Equity Joint Venture

Ⅰ.THE CONCEPT OF JOINT VENTURE
The Sino-foreign joint venture is the enterprise that foreign companies, enterprise and other economic organizations or individuals (hereinafter referred to as “foreign joint ventures”) to establish equity joint venture together with Chinese companies, enterprise and other economic organizations (hereinafter referred to as “Chinese joint ventures”) within the territory of the People's Republic of China, on the principle of equality and subject to approval by the Chinese Government. Both parties to the venture shall share the profits, risks and losses in proportion to their contributions to the registered capital.

Ⅱ. COMPANY NAME
In Guangzhou China, only Chinese company names are officially used, while English company names are for reference only. NOT every name will be accepted by the Company Registry. And in China some sectors need special license, it is important for you to know the wording of a company name should be in conformity with the registered capital, such as with the words “investment” or “industrial” within a company name, the registered capital should more than RMB 100 millions, while “group’’ or “holding” more than RMB 50 millions. (The detailed information depends on the local stipulation) Your company name must be distinguished from the others registered company name before. If the word “china” within the company name, must do pre-approval in China Business Department.

Ⅲ.REGISTERED AND PAID-UP CAPITAL
1) For the trading enterprises, the registered capitals are usually required as much as 500,000RMB or above; 2) For the manufacturing enterprise, the registered capitals are usually required 1 million RMB or above;

3) For the company of consultancy, technology, market research and development, the registered capitals are usually required RMB100, 000 or above;

All of the registered capital can be paid in one time; (within 6 months after the date of issuance of the Company’s business license) and can also be paid for many times in two years. In the first 3 months, 15% of the registered capital is mandatory. The terms of payment is determined by the volume of registered capital. The capital verification fees will be reduced if the terms of payment reduce.) 

Ⅳ.OPERATING PROCEDURE:

(1)ENTRUSTING PROCEDURE:
Fill in the application form→Entitle the company name→pay for the earnest money (50% of total)→submit the needed document→check the document→submit all the document to the government→inform the course→finished within the 30-50 working days→collect the document→pay the spare money

(2)CUSTOMER PROCESSING PROCEDURE:
Foreign investors director meeting resolution→Entitle the company name→Business scope confirmation→Registered capital confirmation→Shareholder confirmation→Appoint legal representative

of Chinese company→Chinese office confirmation (consider fire and environment factors if needed)→Transact lawyer’s notarization and submit it to the authority dept to sign→Reference letter of bank→Entrust to transact→Inject the investment money to the capital account on behalf of investor→Capital verification→After-approval (if needed)

Ⅴ.DOCUMENTS REQUIRED
1. The investor is abroad enterprise

①For the trading enterprise and service company, the following documents are required:
The documents that abroad enterprise need to offer:

1) Board of director’s meeting minutes or resolution;
2) Copies of the business license and certificate of incorporation of parent company ;
3) Two original bank reference letters (from investor's bank) indicating foreign investors’ creditability, issued within 6 months in both English and Chinese language;
4) Lawyer’s notarization (Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)
5) Company’s stamp (use for government application)
The documents that China enterprise need to offer:
1) Board of director’s meeting minutes or resolution;
2) The copy of business license;
3) Company stamp;
4) Last year’s audit report; (the company that registed over one year need to offer)

The documents that both two enterprises need to offer:
1) The contract between two parties:
2) One proposed name (in Chinese), and provide two back-up names in case the first name is not available;
3) Detailed information about the business scope and registered capital;
4) Feasible study report;
5) Original Articles of Association;
6) The original and copies of identity certification of Chinese legal representative, and 2 1’ color photos;
7) The copies of supervisor’s identity certification and the name list of directorate as well as all diector’s identity certification copies.
8) The office address: your own house property or the rented commercial building    (two original copies of lease with signature by Housing Management Authority, showing the recognized registered address of WFFE. The signing party should be in the name of WFFE or its legal representative; the purpose must be for commercial use, and 30 square meters or above)

② For the manufacturing enterprise, the following documents are required:
The documents that abroad enterprise need to offer is the same as trading company;
The documents that China enterprise need to offer is the same as trading company;
The documents that both two enterprises need to offer:
1)-7) is the same as trading company
8) Production address: your own house property or the rented commercial workshop (two original copies of lease with signature by Housing Management Authority, showing the recognized registered address of WFFE. The signing party should be in the name of WFFE or its legal representative. The purpose must be for workshop use, and 200 square meters or above.)

2. The investor is abroad natural person
1) Lawyer’s identity notarization; (Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)

2) Two original bank reference letters (from investor's bank) indicating foreign investors’ creditability, issued within 6 months in both English and Chinese language.
And other document required is the same as aboard enterprise.

Ⅵ.OUR SERVICES
TANNET provides one-stop tailored-made services for foreign companies which would like to set up wholly foreign founded enterprises in Guangzhou of China.
1) 7 copies of Approval documents:
2) 2 copies of original articles of association signed by members of the Board and with company chop;
3) Both original and duplicate copy of foreign invest enterprise approval license;
4) Both original and duplicate copy of business license;
5) Cachet, financial, legal representative private chop;
6) Seal carving registration card;
7) Opening and canceling account confirmation;
8) Both original and duplicate copy of Organization Code License & card;
9) Registration license and form of State &Local Administration of Taxation;
10) Foreign exchange registration license and approval certificate;
11) Foreign trade operators Registration Form;
12) Open basic fund bank account;

Ⅶ.AFTER SERVICES
TANNET can provide a series of after services to customers, such as open company basic bank account,open tax account, do accounting, annual return service, company alteration, financial planning and so on

Ⅷ.THE TIME NEEDED
1) For manufacturing enterprise: 30-50 working days will be finished. (Count the time after the approval of environment & fire and the detailed time depends on the operation type)
2) For the trading and service enterprise: 30-50 working days will be finished.(The detailed time depends on the operation type)

Ⅸ.CONTACT US
HK TEL:27837818                           HK FAX:27837918       
Guangzhou TEL:82143181           Guangzhou FAX:82143182  
BEIJING TEL:58674409                 BEIJING FAX:58674405
SHANGHAI TEL:58763186            SHANGHAI FAX:58402186
GUANGZHOU TEL:84476717       GUANGZHOU FAX:84359060     
YIWU TEL:85206707                       YIWU FAX:85206709    
CHENGDU TEL:86676605            CHENGDU FAX:86676601       
QUANZHOU TEL:22510909          QUANZHOU FAX:22510909 
WEBSITE：www.tannet.net   www.tannet-guide.net     
EMAIL：mailtannet@21cn.com

Note:
1.Hand over of such as for non- Chinese document, need to translate into chinese and hand over together.
2.Carry out time to hand over a well-found day by consigning down payment and data since start computing.