Joint venture registration

Find Joint Venture Registration. 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. Normally operation of a joint venture is limited to a fixed period of time from thirty to fifty years.

In some cases an unlimited period of operation can be approve especially when the transfer of advanced technology is involved. Profit and risk sharing in a joint venture are proportionate to the equity of each partner in the joint venture , except in cases of a breach of the joint venture contract.

Share holdings in a joint venture are usually non-negotiable and cannot be transferred without approval from the Chinese govern. See full list on pathtochina. 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 wher. A) The principal differences between an EJV and a CJVcan be simply summarized as follows: - For an EJV: 1.

A party (typically, but not always, the Chinese party) may contribute non-cash intangibles in the form of cooperative conditions. Such cooperative conditions may consist of market access rights, rights to use buildings or office space owned or leased by the party that are not subject to clear valuation. In exchange for such cooperative conditions, the party is entitled to participate.

A) The concepts of authorised and issued capital are not used in connection with Sino-foreign joint ventures. Instea the concepts of registered capital and total investment are employed. Under applicable PRC law, registered capital is defined as the total amount of capital contributions subscribed to by the parties and registered with the Chinese authorities. The concept of total investment, on the other han includes both registered capital and external borrowings.

B) Pursuant to regulations promulgated by the SAIC, certain minimum equity requirements are imposed on joint ventures. These are: Minimum Equity PRC laws governing joint ventures require that the foreign party contribute no less than of the registered capital. C) The capital to be injected by the parties constituting their capital contribution may take a variety of forms including cash, machinery, equipment and intangible pr. If a party proposes to transfer all or part of its interest in the registered capital of the joint venture company to a third party, then each other party has a pre-emptive right to purchase the equity interest proposed to be transferred. As an equity transfer also requires amendment of the joint venture contract and articles of association, which in turns requires the signature of each party, each party in effect holds absolute consent rights to any transfer generally.

All transfers of registered capital additionally require a unanimous approval of the joint venture company board of directors and approval by the original government authority which approved the joint venture contract and articles of association. A) Offshore Structures The entity to be used by the foreign investor as the offshore investment holding company (OHC) for its investment in the EJV will be determined by a number of factors. One of the main considerations driving choice of OHC is tax-efficiency.

In this respect the foreign party needs to ascertain whether there is a double tax treaty (DTT) covering the types of revenue streams that are likely to be coming out of the EJVas between the PRC and the jurisdiction where the OHC is established. DTTs generally cover loan interest, dividends and distributions, income taxes, royalties and capital gains.

The tax treatment of dividends tend to be less important in terms of determining the location of the OHC because, at present, China exempts dividends by FIEs to their foreign shareholders from withholding and other taxes (although this could change as the post-WTO levelling of the playing field progresses, as Chinese parties do not benefit from such an exemption). A) Under PRC law, joint venture companies have a fixed term of operation. Currently, the most common term of operation approved is fifty (50) years. This term can be extended with the consent of all parties and approval of the relevant government authorities. In some instances, particularly in BOT-like CJVs, the term of operation agreed by the Chinese party and approved by the relevant government authorities will be much shorter.

B) Depending on the nature of the operations of the proposed joint venture company, certain additional government approvals, permits or licenses may be require e. Certain other legal and practical considerations relating to the establishment of a Sino-foreign joint venture company are set out in the notes at the end of the template Joint Venture Contract. More information about Joint Venture : Contact Our Regiona. How to start a joint venture company in India? What is joint venture registration in China? Are joint ventures a joint venture?

How do you contact a joint venture? Each entity contributes assets to the joint venture and agrees on how to divide up income and expenses. In order to get registered as joint venture Company, Foreign Company will have to become shareholder in new Indian company and then such joint venture company will be considered as Indian domestic company. There are no separate law for registering as joint venture in India although approval from RBI or government has to be taken. A foreign party to a joint venture will likely be required to register with the Texas Secretary of State even if the co-venturers do not form a Texas entity.

Local coun-sel can help choose and set up the type of entity best suited to the joint venture ’s goals. A contractual joint venture is exactly that – a contract between the joint venture partners. Joint Ventures are the most popular entity used to respond to ‘ joint ’ tenders in South Africa. We setup an Incorporated Joint Venture for our Clients who want to apply for a Tender together with another Company – using a separate legal entity. All of the accounting will happen within that new “ Joint Venture Based” Company.

The QA gives a high level overview of joint ventures law, including regulation of joint ventures , types of joint ventures permitted in the jurisdiction, whether corporate joint ventures are subject to the corporate law, formalities for formation and registration of joint ventures , statutory limits on duration, anti-trust rules, termination, rules relating to joint ventures with foreign members, and incentives. Create, Print or Download Your Free Joint Venture Agreement Step by Step in 5-Minutes. Developed by Lawyers. Get A Joint Venture Agreement Using Our Simple Step-By-Step Process. Answer Simple Questions to Make A Joint Venture Agreement On Any Device In Minutes.

RMB 10000~ RMB 500is our suggested investment capital for Consulting, Service, Hi-Tech WFOE, Joint Venture registration , while no paid-up capital required to establish a such business. Key Issues to Watch Out for This section describes legal issues for joint ventures. This means that joint ventures need to register for VAT once their taxable turnover crosses the VAT threshold. A client recently asked me to confirm when a joint venture must be licensed to bid and perform construction work.

As consultant of (private limited company) joint venture company registration Mauritius, you are requested to read knowing registration procedure, cost, fee, time line to setup business. Before any corporations enter into a joint venture arrangement, these companies would need to have a reason to do so. Joint venture company registration Mauritius. The Joint Venture shall be considered a joint venture between the Parties in all respects, and in no event shall this Agreement be construed to create a. The operator pays expenses and distributes profits to the parties based on the profit sharing ratios specified in the joint venture agreement.

For VAT purposes, this kind of joint venture is regarded as a body of persons which could become liable for VAT registration if the joint supplies exceed the VAT registration threshold of R 1million. This document is a template for a Joint Venture Agreement between two businesses. Not even signed contracts have value if mutual trust and acceptance of the terms are not present.

It is actually better not to consider a joint venture project if motives from either side are questioned by the other side.