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    How To Register A Sino Foreign Joint Venture Company

    2010/11/10 9:29:00 53

    Registered Wage Joint Venture

    China and foreign countries

    joint venture

    Enterprises are one of the main forms of foreign direct investment in China.

    enterprise

    The essential feature of Sino foreign joint ventures is to achieve a strategic goal of mutual benefit, overcome the relative shortage of resources in the two parties, and seek a strategic pitional arrangement under the condition that all parties' strategic interests are compatible.


      

    register

    Questions and answers of Sino foreign joint ventures:


    1. Q: what information is required for Sino foreign joint ventures?


    A: we need to provide the following information:


    1. Contracts and articles of association signed by both parties.


    2. List of imported equipment (no import equipment is not required).


    3, the list of the board of directors to be run;


    4. Photocopy of China's business photo.


    5. The business registration certificate, registration certificate and bank credit certificate of the foreign company.


    6. There are 2 photos of the enterprise liaison officers.


    7. The proof of the origin of the enterprise.


    Two. Q: what is the minimum amount of registered capital to apply for a Sino foreign joint venture? Can the registered capital of this company be realized by installment payment? If so, what is the maximum proportion of installment payment and how long is the time limit?


    A: except for certain industries, the minimum registered capital requirements for foreign invested enterprises are not provided for the minimum registered capital of a joint venture. In practice, it is generally $200 thousand, and in some development zones there is a lower level, such as $140 thousand.

    Foreign invested enterprises are different from domestic funded enterprises. Domestic funded enterprises require capital verification and registration, so they can not invest in installments, but the registered capital of foreign invested enterprises can be phased in place.

    In the joint venture contract, it is stipulated that the first phase contribution of the parties to the joint venture shall not be less than 15% of the amount of capital contributions subscribed, and shall be paid within three months from the date of issuance of the business license.

    As for the longest period, it will not exceed three years in principle.

    If the registered capital exceeds ten million dollars, the time limit for capital contribution shall be examined and approved by the examining and approving organ according to the actual situation.


    Three, Q: overseas companies are going to open up business in China. What is the difference in policy between establishing offices, branches and subsidiaries in China? Are there any restrictions on business? What are the preferential policies? Which way should be adopted to be more beneficial to the company?


    A: the representative office of foreign enterprises is only a liaison organization. It can not engage in business activities. Of course, it does not enjoy preferential policies. The branch does not have a legal person qualification, it is only a branch of a foreign company, nor does it enjoy preferential policies. Usually, only a specific industry can be established in the form of a branch. Generally speaking, the establishment of a subsidiary by a foreign enterprise in China means the establishment of a wholly foreign-owned enterprise. It is a Chinese enterprise legal person enjoying China's preferential policies to encourage foreign investment.

    What form to take depends on the strategic conception of foreign enterprises entering the Chinese market and the actual demand of enterprises. {page_break} can not be generalized.


    Four, question: what preferential policies are there in the establishment of foreign-funded enterprises?


    Answer: 1. the enterprise income tax rate is 24% when the business enterprise is in operation for more than 10 years, and the enterprise income tax is reduced from 2 years to 3 years from the beginning of the profit.


    2. a productive high-tech enterprise with a period of more than 10 years (whichever is the certificate of high and new technology enterprise) shall be exempted from the 2 year's profit tax for half of 3 years from the beginning of the profit. The enterprise income tax shall be levied half of the enterprise income tax. The enterprise can apply for it, and all the reduction and exemption shall be approved by the financial department at the same level. After the expiration, the enterprise income tax shall be levied by half of the three year extension of the first technology enterprise, and the tax rate of less than 10% shall be levied at 10% tax rate.


    3. any enterprise with a technology intensive or knowledge intensive project or a productive project with a foreign investment of more than 30 million US dollars and a long period of investment recovery may be subject to enterprise income tax at a rate of 15%.


    4. after the expiration of the enterprise income tax exemption or reduction in accordance with the law, the advanced technology enterprise can be exempted from the enterprise income tax if it is approved to be an advanced technology enterprise for a period of 3 years.


    5. after the expiration of the enterprise income tax exemption or reduction in accordance with the law, the export value of the export product will reach 70% of the total output value of the current year, and the enterprise income tax can be levied at half the rate stipulated by the tax law.

    A product export enterprise that has paid enterprise income tax at a rate of 15% is subject to enterprise income tax at 10% tax rate.


    6. if a foreign investor will directly invest in the enterprise from the profits of the enterprise or set up a new enterprise in the development zone and operate for a period of not less than 5 years, the tax of 40% of the enterprise income tax paid by the reinvestment portion shall be returned. The above investment is a product export enterprise or an advanced technology enterprise, and the period of operation is not less than 5 years, all of which shall be refunded to the enterprise income tax paid by the reinvested portion.


    7. a productive foreign invested enterprise may be exempted from land use fees within the period of preparation for the contract.

    Products export enterprises and advanced technology enterprises can reduce or exemption land use fees.


    8. the land in the Development Zone shall be paid in accordance with the relevant laws and regulations of the state and local governments, and the People's Republic of China state owned land use certificate shall be handled for the enterprises entering the region.

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