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.
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
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.
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.
Registration for taxation;
Opening an bank account in China;
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).
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
Approvals from governmental
BOT ( Built_Operation_Transfer)
Various kinds of
negotiation, mediation, arbitration, litigation.
M&A (Merger and
Insolvency and liquidation
and Intellectual Property