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Xiamen Cooperative Joint Venture (CJV)

Update Date:2015-10-12 9:10:02 Source:Tannet (Malaysia) Sdn Bhd Views:907

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A Cooperative Joint Venture (CJV) is a joint venture between a Chinese and a foreign company within the territory of China. More and more enterprises come to register companies in Xiamen and overseas countries as a testing ground to win overseas market. Then, based on the testing ground company, they invest in the mainland aiming at setting up Sino-foreign joint ventures, enterprises with Sino-foreign cooperation, and wholly foreign-owned enterprises and forming the pattern of having stores in front and factories behind, which can not only enhance the corporate image and win the trust of overseas customers, but also can enjoy the preferential policies of China.


Xiamen Cooperative Joint Venture (CJV) – CJV Registered Capital in Xiamen

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.


Xiamen Cooperative Joint Venture (CJV) – Processes of CJV in Xiamen

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 is a diversified international company, offering these services formation professionally.


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