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  Establishing a Joint Venture (JV)

This is a relatively easy way to enter the China market it will give you immediate access to market and to distribution channels.
A joint venture is a new limited liability legal entity entered into by a foreign investor or investors and a Chinese company in which the foreign
party or parties own more than 25% of the shares. A joint venture can be entered into for a period of up to 50 years.

There are two types of Joint Venture in China, the Equity JV and the Co-operative JV, they appear similar on the surface but have different implications for the structuring of your JV.

A JV although an easy way to enter the market can be difficult to structure and a nightmare to operate. Your Chinese partner’s expectations and long term plans may be totally different from yours, “same bed different dreams" is a common Chinese idiom.

The paper work and legal structuring needs to be very carefully drafted to ensure your long term business protection. In particular your Joint Venture Contract and Articles of Association.

 

For business set-up assistance we recommend the following company.
A.C.T. Link
Mr. Les Smith
Room 717 Union Development Building of China
728 Xin Hua Rd, Channing District, Shanghai
Tel: +86 21 6294 1889
Email: information@actlink-china.com
Webb: www.actlink-china.com

 

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