strategy4china: Establishing Sino-Foreign JV

In accordance with the laws and regulations of the People's Republic of China foreign economic organizations or private businessmen and Chinese companies willing to jointly establish a Sino-foreign joint venture or Sino-foreign cooperative venture (hereinafter called a foreign invested enterprise) shall apply for examination and approval to the related industry administrative office and relevant office of the Cooperation Department of Foreign Economic and Trade Commission as stipulated by the industry and investment regulations. Beijing Foreign Investment Service Center (hereinafter referred to as "the Center") is authorized to provide the following services to the investors drawing up the necessary project documents and to acting as an agent to handle the examination and approval procedures.

2. Required documents and procedures

Letter of intent signed by Chinese and foreign parties (the Center can assist in drafting the letter)

Project proposal (the Center can assist in drafting the proposal

Feasibility study report (including the companies� backgrounds, market analysis, economic study and forecast etc.)

The copies of legal document sanctioning operations of the Chinese and the foreign party in the country or region where the companies operate. Private investors shall provide identity documents. The Chinese party is obliged to provide the copy of the business license with a stamp of the authority, which has issued it.

Bank reference for the investor provided by the bank of the country or region in which the investor operates. Reference letter shall, among other information, state clearly the reputation of the flexing capitals of the investor after the opening of the account. The bank reference shall be signed by the person in charge or business manager of the bank. The Chinese party shall submit the funds credibility document issued by the higher financial authorities or letter of reference provided by its bank. If the Chinese company is a limited liability company it shall also submit the original of the same year assets evaluation issued by a certified public accountants' firm

The venture contract and the articles of association (the Center can assist in drafting the documents)

The original of credentials of members of the venture's board of directors signed by the chairman of the board or the general manager of the investing company.

The resumes of the foreign members of the board of directors including the education and the professional experience. The foreign members of the board of directors shall also submit the copy of the passports, the compatriots from Hong Kong and Macau SAR shall submit the copy of returning home certificate.

The copy of the lease agreement for the company's office. Leasing period for the office shall be at least one year.

Fees:
The fee is 0.3 % of the total investment. The Center will be responsible for handling all approval formalities involved. The procedures for obtaining the business license last for two months.

For the investment projects of 500, 000 USD or less there is a flat service fee.
The Center is responsible for handling of all the procedures involved until the business license is obtained.

3. Other procedures

After receiving the business license the foreign invested enterprise shall undergo the following procedures (the cost of each of the procedures is 850 RMB not including the fees collected by the government authorities concerned).

Apply to the Public Security Bureau for the official chops (legal representative chop, enterprise chop, chop for use in financial matters, contract chop, chop for use in contacts with customs office, etc.)

Open an account in the bank

Verification of the enterprise's capital (there is a separate fee for that service)

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