China Joint Venture Registration

Establish a business partnership in China by registering a Joint Venture with a local Chinese collaborator.

What is a Joint Venture ?

A Joint Venture (JV) in China is like a teamwork deal between a foreign company and a local Chinese partner. They team up to do business, especially in industries where JVs are allowed. This helps both sides share risks and lower the uncertainty of entering the market.

Minimize Upfront Investment

Joint Venture requires less initial investment than WFOE in China

Share Cost

Our JV Setup Procedure

JV Registration

Chinese Company Name
Business License
Company Chops & Seals
Chinese Article of Association

Registered Address

Virtual Address
Physical Address Coordination with recommendations

Bank Accounts

Capital Bank Account
Primary Bank Account

Tax & Accounting

VAT Registration
Monthly Reports Preparation
Filing Tax Return
Invoice Generation

Value Added Services

Business License Management
Fapiao / VAT Receipt
Bank Access
Store Keeping

Employer of Record ( Optional )

Start your operations in China by finding & hiring local chinese / expat before company is registered.

JV Incorporation Process

Prior to incorporation, a careful pre-registration process is essential. This phase involves crucial steps given below.

  1. Chinese Name Recommendation
  2. Chinese Name Pre – Approval
  3. Business License Application
  4. Mandatory Seals : China Company Seal,  Legal Representative Seal, Financial Seal
  5. Preparation of Chinese Template Article of Assocaition

Registered address can be both virtual or physical based on the business & product type.  It is mandatory to obtain a physical regsitered address for the following product / service.

  1. Forwarding Company would require a warehouse
  2. Liquor Selling Company would require a special  liqour license & shop

Bank Account process would include opening capital bank account & primary bank account. Capital Bank Account is used to transfer & receive overseas funds whereas primary bank account is used for local transactions in China.

It would take 2 weeks – 1 month to successfully open capital & primary bank account in China.

We provide a dedicated finanical manager who can take care of the following tasks for you.

• Confirm sub ledgers with client.
• Setup the general ledger and sub ledgers in system in accordance with China GAAP.
• Client needs to provide CA Ukey if not registered by Top FDI.

• Prepare monthly reports (Trial Balance, Profit & Loss Statement and Balance Sheet, and customized
client’s reports);
• Complete monthly and quarterly tax return;
• Journal & invoice binding and filing.

 

Top FDI provides additional value added services to help you manage your business effectively.

  1. Domestic & International Payments : We process domestic & international payment online upon client instruction including preparation of documents required by bank, submission and follow up with the bank for the same.
  2. Bank Access : Download monthly bank statements and reconcile bank balance.
  3. Fapiao / VAT Receipt : Print, Issue, Mail Fapiao upon client’s instruction and submit fapiao  records to tax bureau.
  4. Store Keeping : Safekeeping of Company Seals, Business Licenses, UKey & accounting related documents.

Industries Eligible for Joint Ventures in China

Education

A school or university is required to operate as a joint venture (JV) with a majority ownership stake held by Chinese entities, and the school's principal must also be a Chinese citizen.

Automobile Manufacturing

Foreign automakers often need to establish JVs with local Chinese companies to manufacture and sell vehicles in China.This local partner would hold majority of shares in JV.

Financial Services

Companies in the financial sector, such as banks and insurance companies, often require JVs or cooperation agreements to operate in China.

Telecommunication

Foreign telecom companies entering the Chinese market may need to form JVs with local partners.

Pharmaceuticals & Healthcare

Drug manufacturing and healthcare services may require JVs or cooperation with local firms.

Oil & Gas Exploration

WFOEs may not exploit oil and gas reserves within China’s territory. A joint venture is however allowed to carry out such operations.

Frequently Asked Questions

A joint venture is an agreement by two or more people or companies to accomplish a specific business goal together.

 There are two types of joint ventures. Cooperative Joint Ventures (CJVs) involve a cooperative relationship between foreign and Chinese partners, while Equity Joint Ventures (EJVs) establish a new legal entity with shared equity ownership between the partners.

A WFOE is a company fully owned by foreign investors, allowing them to have complete control over their operations and decision-making processes. On the other hand, JVs involve a partnership between foreign investors and Chinese entities.

Joint ventures (JVs) provide a strategic solution for accessing the Chinese market. By partnering with a local company, you gain valuable insights into the market dynamics, consumer preferences, and business practices specific to China. This local expertise is crucial in navigating the unique challenges you may encounter, allowing you to avoid costly mistakes and accelerate your market entry.

Furthermore, joint ventures enable you to leverage your partner’s existing network, relationships, and resources in China. This can include established distribution channels, manufacturing facilities, supply chains, and local talent. By combining your strengths and resources, you can create a synergy that enhances your competitive advantage in the market.

Certain industries in China impose restrictions or prohibitions on foreign companies, particularly in the context of establishing joint ventures. These restrictions serve to safeguard national security, protect key industries, and foster domestic company development. Industries such as telecommunications, media and publishing, internet services, education and training, and banking and financial services often face such limitations. In telecommunications, concerns over critical infrastructure and national security prompt restrictions on foreign ownership and licensing. Similarly, the media and publishing sector restricts foreign involvement to preserve cultural interests and maintain ideological control. Internet services encounter limitations on ownership, content control, and data localization to regulate information flow and safeguard national security.

China’s government offers a host of tax breaks, ensuring that more of your hard-earned revenue remains in your pocket. Through partnerships with local Chinese companies, you can access preferential tax rates, exemptions, and deductions. These incentives alleviate your tax burden, allowing you to reinvest those savings back into your business for growth and expansion. Additionally, subsidies are available to supercharge your business’s development. Whether it’s funding for research and development, environmental protection, or energy efficiency, these subsidies provide financial assistance, propelling your growth and enabling you to innovate, upgrade your technology, and gain a competitive edge in the Chinese market.

  1. Joint Venture Scams:  Imagine this scenario, you’ve identified a promising joint venture opportunity in China, only to fall victim to a sophisticated scam that leaves you financially devastated. Unfortunately, this is a harsh reality faced by many unsuspecting foreign investors. These scams can involve fraudulent companies posing as legitimate partners, misrepresenting their financial status, or even siphoning off funds. To safeguard your interests, it is crucial to conduct thorough background checks, verify the credentials of potential partners, and seek legal counsel to review contracts meticulously.
  2. Unequal Resource Contributions: In joint ventures, the equitable allocation of resources is vital for fostering a healthy and mutually beneficial partnership. However, unequal resource contributions can be a common challenge, particularly when collaborating with Chinese entities. Some local partners may promise significant resources or market access but fail to deliver as agreed. This can result in an imbalance of power, hampering the joint venture’s ability to achieve its objectives. It is essential to negotiate clear and detailed terms regarding resource allocation, ensuring transparency and accountability throughout the partnership.
  3. Intellectual Property Theft in Joint Ventures: Joint ventures often involve sharing sensitive information, technology, or trade secrets, making it necessary to identify the vulnerable stages where IP theft is most likely to occur. By taking preventive measures at each of these stages, you can significantly reduce the risk of IP infringement.
Scroll to Top