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JV Registration
In China

Want to pool the resources and expertise together with your Chinese business partners for mutual success? Hongda helps to take care of everything to form a Joint Venture in China.

What is a Joint Venture (JV) in China?

While the Chinese government is continuously opening various categories of industries for foreign investors, there are still limitations and restrictions in specific areas for foreign companies without a Joint Venture partner.

However, the Chinese government encourages local corporations to join together with foreign investors to integrate technics, investment, and management experience, while foreign companies obtain easier access to the market and expand their market share.

Thinking of opening a JV? 

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Types Of Joint Ventures In China

There are two forms of Joint Venture partnerships between foreign and Chinese corporations recognized by the Chinese government: equity joint venture and Cooperative joint venture, depending on investment method and liability.


Equity Joint Venture

An equity joint venture (EJV) is formed by the contribution of equity from both foreign and Chinese partners on the principle of mutual benefits and limited liability. The foreign investors need to contribute at least 25% of the equity of the company. This ratio is subject to increase to a maximum of 70% (up to USD 3 million) depending on the total registered capital of the joint venture. Investment can be in the forms of cash, real estate, industrial property, equipment, or technology, whose “market value” needs to be assessed by an independent third party. Failure to land the investment capital within a certain time window may lead to a penalty of fines.


Cooperative Joint Venture

Cooperative Joint Venture (CVJ), so known as a contractual joint venture, comes into two forms: limited liability or unlimited liability. The requirement and regulations of forming a limited liability CJV are very similar to that of an EJV. The foreign entity should provide the majority of the funds and technology, whilst the  Chinese partner contributes land, facilities, natural resources, manpower, and a limited amount of money. Compared to EJV, the major difference is that there is no minimum capital requirement for foreign investors.

The unlimited liability CJV is starkly different from EJC and 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. What‘s more, 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 dependent on equity stakes, the foreign partner may also recover their investment in the event that the joint venture ends and reverts 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. If you are planning to operate in those limited areas, you still need to cooperate with a Chinese partner to form a joint venture.


Everything You Need To Do


Consult and confirm proposal

Book a free consultation with our experts and receive our comprehensive proposal for you to confirm.


Contract Signing and make payment

Sign the service contract and make payment.


Preparing Documents

We will send everything that you need to prepare, not hard at all.


Wait for the good news

Leave rest of the work to Hongda and we will inform you in 1-2 weeks.


Rent office space

Registered address

Online registration via


Company Seals

Seal engraving for the 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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