Conditions for the creation of a joint venture in China
A joint venture must take the form of a limited liability company (LLC)
No minimum capital is required.
The proportion of the investment contributed by the foreign joint venturer(s) shall generally not be less than 25% of the registered capital of a joint venture.
It is possible for the partners to make investments, either in cash, through technology or industrial rights.
A joint venture is managed by a board of administrators and managers.
Drawbacks of a joint venture
– Cultural integration, a factor for success, can be very slow and difficult;
– You do not have total control over the commercial entity, and will have to deal with occasional disagreements with the partner;
– This “marriage” requires adapting the organizational structure in order to manage effectively and avoid conflicts.
Launching a joint venture in China necessitates a very thorough understanding of local customs. By collaborating with INS Global Consulting, you receive the advice and expertise of an experienced and effective company. Since 2006 we have been enabling numerous companies to access the Chinese market through joint ventures that have ensured their success in the country.