A GUIDE TO YIWU JOINT VENTURE REGISTRATION

A GUIDE TO YIWU JOINT VENTURE REGISTRATION——0755-82143181

http://www.onobbb.com/I. OVERVIEW OF YIWU
Yiwu is located in the eastern Jinqu Basin, east longitude 119 degrees 49 minutes to 120 degrees 17 minutes north latitude 29 degrees 02 minutes 13 "to 29 degrees 33 minutes 40", the geographical center of Zhejiang Province is located in the territory. East Dongyang, the southern boundary of Yongkang, Wuyi, west Jinhua, Lanxi, north Zhuji, River. To the provincial capital Hangzhou hundred years. City in the east, south, north, mountains, north to south and 58.15 km, 44.41 km east to west. Yiwu as a pearl in the Chinese market, improve the investment environment for foreign investment to provide a favorable condition. Yiwu Foreign Trade and Economic Cooperation Bureau has also prepared a "Guide to Yiwu investment projects" to actively promote the industrial investment.

2.THE CONCEPT OF JV
The Sino-foreign joint venture is the enterprise that foreign 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 of the venture shall share the profits, risks and losses in proportion to their contributions to the registered capital. 

3.COMPANY NAME
The Yiwu government has a name format for anyone who wants to setup a JV in China, the format is: Yiwu + trade name + business scope+ limited. In China, only Chinese company names are officially used, while English names are for reference only. Any names are subject to the approval of relevant authority..

4. BUSINESS SCOPE
One of the most important issues is to define the business activities of the JV. Business scope is narrowly defined based on many factors, such as trade names, registered capital and business scope. JV can only conduct business within its approved business scope on the business license. Amending the business scope need further application and approval if the name reserve is not successful. For some sectors such as education, logistics, medicine and food industries, pre-approval license is needed before we enter into normal processes.

5. SHAREHOLDER, DIRECTOR, MONITOR AND LEGAL REPRESENTATIIVE
A shareholder could be acted by legal person( foreign company) or natural person (individual), a director or a monitor could be acted by foreign person or Chinese person. A monitor is appointed to supervise the company’s operation and management. A legal Representative is a person in charge of corporate operation and management and development, responsible for all the legal affairs arising from the business running, the position could also be held by non-shareholder or non-director.

6. REGISTERED AND PAID-UP CAPITALS
1）. In China, the registered capital is different from varied situations and sectors. For the manufacturing enterprise, the registered capital of RMB 1 million or above is usually required. for the trading and wholesaling RMB500,000 or above; for retailing, as low as RMB300,000; for the service sectors, such as consultancy, technology, market research and development, the registered capital is around RMB100, 000 or above; for domestic companies, as low as RMB30,000.
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2）.The JV requires that the invest percentage from foreign investor can not be less than 25% of the registrated capital. The capital to be subscribed in lump sum as contemplated in the Articles of Association shall be paid up within six months from the date of issue of Business License,the capital to be subscribed by installment as contemplated in the Articles of Association shall be paid up within three months from the date of issue of Business License, with the first installment not to be less than 20% of the amount of capital subscription. The capital injection report issued by the CPA is required for the paid-up capitals subscription. The fee of paid-up capital injection will be reduced if the registered capital can be paid in one time.

7. Process
1）、Commissioning process
Fill power of attorney (to confirm the contents) →Submit datas→pay money→Audit Information→sign documents→Submit to Government→tell the Process→finish about 60-80working days→notice customers to receive→Sign
2）、Customer Process
Determine main Investors(company or person)→Both board minutes→Joint Venture Agreement→Government Notary and Embassy Certification of Investors→Banker's reference→company name→business scope→registered capital→shareholders→Appointment of Chinese Legal Representative→China office address(Leasing contract)→Commissioned→remittal of capital from abroad→Verification(if needed) →Handling post-approval(if needed)
3）、Government Process
Nuclear name→Pre-approval certificate like Fire fighting and pro-environment(Production) →Investment approval→company licences→Engraved seal structure→Apply for a business organization code certificate→Apply for countries, land tax registration certificate→Bank License→Capital Account→Basic Account→go to the customs for import and export registration certificate(if needed)

8. DOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES
Part one, documents needed to be prepared from abroad as follows
1. Two copies of the business license or certificate of incorporation of foreign company should be endorsed by local China Embassy or Consulate.;
2. The original and copy of identification documents (ID card, passport) of legal representative, and eight color photos;
3. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version;
4.Latest annual auditing report if the parent company has been set up for more than one year. And the balance sheet if the company less than one year.
 

Part two, documents needed to be prepared from Yiwu as follows
1. Copy of the business license or certificate of incorporation of Chinese company; 
2. Latest annual audit report from Chinese company if it has been set up for more than one year;
3. One proposed name (in Chinese), and provide two or more alternative names in case the first name is not available;
4. Detailed information about the business scope and intended registered capital;
5. Detailed information and valid certificate of legal representative, director, monitor, manager;
6. The lease of commercial office between lessor and lessee needed to be endorsed by the Housing Management Authority. The lessee should be acted by shareholders, directors, legal representative, monitors or manager. The area required is no less than 30 ㎡ and for commercial use only with more than one year’s rent. 

9. DOCUMENTS REQUIRED FOR THE FOREIGN INDIVIDUALS’ ENTERPRISES
1.Original document & copy of identification documents (ID card, passport) of Chinese company's legal representative, directors, monitors and managers;
2. Local lawyer's legalization or notarization of the investor’s passport endorsed by the Chinese embassy or consulate in the investor’s country;
3. Eight color photos of the legal representative;
4. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version;
The documents needed to be prepared from Yiwu are the same one as above for trading enterprises.

10. DOCUMENTS REQUIRED FOR THE MANUFACTURING ENTERPRISES 
Item 1 - 9 the same as above
10. Manufacturing address: house property certificate or the lease of industrial workshop (two original copies of lease with signature and endorsed by Housing Management Authority. The area is required no less than 200㎡ and for manufacturing use only with more than one year’s rent.)
11. Project reports are necessary for the approval by the relevant government department, such as, business service, environmental and fire departments. The safety standard of manufacturing area should reach the required standard set out by the Fire Department and Environmental Protection Department

11. OUR SERVICES
Service charge: RMB16000.TANNET provides one-stop and tailor-made services for foreign companies which would like to set up JV in Yiwu China.
TANNET package services include: foreign investment approval certificate; both original and duplicate copy of business license; both original and duplicate copy of Organization Code License & card; both original and duplicate copy of tax administration license; official seal; legal person seal; finance seal
12. TIME NEEDED
For manufacturing enterprise: it takes 60-70 working days to finish the processing before we get required documents ready, especially the approval papers from the fire service department & human environment committee.
For the trading and service enterprise: it takes 40-50 working days to finish the processing before we get required documents ready.

13. FOLLOW-UP
TANNET can provide a series of follow-up services to customers, such as bank account opening, CPA report, bookkeeping, auditing, monthly tax return and tax layout, annual return services, financial planning and China market study, Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc.

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