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Conditions for Establishing a Sino-foreign Equity JV Foreign Trade Company

Date: 2008-11-12 09:05 | Author: webmaster | From: 本站原创 | Read Times: 19

  With a view to further expanding the opening –up drive ,in 1996 China promulgated and enforced the Interim Meth-ods on Establishing a Sino-foreign Equity JV Foreign Trade Company(hereinafter referred to the Interim Methods),which spell out ex-press stipulations regarding the conditions and procedures for the establishment of a Sino-foreign Equity JV Foreign Trade company
  Based upon the provisions of the Interim Methods, at present a JV foreign trade company, permissionfor whose establishment can be granted, shall contain the following unique features:
  Fist,only foreign companies or enterprises can launch such a joint venture with Chinese companies or enterprises (hereinafter referred to Chinese companies).Foreign private individuals are not permitted to establish JV foreign trade companies with Chinese companies,a requirement different form those applicable to general Sino-foreign equity JVs.
  Second,at present pilot projects are only permitted to be undertaken in Shanghai Pudong New Area and Shenzhen Special Economic Zone;they have not been permitted nationwide.
  Third,the registered capital of a JV foreign trade company shall not be lower than RMB 100 million yuan,among which the percentage of Chinese companies shall not be lower than 51%and that of foreign companies shall be greater than 25%.
  In addition to the above unique provisions,a foreign company establishing a JV foreign trade company shall comform to the following conditions:

1.Over US$ 5 billion in operating revenues one year before the application.;
2.Over US$ 30 million on average in its trade with Chinese in the three years before the application;and
3.It has established a representative office inside the territory of China three years before or it has invested over US$ 30 million in China.
  A Chinese company establishing a JV foreign trade company shall comply with the following conditions:

  1. It has the foreign trade right;
  2. Over US$ 200 million on average in its import and export volume in the three years before the application,among which the export volume shall not be lower than US$ 100million;and
  3. It has set up over 3 branches,subsidiaries and/or equity JVs outside the territory of China and the annual operating revenue of its overseas enterprises shall exceed US$ 10 million in the three years before the application.

    After an equity JV foreign trade company has gone through the examination of the national foreign economic and trade authorities and obtained the approval of the State Council,the national foreign economic and trade authorities shall issue the approval certificate;Upon presentation of this approval certificate,the Jvforeign trade company shall go through registration formalities.

Furthermore,it should be noted that:

  1. Upon estabishment,the JV foreign trade company shall selfmanage,or ace as agent for,the import and export trade of goods and technology within the approved scope of goods.Without approval,it shall not deal in other business activities.
  2. It shall apply for membership with a chamber of commerce for importers and exporters or the association for foreign-invested enterprises and accept the coordination of the chamber of commerce or the association.

TAG: Sino-foreign Equity JV 代表处 代表机构

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