A CJV has the option to register as a legal person with limited liability. The parties in a CJV have the flexibility of choosing whether to operate the enterprise as a limited liability company or to operate it as a non-legal entity under which partners bear unlimited liability. The profits of a CJV are allowed to be shared by participants as specified in the contribution. As a result, this type of venture is ideal when the foreign investor is only looking for a short-term project. After obtaining a fair or premium return on investment, the foreign investor returns the majority of full ownership of the enterprise to the Chinese partner.
1. A cooperative venture does not require a new business license if it is arranged in contractual form under the auspices of an existing joint venture enterprise.
2. There are no expiry periods or limitations on the length of the venture. The contractual terms can be renewed at any time for any extended period, subject to the approval of the government.
3.Investment contributions from each party are not limited to financial capital but may also include non-financial assets such as intellectual property rights, buildings, materials or machinery.
4. Transfer or withdrawal of investments is not subject to the approval of the government. Foreign investors can deploy their registered capital as the y see fit.
Contact Our Consultant in Shanghai for more details:
Office: 13C,1399,Beijing Road,Shanghai,200040 China
Hotline: 400-820-2586 (English,Mandarin)
Phone: (8621)6279-1870 (English,Mandarin)
Fax: (8621)6279-1180
Email : consultant.en@handao.net
