Archive for the ‘Joint Venture ("JV")’ Category

About Setting Up an English School in Shanghai

Monday, October 15th, 2007

By Vincent Cheung from www.pathtochina.com   

Ministry of Education of China makes it mandatory for all of the students from elementary to college to take English courses, whereas Chinese courses receive far less attention. This is the status quo in China. English is ridiculously given way to much importance, and everybody seems to plan to learn it but only a pathetically small proportion of them have a clue what to do, meaning the rest of them might need your professional help. Have any idea how big China’s English education market is? There are roughly over 300 million of English learners currently and the annual market volume is like 15 billion yuan. It’s still growing at a remarkable rate and till the end of 2010, the market volume will rise to 30 billion yuan! In my eyes, China’s English training market can keep booming for at least ten years until the number of new generation of youngsters who benefit from the new English education methods in Schools and therefore are with much satisfactory English proficiency climb to a considerably high level. So, don’t hesitate to enter world’s biggest English training market.

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Ratio of Joint Venture’s Registered Capital to Total Investment Amount in China

Thursday, September 27th, 2007

Contents  Extracted from “Guide to Doing Business in China”

1For JVs with a total investment of US$3 million or less, the registered capital should account for at least 70% of the total   investment;

2. If the total investment is over US$3 million but less than or equal to US$10 million, the registered capital should account for at least 50% of the total investment; the registered capital should not be less than US$2.1 million if the total investment is under US$4.2 million;

3.If the total investment is over US$10 million but less than or equal to US$30 million, the registered capital should account for at least 40% of the total investment; the registered capital should not be less than US$5 million if the total investment is under US$12.5 million;

4. If the total investment exceeds US$30 million, the registered capital should account for at least one-third of the total (more…)

Provisions for the Alteration of Investors’ Equities in Enterprises with Foreign Investment

Thursday, September 6th, 2007

 From www.fdi.gov.cnArticle 1 These provisions are formulated hereby pursuant to the Company Law of the People’s Republic of China, the Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures, the Law of the People’s Republic on Foreign-capital Enterprises and other pertinent laws and regulations to promote the healthy development of enterprises with foreign investment, protect the legitimate rights and interests of investors, and maintain social and economic order.


Article 2 “Alteration of investors” equities in enterprises with foreign investment as used in these Provisions refers to alteration of investors of Sino-foreign equity joint ventures, Chinese-foreign contractual joint ventures, enterprises with foreign investment set up on the territory of the People’s Republic of China (hereinafter referred to as the enterprise) or their shares (hereinafter referred to as equities) of investment in the enterprise (including terms of cooperation they provide). It will include, but will not limit to, the following major factors leading to alteration of investors’s equities in enterprises with foreign investment:
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