1. A joint venture refers to an enterprise invested and established in the name of a country, an enterprise or an individual as a legal person investor. When the enterprise is established, all the assets invested by the owner are recorded as paid-in capital. Generally speaking, a Sino-foreign joint venture refers to a Sino-foreign joint venture that is jointly funded by China investors and foreign investors and jointly operated by them, sharing losses and risks. Foreign investors can be enterprises, other economic organizations or individuals. China joint venturers are limited to enterprises and other economic organizations, excluding individuals and individual enterprises. With the approval of the examination organ, the joint venture is a legal person in China, which is governed and protected by the laws of China. Its organizational form is a limited liability company. The joint venture cannot issue shares yet, but it will share the profits and losses in proportion to the investment of the parties to the joint venture.
2. An affiliated enterprise refers to an economic organization composed of two or more enterprises or institutions with the same or different ownership, and the investment is made by the same investor on the principle of voluntariness, equality and mutual benefit. There are many specific forms of joint ventures, which can be developed horizontally or vertically according to the ownership nature, region and industry of the enterprises. Joint ventures generally form joint ventures facing the outside world. Joint ventures enjoy certain preferential treatment according to the amount of investment. The realized profits are distributed to all investment units according to a certain proportion. The formation of joint venture is the objective requirement of technological progress and social production development, and it has great advantages.
Tips: The above contents are for reference only.
Response time: 2021-1-11. Please refer to the latest business changes announced by Ping An Bank in official website.