Advantages:
1. Get advanced management experience of the joint venture.
2. the funds obtained from the joint venture can be used to expand the scale of the enterprise.
3. Obtain intangible assets (such as brands) and marketing channels of the joint venture.
Disadvantages:
1, the reduction of control rights, in many things, is bound to be interfered by the joint venture partner.
2. Cultural integration is difficult.
3. The number of supervised departments has increased, and the number of reported objects has increased.
State-owned enterprises refer to state-owned enterprises, wholly state-owned enterprises and state-owned capital holding companies, including central and local state-owned enterprises, which perform the responsibilities of investors on behalf of the State Council and local people's governments. Enterprises supervised by assets supervision and administration institutions and other departments. This is a company that has formed graded investment.
A foreign-invested enterprise refers to an enterprise invested and operated by a Sino-foreign joint venture, which shares the risks and profits and losses in proportion to the investment. Its main legal features are: the proportion of foreign companies in the registered capital of enterprises has legal requirements; Enterprises adopt the organizational form of limited liability companies. Therefore, this joint venture is called a joint venture.
If the business scope of the invested enterprise belongs to the encouraged or permitted field, it shall go through the registration formalities directly with the administrative department for industry and commerce without going through the examination and approval procedures. According to Article 8 of the Law, the administrative department for industry and commerce shall issue the Business License of Enterprise as a Legal Person, and add the words "investment by foreign-invested enterprises" in the column of enterprise category. There is a similar provision in article 15 1 of the law. Therefore, the enterprise does not have the approval certificate of foreign-invested enterprises and does not belong to foreign-funded enterprises.
If the business scope of the established company involves restricted areas, the foreign-invested enterprise shall go through the examination and approval procedures at the provincial examination and approval authority according to the prescribed procedures, and then go through the formalities of change registration at the Industrial and Commercial Bureau.
Among them, according to the provisions of Article 18 of this Law, if the proportion of foreign investment in the registered capital of the invested company (I think it should also include companies established by reinvestment) is not less than 25%, the examination and approval authority shall issue approval documents to the applicant, issue approval certificates for foreign-invested enterprises, and note the words "investment by foreign-invested enterprises". Therefore, if the proportion of foreign investment is less than 25%, it is a domestic-funded enterprise; If the proportion of foreign investment reaches 25%, the enterprise has the approval certificate of foreign-invested enterprise and belongs to foreign-invested enterprise.
State-owned joint ventures are enterprises invested and established by the state, enterprises and individuals as legal person investors. When the enterprise is established, all the assets invested by the owner are recorded as paid-in capital. The organizational form of a state-owned joint venture is a limited liability company.
Generally speaking, a Sino-foreign joint venture is an enterprise jointly funded by China investors and foreign investors, which is operated by them and is self-financing. 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.