Starting a Business

According to the Interim Measures Concerning the Ratio of Registered Capital to Total Investment of Sino-Foreign Equity JV Enterprises promulgated by the State Administration for Industry and Commerce (SAIC), it is stipulated that:

 

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


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


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


If the total investment exceeds US$30 million, the registered capital should account for at least one-third of the total investment; the registered capital should not be less than US$12 million if the total investment is under US$36 million


If an FIE is unable to fulfil the above requirements due to special circumstances, it may apply for special treatment to the Ministry of Commerce (the former Ministry of Foreign Trade and Economic Cooperation), which will approve the case jointly with SAIC
 

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