By continuing you agree to eChinacities's Privacy Policy .
Sign up with Google
Sign up with Facebook
Q: What's the minimum required start-up capital for a joint venture in China?
I'm toying with the idea of starting my own business next year. Just something small for now that would require renting a store space. I would most likely set this up with my Chinese husband as I heard that wholly-owned foreign enterprises are very complicated and costly to register. Would 100,000 RMB be enough to register as start-up capital, or what is the minimum requirement?
10 years 33 weeks ago in Business & Jobs - China
The start up funding is depending on what the company would do. E.g. if you are going to cast metal parts you are expected to be able to buy a stock of material for that, machinery etc with the startup capital. If you want to start a cleaning company your startup capital needs to cover the expense of a plastic bucket and a mop.
WOFE is not that difficult if you have a trusted Chinese speaking person to help you. On the other hand, the JV is probably easier and since it is your spouse the risk of getting ripped off is lower (I have only heard about that happening a couple of times, here in town, the last couple of years)
Please note that what you are talking about is not a JV. Joint Venturing is when two existing companies come together to complete a certain project e.g. foreign company supplies design plans and capital, Chinese company supplies factory facilities and workers, then profits are divided accordingly. Two people coming together is an equity partnership and can certainly be registered for the minimum capitalization level of 100,000 rmb.
Moonlake:
Thanks. The fact that I didn't know the correct terminology is an indication of how clueless I am. I'd really like to start my own business but I'm so uninformed. I really hope I can find accessible, reliable info about opening a business in China somewhere. I have a lot of studying to do!
Please note also that WFOE's are no harder or more expensive to register. That is a complete fallacy. The advantage of having a Chinese partner is that communications paths, form filling, understanding the endless bureaucracy, opening bank accounts etc. are all easier.
Scandinavian:
I wonder if this fallacy is implanted in this world to allow more partnerships where the Chinese side can rip of the dumbass foreginers.
Kaiwen:
Yes, local governments prefer all businesses to be at least part Chinese owned and always prefer the Chinese partner to be the company legal representative on the business licence. There are many reasons for that but all of them give greater advantage to the Chinese.
bill8899:
Perhaps the reasons include an opportunity to put a Chinese in an advantageous position.
A bloody good Lawyer is the first thing you need
Kaiwen:
I would argue that a good accountant with strong relationships with the local government is far more important.
