Malaysia Hotline: +603- 2141 8908
A
cooperative joint venture (CJV) company is a joint venture company between a
Chinese and a foreign company within the territory of Quanzhou. The Chinese
company usually provides the labour, land use rights and factory buildings,
while the foreign company brings in the necessary technology and key equipment,
as well as the capital. This joint venture is based on a cooperative joint
venture contract in, which can not only enhance the corporate image and win the
trust of overseas customers, but also can enjoy the preferential policies of
Quanzhou.
Notional Differences between CJV
and EJV in Quanzhou
A
Cooperative Joint Venture (CJV) is an agreement between a Chinese and a foreign
company within the territory of Quanzhou. An equity joint venture (EJV) is an
agreement between two companies to enter into a separate business venture
together. The detailed differences as follows:
• An EJV
is always a legal person, and thus a limited liability company whereas a CJV
can be a legal as well as a non-legal person. The latter option is not very
common though because it would mean that the partners of the joint venture
would be personally liable for any losses the company might make in the future
• In an
EJV the distribution of profits has to take place equivalent to the ratio of
the capital contributions made by the parties, while the distribution in a CJV
can take place according to the parties' wishes. A CJV is thus a lot more
flexible than an EJV.
• In a
CJV a party may, besides contributing registered capital, provide for so-called
cooperative conditions (Hence the name Cooperative Joint Venture), e.g. market
access rights.
CJV Registered Capital in
Quanzhou
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.
Process of CJV in Quanzhou
Cooperative
Joint Venture allocates its profits not on the basis of investment amount or
shareholding, but according to the rights and obligations determined by
contract between all parties, where the foreign party can recover the
investment in priority, and after the contract ends, fixed assets of the
co-operative venture are generally vested in the Chinese party. Tannet Group
Limited is a diversified international company, offering these services
formation professionally.
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