Introduction

In recent years, China fever is so intense. China has became the prime destination for the most desired type of global capital. China' s absorption of foreign direct investment enjoys stable increase.

In compliance with WTO rules, the bulk of Chinese laws and regulations regarding foreign direct investment has been and is greatly changing. Chinese administration is no doubt taking pains to improve the soft investment environment to enhance the trend of investment flows to China.

For all those efforts, Chinese laws and policies concerning the foreign capitals' participation in China' investment fund market still leave large room to be perfected. So you need a team consists of expertises
Who is capable of offering investment advisory from time to time?

Tian Bo Law Firm is the firm of choice. We, together with our investment consultant, are capable of guiding you through the complicated laws and regulations and will be available to your services any time after signing the retainer agreement with us. As usual, we will dispatch a senior lawyer as your main contact and an advisory body is to follow.

Types of Joint Venture

The foreign- funded enterprises, according to the law of People Republic of China, generally fall into three categories:

Chinese-foreign joint venture

Chinese-foreign joint venture is a kind of Equity Joint Venture, other than Contractual Joint Venture with the status of Chinese legal person, and shall take the form of Limited Corporation, in a special case Joint Stock Company. The venture shall be jointly invested, jointly managed, and the parties shall share its risks, profits and losses.

Chinese-foreign cooperative venture

With the status of Chinese legal person, it is a contractual Joint Venture, which is established by signing a contract through consultation of interested parties. The rights, obligations and interest distribution all shall be stipulated in the contract. It does not necessarily form a legal person, but still an economic entity.

Enterprises exclusively run with foreign funds

This enterprise is established by foreign economic organizations or individuals with funds entirely of their own. All the profits made by a foreign enterprise goes to the foreign investors after taxation and other forms of fees being levied.

Foreign capital may also find its way to Chinese market in the form of representative offices, or by way of contract agreements.

Procedures for Establishing Enterprises with Foreign Investment

Procedures for approval

With required documentation, every foreign companies or individuals, regardless of the amount of the capital, scope of the investment, investment destination, shall report to the Ministry of Foreign Trade and Economic Cooperation or other authorized governmental organizations for the inspection and approval of the establishment of Joint ventures. In some case, the local government may also have the right to make the approval when authorized.

Procedures for registration

Within 30 days after receiving of approval certificate, the chief representative of the office shall go through registration procedures with the Administration for Industry and Commerce, with one copy of original and one duplicate approval certificate, copies of submitted documents (each two copies), a copy of rent agreement for office site and three photographs of the chief representative.

Other Procedures

Registration for taxation;
Opening an bank account in China;
Customs procedures;
Procedures to employ Chinese personnel;
Apply for permanent residence of representative of foreign nationality;
Z-type visa (which is granted to foreigner with permission to work in China and his families).

Our Services

The practice of the investment funds team at Tian Bo Law Firm extends to more than 10 subject matters, TB lawyers are highly skilled and well prepared to assist our clienteles in the following legal affairs:

The project proposal and Feasibility study report of Sino-foreign joint and cooperative ventures
Draft articles of association, cooperative contract and other documentation
Capital Assessment
Approvals from governmental authorities
Establish representative offices
Franchising
BOT ( Built_Operation_Transfer)
Project Finance
Taxation Strategy
Various kinds of negotiation, mediation, arbitration, litigation.
Company Liquidation
M&A (Merger and Acquisition)
Insolvency and liquidation
Insurance, Real-Estate and Intellectual Property
Consultation Service