Chinese-Foreign Joint Venture Enterprise
Chinese-Foreign Joint Venture Enterprise is a cooperative company established in China by Chinese investors and foreign investors according to Enterprise Laws of Chinese-Foreign Joint Ventures, China company law and its Implementation Regulations. It should be two or more than two investors from different country to set up the company whose profits and losses are born jointly through cooperate management. And the foreign shareholders shall be no less than 25% of the company’s total registered capital.
The characters of Chinese-Foreign Joint Venture Enterprise:
1. According to Enterprise Laws of Chinese-Foreign Joint Ventures, The Chinese shareholder could be Chinese local company or other economic organization, but cannot be individual.
2. Top! PuDong new district is a pilot district in Shanghai for Chinese-Foreign Joint Venture company, it’s allowed the Chinese person to be shareholder in the joint venture company, but must have physical office in Pu Dong district .
3. The foreign shareholder is flexible, which could be a foreign company, other economic organization or an individual person.
4. As Chinese-Foreign Joint Venture Company, it’s independent enterprise legal entity in China, must comply with China laws and regulations.
5. The corporate responsibility is LLC / Limited Liability Company.
6. The shareholders should invest and manage the company together in the principle of mutual respect, equality and mutual benefits, and the profits and losses should be born jointly as well according to their share percentage.
The advantages of Chinese-Foreign Joint Venture Company:
1. It could realize complementary advantages and resource sharing by taking the utmost of existing network with famous brand established by Chinese company, help the foreign shareholders enter into China market smoothly.
2. It could lower fiscal expenditures legally by taking Chinese shareholder’s advantages, finally lower the operation cost.
3. Chinese-Foreign Joint Venture Company is still foreign company.
Operation management of the Chinese-Foreign Joint Venture Company:
The Chinese-Foreign Joint Venture Company shall set up board of directors. The board of directors is the highest authority of the company. The board chairman could be appointed by either Chinese or foreigners who will be concurrently as legal representative of the Joint Venture Company. General Manager is responsible for company routine management, who should be appointed by the board of directors. The board chairman or other directors could be concurrently as general manager.