they abide by Chinese labor law. Joint
ventures are also able to purchase land and build their own buildings,
privileges prevented to representative offices.
2.
CJV (Cooperative Joint Venture)
In a
Sino-Foreign Cooperative Venture (also known as Contractual Joint Venture), the
parties involved may operate as separate legal entities and bear liabilities
independently rather than as a single entity. A cooperative venture may also be
registered as a limited liability entity resembling an equity joint venture in
operation, structure, and status as a Chinese legal entity.
There is
no minimum foreign contribution required to initiate a cooperative venture,
allowing a foreign company to take part in an enterprise where they preferred
to remain a minor shareholder. The contributions made by the investors are not
required to be expressed in a monetary value and can include excluded in the
equity joint venture process can be contributed such as labor, resources, and
services. Profits in a cooperative venture are divided according to the terms
of the cooperative venture contract rather than by investment share, allowing a
more flexible schedule for return on investment in cases where one investor
provides cash while the other party's investment is primarily in kind.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my