What is the legal process of starting a business venture in China?

Starting a business venture in China requires the completion of a legal process. This process begins with selecting the form of investment that best meets the company’s needs. Foreign investors can choose from four forms of investment: Wholly Foreign Owned Enterprise (WFOE), Equity Joint Venture (EJV), Cooperative Joint Venture (CJV), and Contractual Joint Venture (CJV). In general, a WFOE is selected when the investor wishes to invest in a new business, while an EJV is best for an existing business. The investor must then register the business with the appropriate government agency. Registering the business requires obtaining a business license that allows the investor to do business in the host country. Additionally, the investor must also obtain any required permits and certifications, such as those for environmental protection, tax registration, and labor. The investor must then consider opening a bank account and negotiating the terms of the business venture. This includes determining the amount of capital the investor will contribute, along with agreeing upon the ownership arrangements, profit and loss sharing, and dispute resolution. Finally, the investor must create the business’ governing documents. In China, this includes drafting articles of association, a shareholders agreement, and other legally binding documents that are registered with the local government. Following the completion of these steps, the business venture can then be launched.

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What is the legal process of starting a business venture in China?

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