Starting a joint venture in China -

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Author	Topic: Starting a joint venture in China
Ken	posted 01 August 2009 02:56 PM Hello, what are the conditions to start a joint venture in China to manufacture clothing? Like The minimum registered capital and other conditions if there are any.
Jerry Wang	posted 04 August 2009 10:42 AM Registered capital shall not be less than RMB30,000 for a JV. Any further questions, please write to me via legalform@126.com. I'm based in Shanghai.
Mira	posted 14 August 2009 03:49 PM Dear Ken, The law says that it needs minimum 30,000 RMB to form a company, but when it comes to JV or WFOE, the minimum registered capital for the government to approve is 500,000 RMB to 1 million RMB. It depends on the location and the scope of your business. For further information you can refer to www.pathtochina.com
Jonathan Zhang	posted 17 August 2009 10:13 AM I support Mira above. But with an addition: according to China Law of Joint Venture, the share of the foreign party should be no less than 25%, and a Chinese Individual can not be shareholder, it has to be an entity. More details: www.5cgroup.net
tracy	posted 15 September 2009 11:59 AM Hi,Ken, Since you wanna start a manufacturing JV, the establishment of manufacturing company requires the most complicated procedures, including environmental evaluation, fire safety inspection, the customs record, machinery duty-free application and factory construction application. Before setting up in China, you should review your current investments and future business plans to determine the optimal investment vehicle to be set up in accordance with the current China investment regulations and WTO market access commitments. The steps of setting up in China must be carefully planned. The following are the points that you cannot afford to miss: 1. In case of forming a joint venture, seek support in contract negotiation and due diligence review. 2. Verify the feasibility and prerequisites for setting up, because they could be subject to local differences in practices and interpretations of laws. 3. Optimize the tax-effectiveness of your shareholding structure and funding arrangements. 4. Formulate the business scope of the entity to be set up and negotiate with the approval authorities when necessary. 5. Ensure the application documents for submission are complete, accurate and in the right format. 6. Find out appropriate channels for approval and registration and go through the procedures step by step.
bizlawoffice	posted 09 October 2009 09:41 AM Here are tips for your kind information: 1. According to PRC Company Law,legally the minimum required capital for registration is RMB 30,000 Yuan. But people always invest much more than this in order to increase corporate credit and show corp strength; 2. As a foreign-invested manufacturing company, more restriction are imposed on, including without limitation to legal status of the invest parties, proportion of the share of the foreign party,etc. All these restriction and conditions would be a bit different in different cities and/or Jurisdictions. You can get detailed formalities on relative Administration of Industrial and Commerce. You can also call the authority for assitance at: Area code+ 12315. But setting up a JV is typically complex and need to do a lot of documentation work. You can learn more details by visiting our website: www.bizlawoffice.com or send us email via info@bizlawoffice.com for any inquiry.

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