Setting up a JV in Tianjin China

Setting up a JV in Tianjin China

Hotline: 86-755-82143348, Email:[email protected]

JV refers to joint venture. Setting up a JV in Tianjin is also called setting up a joint venture in Tianjin.

Definition:

It is a liability limited company held by both shareholders from China and from overseas.

Before 2020, the Chinese shareholder or shareholders must be a company or some companies and can not be an individual or some individuals, while foreign shareholder or shareholders can be either company/companies or individual/individuals.

From January 1, 2020 on, the new policy has been carried out that there is no more requirement about the Chinese shareholder/shareholders being company/companies. That is to say, Chinese individuals are allowed to set up a liability limited company with foreign investors.

Numbers of shareholders:

There should be at least one shareholder from China and at least one shareholder from overseas. And the maximum is 50 shareholders in total for a liability limited company.

Restricted business activities:

Most business activities are available for foreign invested companies. The popular types are trading, technology, service, and manufacturing. But business related to education and medicine is restricted.

Documents needed:

1.     Legalization of investing company or individuals from overseas;

2.     ID card of Chinese individual shareholders;

3.     Business license of Chinese corporate shareholders;

4.     Tianjin registered address;

5.     Tianjin company name, registered capital, and details of business scope;

6.     Appointing management staff for Tianjin company.

Timeline: One week

Taxation:

There are mainly two kinds of tax for a company in mainland China. One is business profit tax and the other is VAT tax.

When the company is a small scale taxpayer, the VAT is 3% upon the company income. And the business profit tax will be 5% when the annual turnover is less than RMB 1 million. The business profit tax will be 10% when the annual turnover is between RMB 1 million to RMB 3 million. The business profit tax will be 25% when the annual turnover is higher than RMB 3 million.

When the company is a general tax payer, the VAT is 13% upon the company income for the trading type. And the business profit tax would be 25%.

For more information about JV setup in Tianjin China, please do not hesitate to contact us by calling 86-755-82143348 or 86-13530066130, or mailing to [email protected].