Shanghai Joint Venture Establishment Service
Hotline: 86-755-82143410 Email: 2355725105@qq.com
Joint Venture Registration 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.Shanghai Joint Venture Registration is also called Shanghai Joint Venture setup, Shanghai Joint Venture formation, Shanghai Joint Venture incorporation and Shanghai Joint Venture establishment.
Joint Venture Registration-Capitalization
1. The concepts of authorized and issued capital are not used in connection with Sino foreign joint ventures. Instead, 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. Thus, the term "registered capital" refers to the parties' equity in the venture. The concept of "total investment", on the other hand, includes both registered capital and external borrowings.
2. Pursuant to regulations promulgated by the SAIC, certain minimum equity requirements areimposed on joint ventures. These are:
Minimum Equity
Total Investment (% of Total Investment)
<= US$3 Million 70%
US$3 - US$10 Million 50% or US$2.1 Million (whichever is higher)
US$10 - 30 Million 40% or US$5 Million (whichever is higher)
>US$30 Million 33.3% or US$12 Million (whichever is higher)
3. The capital to be injected by the parties constituting their capital contribution may take a variety of forms including cash, machinery, equipment and intangible property, such as proprietary technology, trademarks and other industrial property rights. Pursuant to a circular promulgated by SAFE and effective as of 1 April 2003, subject to SAFE's approval, a foreign party may also use the assets obtained by way of early recoupment of investment, liquidation, share transferring, capital reduction etc. from FIEs it has previously invested in. In addition, the Chinese side may contribute the right to use a site and count this as part of its contribution.
Registered Capital (US$M) Contribution Time Limit
<=0.5 1 year
>0.5 but <=1.0 1.5 years
>1.0 but <=3.0 2 years
>3.0 but <=10.0 3 years
>10.0 subject to approval with reference to actual condition
4.Chinese law permits joint ventures to borrow funds from either Chinese or foreign banks in excess of the parties' capital contributions. Shareholder loans from the foreign party are also permitted. (Chinese partners likely will not have a sufficiently broad scope of business to permit them to provide shareholders loans.) All such loans should be registered with SAFE and should not exceed the difference between the registered capital amount and the total investment amount.
Joint Venture Registration Contact us
If you have further queries in Joint Venture Registration, please don’t hesitate to contact ATAHK at anytime, anywhere by simply visiting ATAHK’s website www.3737580.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-21-68877368 021-31397142 021-31397141 021-58822399, or emailing to hkcfm-shanghai@163.com, or adding our skype：shtannet123. You are welcome to our company 15F, No.855 World Plaza, South Pudong Road, Pudong District, Shanghai, China.