Malaysia Hotline: +603-2141 8908

A Joint Venture (JV) 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.

Nanchang Joint Venture Setup-Advantages

1. Ability to formally carry on business rather than just a representative office function;

2. Issue invoices to their customers in RMB and receive RMB revenues. Convert RMB profits to US dollars for remittance to their parent company outside.

3. Cheap labor, which can lower your cost;

4. Greater efficiency in its operations, management and future development.

Nanchang Joint Venture Setup –Procedures

1. Fill out the application form (sign the agreement);

2. Company name search & confirmation;

3. Pay for the services;

4. Submit the needed documents;

5. Check the documents;

6. Prepare for the statutory documents; Let the investors sign the documents personally, and then submit all the documents to the government

7. Keep clients informed of the processing.

8. Finish processing in 40-80 working days; (it depends on the registered address and business scope)

9. Hand over all the company kit to clients;

10. Sign the receipt.

Nanchang Joint Venture Setup-major types of JV in Nanchang

1. EJV (Equity Joint Venture)

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. Joint ventures are usually established to exploit the market knowledge, preferential market treatment, and manufacturing capability of the Chinese side along with the technology, manufacturing know-how, and marketing experience of the foreign partner.

Equity can include cash, buildings, equipment, materials, intellectual property rights, and land-use rights but cannot include labor. The value of any equipment, materials, intellectual property rights, or land-use rights must be approved by government authorities before the joint venture can be approved.

After a joint venture is registered, the entity is considered a Chinese legal entity and must abide by all Chinese laws. As a Chinese legal entity, a joint venture is free to hire Chinese nationals without the interference from government employment industries as long as they abide by Chinese labor law. Joint ventures are also able to purchase land and build their own buildings, privileges prevented to representative offices.

2. CJV (Cooperative Joint Venture)

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 where one investor provides cash while the other party's investment is primarily in kind.

Tannet Malaysia is an international company based in Hong Kong, Shenzhen. We provide various of services included offshore and onshore company formation, worldwide trademark registration, work permit application, offshore bank account opening, documentation management and etc. Contact us for more information on our other services if you are interested.

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