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Cooperative Joint Venture (CJV) Registration in Quanzhou

Quanzhou Equity Joint Venture (EJV)

Update Date:2018-4-20 17:56:16     Views:942

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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.


Cooperative Joint Venture (CJV) Registration in 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.

Cooperative Joint Venture (CJV) Registration in Quanzhou – 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.

Cooperative Joint Venture (CJV) Registration in Quanzhou – 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.

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