The company can be a JV activity (for example. B Dow Corning), a JV project/asset that targets only a particular project, or a joint venture that aims to set standards or serve as an “industrial enterprise” providing a narrow set of services to operators in the sector. Private equity joint ventures are one of the most common forms of business. These are limited liability companies under Chinese law, which are subject to income tax at a rate of 33%. Ownership and administration are mixed: the subscribed share (not necessarily allocated or paid abroad) varies between 25 and 99%; the direction is entrusted to a Chinese president with a foreign vice president or vice versa. The term is 10 to 20 years renewable from an additional 20 years. The creation must be approved by the government. Subsequently, the State is not empowered to nationalize enterprises, unless there are reasons of public utility in exceptional circumstances and against compensation regulated by law. As part of its activities, a joint venture may directly deflect funds from foreign banks, as it is required to open a foreign currency account with a financial institution accredited by a ministerial agency[3]. A joint venture (temporary association of undertakings) is a contract where by which two or more undertakings agree on cooperation with a view to achieving a specific objective or carrying out a project. The other fundamental document to articulate is that of the articles that are a published document and that are known to the members. This is repeated by the shareholders` agreement on the number of directors that each founder can appoint to the board of directors; whether the board of directors or the founders control; decision-making by a simple majority (50%+1) of those present or by a majority of 51% or 75%, with all the directors present (their alternates/alternates); the provision of funds from the company; the size of the debt; the share of the profit that can be declared as a dividend; etc. What happens is also important if the company is dissolved, if one of the partners dies or if the company is sold.

Investment companies are those that were established in China by a single operation financed from abroad or jointly with Chinese partners that make direct investments. It must be created as a limited liability company. The JV contract, which is accompanied by the statutes of the ITA, are the two most fundamental legal documents of the project. The articles reflect many provisions of the Joint Undertaking Treaty. In case of conflict, priority is given to the COMPANY`s document. These documents shall be drawn up at the same time as the feasibility report. There are also additional documents (called “offsets” in the United States) that cover know-how and brand and supply contracts. Il nuovo soggetto indipendente √® detto co-venturer (si parla anche di incorporated joint venture); Qualora invece l`affare non dia vita ad una nuova azienda con propria personalit√† giuridica si parler√† di unincorporated joint venture oppure contractual joint venture]. . .

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