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JV Registration
In China

No stress. Hongda’s experts take care of everything for just one conference call: WFOE setup, and run one year of bookkeeping to keep you compliant.

What Are Joint Ventures In China?

While the Chinese government is opening an increasingly large number of industries to foreign investment, there remain many still closed to foreign companies without a Joint Venture partner. In this instance, the Chinese government encourages local companies to work with foreign partners to gain technology and management expertise, while the foreign companies gain early access to the Chinese market and the ability to secure more or existing market share.

Thinking of opening a JV? Get help now.

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Types Of Joint Ventures In China

China recognizes two forms of Joint Venture partnerships between foreign and Chinese firms. The first of these is the EJV or Equity Joint Venture with limited liability and in which the foreign partner invests no less than 25% of the registered capital of the new entity. The second type of joint venture is the CJV or Cooperative Joint Venture, which itself has two versions, limited and unlimited liability, where the former does not require a new entity to be formed and where both parties both assume unlimited liability.

Equity Joint Ventures

Equity Joint Ventures provide a means by which foreign and Chinese companies can collaborate on projects within China with limited liability, where the foreign and Chinese partners contribute to the equity in the venture in alignment with their shareholdings. In this kind of joint venture, the minimum that a foreign investor can contribute is 25% of the equity in the company, which increases depending on the total registered capital investment of the joint venture up to 70% for companies with less than USD 3 million in registered capital. This capital is to be invested within a certain time-frame with failure to invest within the term incurring a penalty. There is no minimum capital requirement for the Chinese partner in the joint venture.

Cooperative Joint Ventures

Cooperative Joint Ventures come in two forms, limited and unlimited liability. In a limited liability CJV, the regulations are very similar to that of an EJV above in that the foreign entity will typically provide the majority of the capital whereas the Chinese partner will provide land, structures, and staff within China. The key difference between the EJV and limited liability CJV is that there are no capital minimums placed on the foreign partner, enabling that company to take a minority shareholding in the venture.

The unlimited liability CJV is starkly different from both the EJV and the limited liability CJV. Unlike the former, an unlimited CJV provides a means by which a negotiated partnership can be affected by two partners. In this way, a foreign partner can provide capital or expertise that is not directly tied to equity in the partnership. What this means, is that the partner can take a minority stake in the partnership. Whatsmore, the partners do not need to establish a new entity to represent them; both partners in the joint venture provide funds, assets, and technology directly in line with the articles of the joint venture, including levels of management. As control of the partnership is not dependant on equity stakes, the foreign partner may also recover their investment in the event that the joint venture ends and reverts back to the Chinese partner, so long as those terms are written in the articles at the start of the venture.

Are Joint Ventures Even Necessary Today?

There remain many industries that are closed to foreign companies in China, often on the grounds of heritage or national security. For instance, hospitality, chemical, and automotive companies.



Doing business with HONGDA is getting a share in our know-how, expertise and dedication. Our determination leaves our customers with peace in mind, as they know our passion and strive for perfection in all that we do.

To ensure that we keep pushing the boundaries of what our market can expect, we relentlessly strive for increased benefits of doing business with HONGDA. To declare our efforts, our daily work is based on 4 tangible, practical promises to our customers - and just as much to ourselves.



Rent office space

Registered address

Online registration via


Company chops

Chops for the new company




Issue contracts and hire employees

Apply for name

Approval and registration

Business license

Apply for a "5 in 1" business license from AIC

Bank account

Opening of bank account

Special Licenses

Customs and import-export Registration - Only Trading WFOE


Sound United

Jack Peng
Sound United Vice President > Asia Pacific

Sound United la leading desianer and manufacturer of consumer audio products in the us) has been usina Honada Business Services since2013 Moving one's operations to China is not a small task, but Hongda's expertservices helped us set up a company and deal with tax issues so we could get on with qrowing our business inno time at a!l, and that's whywe continue to use them today.

Business service Guid

Hongda Business Services helps foreign businesses looking to establish in the PRD (Pearl River Delta, Guangdong), Shanghai and Hong Kong take advantage of everything that China has to offer. We typically work with companies in Shenzhen, Guangzhou, Zhuhai, Zhongshan, Shanghai, and Hong Kong.


How do I set up a company in Shenzhen or the PRD?

Prepare the shareholder certificate, letter of good standing from the bank. Find an office in China. Make the application (of course better find a professional agent in China to help you).

Do I need to have a foreign company to start a company in China?

No, you could also use your personal name to start the company in China.

What are the drawbacks of a WFOE / rep office / JV?

Rep.Office:High tax, could not hire Chinese employees directly.

WFOE/JV: Slow registration time.

The benefit of all is that if you aim to run a business in China, any will allow you to do so. 

Do I need to personally go to China to set up the company?

No, you dont. Hongda Business Services
can help you to do this while you are abroad.

Do I need an actual office space to register a WFOE / rep office / JV?

Luckily now, you dont. Hongda Business Services can provide the office address for registration. 

Which documentation do I need for a WFOE / Rep Office / JV?

Oversea investor's certificate, bank reference letter and office in China are the key documents for each company type. 


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