China EJV Registration

China EJV Registration is also called China EJV formation, China EJV setup, China EJV incorporation and China EJV establishment. 

Sino-Foreign Equity Joint Venture (EJV) is also called equity joint venture. Although the demands from overseas investors for creation of enterprises with foreign investment in the form of joint ventures are diminishing, some special industries are still relying on this mode of joint venture incorporation.

China EJV Registration-Forms of Investment and Terms

Fully paid at one time: All parties to the joint venture shall pay up the capital within 6 months from the date of acquiring the business license;

By installments: All parties to the joint venture shall pay 15% of their respective subscription in the first installment within 3 months from the business license being granted, and pay up the remainder within the period as required; otherwise, it shall be deemed to be automatically winding up

China EJV Registration-Ratio of Investments

The Law on Enterprises with Foreign Investment requires the foreign investor to contribute not less than 25% of the registered capital of the joint venture, but without a top limit.

China EJV Registration-Required documents for China EJV 

1. Business registration documents of all parties to the joint venture;

2. The foreign partner's bank reference letter;

3. Real estate rights certificate or office lease contract;

4. The curriculum vitae and ID card of the legal representative;

5. The ID cards of individual shareholders and directors;

6. The feasibility study report of the proposed incorporation;

7. The contract and articles of association of the joint venture.

China EJV Registration-Advantages for EJV

1. Shared resources and complementation of advantages, given full play of the network and the famous brand already established by the Chinese enterprise, as well as smooth entry into the Chinese market；

2. Joint venture enables the foreign investor to utilize the geographic advantage of the Chinese enterprise for reasonable and lawful reduction of various fiscal charges and large reduction of operating cost；

3. Entitled to foreign investor preferences.

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