Malaysia
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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.
Tannet Malaysia is an International Consultant Firm based in Hong Kong, Shenzhen. We provide one stop business solution to those investor who are interested to expand of their business oversea. Besides, we offer various of business services such as international company incorporation, commercial secretarial services, business proposal drafting, due diligence, market research and etc. Kindly contact us for more information if you are interested on our other services!
Contact us:
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Shenzhen hotline：86-755-
36990589;
Email: mytannet@gmail.com
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