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Sino-foreign Cooperative Joint Venture (CJV)
Sino-foreign cooperative joint ventures, also called Sino-foreign contractual joint ventures, are enterprises jointly established by foreign companies, enterprises, other economic entities or individuals and Chinese companies, enterprises or other economic entities, according to their conditions for cooperation, within the territory of the PRC, in accordance with the principles of equality and mutual benefit, and subject to approval by the Chinese government.
CJV is based on a contractual relationship. A CJV may be either a limited liability joint venture with the status of a Chinese legal person obtained according to law, or an unlimited liability joint venture in a non-legal person form, similar to a partnership. |
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The rights and obligations of the parties participating in the venture, including the provision of investment and conditions for cooperation, the distribution of profits or products, the sharing of risks and losses, the form of operation and management and the ownership of the property at the time of the termination of the CJV, are all defined in the contracts signed by the parties.
Any transfer of rights must be agreed by the other party to the JV and approved by the examination and approval authority. Both parties should perform their respective obligations under the Contract.
Documents Required & Registration Procedures of CJV are similar to EJV
Exemplification
Documents for Approval of Establishment of Foreign-funded Enterprises
When applying for the establishment of a joint venture, the Chinese and foreign participants in the joint venture shall jointly submit the following documents to the examination and approval authority:
- Application for the establishment of a CJV;
- The feasibility study report jointly prepared by the participants;
- CJV agreement, contract and articles of association signed by the representatives authorized by the participants;
- List of candidates for chairman, vice-chairman and directors appointed by the participants;
- Specific regulatory requirements in other documents and other documents required licensing bodies (including: the notification of name pre-approval; duplicate proof of subject qualification or proof of identification as a natural person for investors. The Proofs above should be certified by a notary public, and authenticated by the Chinese embassy or consulate of the country of investors. The Proofs above of Hong Kong, Macao or Taiwan Investors should be certified by their native legal notary public; photocopies of documents of appointment and duplicate proof of identification (or passport) for legal representative; the Business License or the Registration Certificate (one copy on Chinese party), the bank credit certificates for both parties, pre-approval documents by planning or department or industry management department etc.).
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