An EJV is the most common and preferred method of doing business in China. It is a limited liability company and is required to be registered as a legal person. The main feature is that the joint venture parties take responsibility for losses and profits take responsibility for losses and profits according to the ratio of their equity stake.
The minimum level of foreign participation in an EJV is 25% of the registered capital. The registered capital is not limited to financial capital but may also encompass non-financial assets such as intellectual property rights, buildings, materials, or machinery if approved by the government.
Shares cannot be transferred or withdraw under any scenario without the approval of the government.
Operation of joint ventures is limited to an expiry period can be extended.
There are capital/total investment ratio requirements that need to be fulfilled depending on Capital Contribution for details.
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
