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In this section you will find information on how to register a Joint Venture, how to handle its accounting, taxation, human resources, office, and the steps to follow during the incorporation process. |
What is a Joint Venture?
A Joint venture is a company set up and invested by Sino and foreign investors. It effectively uses the advantages of local enterprises.
However in China, some industries invested by foreign investors can only be in the form of joint venture, and the quantity of such limited industries is decreasing consistently.
In the step by step tab, you can find the procedures for all types of joint venture.
If you would like to know more about the various aspects of setting up and running a Joint Venture in China, you can contact us via livechat, email or phone for more information.
You can also request a quote for the following services:
If you would like to find out more information about the industry you want to join in China, please visit our market-entry services section.
Tax & Accounting
All foreign invested organizations in China, including Joint Ventures, are subject to tax declaration, including enterprise income tax, business tax, individual income tax, stamp tax, value added tax etc.
The kind of taxes applicable and their level may vary for different organizations due to their business scopes and operations.
If you would like to know more about the various aspects how to deal and manage tax & accounting for a JV in China, you can contact us via livechat, email or phone for more information.
You can also request a quote for the following services:
If you would like to find out more information about the industry you want to join in China, please visit our market-entry services section.
Human Resources
Chief Representative of RO in China could be Chinese people or foreigners. But if Chief Representative is a Chinese, he must hold a certification issued by a human resource company which provides service for foreign companies and also regulated by the government. RO could hire Chinese employees or do business by itself. But the human resources management must be controlled by human resources organization which is regulated by the government. Generally speaking, in Beijing and Shanghai, the wage of an employee who works with English is as follows: The salary of a SEC is no less than 3000RMB per month, an accountant or a legal consultant is no less than 4000RMB per month, a marketing sales is no less than 5000RMB per month, a department manager is no less than 8000RMB per month. Different requirements determine different salaries. RO should bear the employees' social insurance premiums and housing fund if Chinese are hired. This amount is equal to 50% of an employees' salary and partially paid by the employee, but most part of it should be born by the employer. Details are as follows:
| I. Social insurance (take Ceiling 2008 for example, implemented in line with relevant policies of the state) | |||||||
| S.N. | Item | Ceiling(2008) | Pay by enterprise | Pay by individual | Charge | ||
| % | Amount | % | Amount | ||||
| 1 | Pension insurance | 9,966.00 | 20.00 | 1,993.20 | 8.00 | 797.28 | 2,790.48 |
| 2 | Unemployment insurance | 9,966.00 | 1.50 | 149.49 | 0.50 | 49.83 | 199.32 |
| 3 | Medical insurance | 9,966.00 | 10.00 | 996.60 | 2.00+3rmb | 202.32 | 1,198.92 |
| 4 | Work injury insurance | 9,966.00 | 0.50 | 49.83 | - | - | 49.83 |
| 5 | Maternity insurance | 9,966.00 | 0.80 | 79.73 | - | - | 79.73 |
| 6 | Housing fund | 9,966.00 | 12.00 | - | 8 or 10 | - | Payment by separate account |
| Subtotal of social insurance | Remarks: | Enterprise shall set the ceiling based on the average salary of personnel of last year. Ceiling of social insurance shall be adjusted in every April in line with relevant policies of the state Ceiling of housing fund shall be adjusted in every July in line with relevant policies of the state | 4,318.28 | ||||
Chinese government do not have the requirement of paying social insurance premiums for foreign employees nor regulations about the salary of Chief Representative. However, this salary should be correspond with the practical minimum that is required by the government and the Taxation Bureau. This minimum is no less than the incomes of a foreign employee from foreign countries which is equal to 15,000RMB per month, a Chinese employee's incomes per month.
The Office
An address for the JV office is demanded. This address should be the official business office. The houses of a foreign organization or an individual are not allowed to be offices.
However, if the office for the JV is required for management/practical purposes to be on the hosting company's premises, it is possible to register the JV's office there admitting that the office used has a different official legal address. If the facilities of the hosting partner are not registered with the Industrial and Commercial Bureau, it is possible to apply with the same for such separation of legal addresses.
In China, different cities have different office requirements and the rent is different, too. In Beijing and Shanghai, the rentals are the highest, from 1.5RMB to 12RMB per sq.m. per month. An apartment with one bed room is at the rent of over 4,000RMB per month, with two bedrooms is more than 6,000RMB per month , with three bedrooms is more than 8,000 RMB per month.
How to find it? Chinasolution can help you to obtain information from the leasing agency, avoiding you the hassle of being cheated.
Contact us via livechat, email or phone for more information.
JV Step by Step
Below you can find a list by business scope category of the procedures needed to set up a Joint Venture in China. Though the steps are complete and accurate, we invite you use our services rather than attempting yourself. We can save you time and long, stressful queues.
