What is a common business?
The joint -owned company (EJV) is a partnership between the Chinese company and the foreign entity established for the purpose of operating a business in China. The partnership is a new entity that is permitted under Chinese law. There are many ways to enter the Chinese market, but EJV is a structure preferred by both the Chinese government and local companies. auspices. However, establishing operations in China is a more complex process for businesses from most other countries in the world. EJV facilitates the introduction of operational presence in Children, that a partner with a Chinese company will be to create a new, jointly owned business. The government prefers this type of arrangement because it allows Chinese companies to significantly participate in the development of its market and at the same time increase the expertise of the local society through connection with the foreign entity. This expertise will remain a Chinese source long after the partnership has taken place.
6 According to Chinese law, a foreign partner must contribute at least 25 percent of the capital needed to start business, but otherwise the percentage of ownership can be negotiated through the development of a joint business contract. The law allows cash, equipment, ownership rights, vtellucutal ownership rights and buildings to be used as a contribution with their own capital, but unlike most Western corporation laws does not allow working hours or personal services to contribute to the partner's own capital.legally has a common company for its own features some features that are unique to Chinese law unique and unknown under the typical right of corporation in the West. There is a reduction in stocks between these differences. The EJV partner is not allowed to sell their position or shares in the company without government consent. This is a significant difference from the reserves of ordinary corporations that are freely portable. In addition, a partner cannot run his investmentm of the life of the company to choose.
The joint -owned enterprise is structured to exist for the end, usually between 30 and 50 years. It is created by serving articles with the Chinese government. Once the EVJ is registered, it should have domestic privilegiap to other ways that multinational could enter the market. EJV is considered a Chinese legal person who can hire local workers and own land and buildings.