Establishment of a Joint Venture in the PRC

Under the law of the People’s Republic of China (“PRC law”), joint venture companies can legally be structured either as an Equity Joint Venture ("EJV") or as a Contractual (or Cooperative) Joint Venture ("CJV").

The legal basis for the establishment of an EJV are both the PRC Law on Sino-foreign Joint Equity Enterprises (last revised on 15 March 2001) and the Regulations for the Implementation of the PRC Law on Sino-foreign Joint Equity Enterprises as amended on 22 July 2001.

CJVs are subject to the PRC Law on Sino-foreign Cooperative Enterprises updated on 31 October 2000 as well as the Detailed Rules for the Implementation of the PRC Law on Sino-foreign Cooperative Enterprises of 4 September, 1995.

The establishment as well as the Joint Venture Contract and the Articles of Association of joint ventures are mandatorily subject to PRC law.

Please PDF the Guide for more detailed information.