I. Benefits of registering a Sino-foreign joint venture
1. The emergence of a joint venture company is conducive to reducing the investment amount of investors, reducing investment risks, and at the same time enabling them to have more liquidity for other investments;
2. The emergence of joint venture companies is conducive to adapting to different market demands, because both parties can gain management experience and product technology in different industries with the same investment;
3. The emergence of joint venture companies is conducive to expanding the scale of enterprises. Thanks to the investment of both parties, the capital and technology of the joint venture will be greatly improved, and it will be easy to expand its scale.
4. The emergence of joint venture companies is conducive to expanding the sales channels of enterprise products. Every enterprise has its own sales channels, and the joint investment of both parties makes its channels share and link, which can expand sales channels faster.
Second, the characteristics of Sino-foreign joint ventures
1, registered according to law. Take the Joint Venture Law, Company Law and regulations as the legal basis for the establishment of the company.
2, the implementation of the examination and approval system. A joint venture must be jointly established by Chinese and foreign investors. The project must be approved by the government examination and approval authority.
3. Limited liability. Organizational form of joint venture limited liability company.
4. * * * with the management.
5, production and business activities into the national special norms. If equipment and raw materials can be purchased from the international market; Direct export of their own products and so on. Have certain advantages.
6. Located in China, it is a legal person in China.
Three. Term of Sino-foreign joint ventures
1. If the joint venture to be established belongs to the following industries, the parties to the joint venture shall stipulate the joint venture term in the joint venture contract in accordance with the provisions of relevant state laws and administrative regulations. These industries include:
(1) Service industries, such as hotels, apartments, office buildings, entertainment, catering, taxis, color film processing, image processing, maintenance and consulting.
(2) Engaged in land development and real estate management;
(3) engaging in resource exploration and development;
(4) Projects with restricted investment as stipulated by the state;
(five) other laws and regulations of the state require an agreement on the duration of the joint venture.
The term of a joint venture is generally 30 years. For projects with large investment, long construction period and low capital profit rate, the joint venture period can be extended to 50 years for projects with advanced technology or key technology provided by foreign parties to produce cutting-edge products. With the special approval of the State Council, it can last more than 50 years.
2. For a joint venture that belongs to projects encouraged and allowed by the state to invest, except for the above-mentioned industries, the parties to the joint venture may stipulate the term of the joint venture in the joint venture agreement or contract, or they may not stipulate the term of the joint venture.
3. If the parties to the joint venture agree to extend the term of the joint venture, they shall apply to the examination and approval authority six months before the expiration of the joint venture. The examination and approval authority shall decide whether to approve or not within 0 months from the date of receiving the application.
Termination of the joint venture. After the dissolution of the joint venture, the remaining property after liquidation and repayment of debts shall be distributed in proportion to the capital contribution.
Three. Principles of Sino-foreign joint ventures
1, the principle of national sovereignty. Namely, the principle of inviolability of national jurisdiction. The establishment, operation and termination of the enterprise; We must abide by China's legal concept.
2. The principle of protecting the legitimate rights and interests of investors. Foreign capital, industrial property rights and personal rights are inviolable; According to the law, the profits are remitted abroad.
3. The principle of equality and mutual benefit. Mainly reflected in the settlement of the investment relationship between the two parties, whether to follow the rules stipulated in the contract and articles of association to deal with the problem.
4. The principle of reasonable profit. Reasonable concessions are mainly made by the government in the development of joint ventures. A supportive policy adopted in a specific era, such as investment preference, tax reduction and exemption, raw material import, product export, foreign exchange use, etc.
5. Follow the principles of international rules. Such as organizational form, management mode, corporate finance, etc.
According to the law, we can know that the benefits of registering a Sino-foreign joint venture mainly include reducing the investment amount of investors, reducing investment risks, and enabling them to have more liquidity for other investments.