Business Services

EJV (Equity Joint Ventures)

Equity joint ventures are the second most common manner in which foreign companies enter the Chinese market. There are specific requirements for the management structure of a joint venture but either party can hold the position as chairman of the board of directors. A minimum of 25% of the capital must be contributed by the foreign partner(s). There is no minimum investment for the Chinese partner(s).

CJV (Cooperative Joint Venture)

In a Sino-Foreign Cooperative Venture (also known as Contractual Joint Venture), the parties involved may operate as separate legal entities and bear liabilities independently rather than as a single entity. A cooperative venture may also be registered as a limited liability entity resembling an equity joint venture in operation, structure, and status as a Chinese legal entity.

On average, the operation of a joint venture is limited to a fixed period of time from 30-50 years. In some cases an unlimited period of operation can be approved, especially when the transfer of advanced technology is involved.