Registration of a Joint Venture in China

A joint venture with a Chinese partner is the optimal way to enter sectors restricted for foreign companies, such as hotels, logistics, education, and the automotive industry. We organize JV registration from A to Z: legal support, partner selection, coordination, and interaction with all authorities.

What is a Joint Venture (JV) in China

To access industries closed to foreign businesses (automotive, education, hospitality, etc.), many foreign investors choose a JV — a form of cooperation between a foreign and Chinese company. The government encourages the consolidation of resources, technology, and management experience from both sides.

Types of Joint Ventures

Equity Joint Venture (EJV)

Created through shareholding: the foreign investor contributes at least 25%, and up to 70% (or up to USD 3 million). Contributions may be in the form of cash, assets, or technologies (subject to independent valuation). Penalties may apply for untimely contributions.

Cooperative Joint Venture (CJV)

A contractual joint venture may have limited or unlimited liability.

For limited liability structures, the requirements are similar to an EJV, including contribution obligations and share distribution.

For unlimited liability companies, capital contributions, asset transfers, or technology usage are recorded in the agreement — management and return on investment are contractually defined.

How a JV helps to enter the Chinese market

A joint venture allows you to:

• do business in sectors closed to WFOE — for example, automotive, hospitality, chemicals;

• gain local access to resources, personnel, production sites, and distribution channels;

• avoid bureaucracy thanks to the experience and contacts of the Chinese partner.

Advantages and disadvantages of a joint venture

Pros:

• Local resources — infrastructure, personnel, distribution;
• Fast entry into restricted sectors;
• Risk and cost sharing.

Cons:

• Dispersed control, potential partner conflicts;
• Uneven profits and risks;
• Potential risk to intellectual property.

Regulatory and tax liability of a JV

• Each partner is taxed individually: as an individual entrepreneur (IE), legal entity — corporate tax.
• Taxes are paid at the place of the company’s operations and each partner’s registration.
• Distribution of income is specified in the founding agreement — if absent, profits are distributed proportionally to the contributions of each partner.

What is needed to register a JV in China

1. Search and selection of a reliable Chinese partner;
2. Agreement on the JV form: equity or cooperative;
3. Drafting of agreements defining shares, responsibilities, and management models;
4. Preparation of documents for both parties;
5. Registration of the JV with Chinese authorities, capital contribution, account opening.

Move to Agency supports you at all stages: from negotiation to interaction with MOFCOM (Ministry of Commerce of the People’s Republic of China), SAFE (State Administration of Foreign Exchange), tax, and banking structures.

Why choose Move to Agency

• Deep understanding of the Chinese market — we help choose the optimal JV structure considering your sector, region, and investment size.
• Reliable selection of Chinese partners — only trusted and verified companies.
• Full cycle of services — from JV structure analysis to company setup and support.
• Negotiation support — we participate in communication with Chinese partners, MOFCOM, and SAFE.
• Paperwork and registration — we handle business registration, document preparation, translation, notarization, and tax filing.

FAQ

1. What is a Joint Venture in China?

A Joint Venture (JV) is a form of cooperation between a foreign and a Chinese legal entity that allows doing business in sectors closed to 100% foreign ownership. A JV is established through an agreement and is registered with Chinese government authorities.

2. Which form of JV is better — Equity or Cooperative?

If ownership and legal entity status are important to you, then an Equity Joint Venture is suitable. If you prefer flexibility, separate accounting for investments, and special conditions for profit distribution, then a Cooperative JV is the better choice.

3. Is it necessary to contribute the registered capital immediately?

It depends on the JV form and the terms of the agreement. In an Equity Joint Venture, usually at least 25% must be contributed. In a Cooperative JV, the parties can agree on an individual schedule or contribute non-monetary assets (equipment, technologies).

4. Can I choose a partner myself?

Yes. You can propose your own Chinese partner or use our database of verified companies. We also conduct due diligence upon your request.

5. How long does it take to register a JV?

On average, registration takes 2 to 3 months, including agreement preparation, MOFCOM registration, obtaining a license, opening bank accounts, and tax registration.

6. Can I control the management of the joint company?

Yes, the management structure, signing authority, responsibilities, and exit strategy from the JV are all defined in the agreement. We help legally protect your share and interests.

7. What taxes does a JV pay in China?

A joint venture pays VAT, corporate income tax, and social contributions for employees. A foreign investor may also be subject to dividend tax when profits are distributed. We help optimize the tax burden.