Home | Hotels | Hotels Video | China Flights | China Train Tickets | Main cities | China map | Contact us | Reservation Status  

 China Law information


Provisions for the Contribution of Capital by Parties to JointVentures Using Chinese and Foreign Investment

Provisions for the Contribution of Capital by Parties to JointVentures Using Chinese and Foreign Investment (Approved by State Council on December 30, 1987 Promulgated byMinistry of Foreign Economic Relations and Trade and State Administrationof Industry and Commerce) Whole Doc.

Article 1 In accordance with The Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment and other relevant laws and regulations, these Provisions are hereby formulated in order to protect the legitimate rights and interests of parties to joint ventures using Chinese and foreign investment (hereinafter referred to as joint venture) and safeguard social economic order Article 2 Capital put up for the joint venture shall, according to the provisions of the joint venture contracts, be cash owned by the joint venture partners, or contributions made in kind which have not been used as security for guarantee purposes, industrial property and patent technology.

In case of making contribution in kind or using industrial property and patented technology as capital, the joint venture partners shall provide proofs showing their ownership and right of disposition.

Article 3 No joint venture partner shall use loans, leasehold equipment and other property obtained in the name of the joint venture as its investment to the joint venture. No joint venture partner is allowed to use property and equity of the joint venture or property and equity belonged to another joint venture partner as guarantee for the capital it put up for the joint venture.

Article 4 Joint venture partners shall agree in the joint venture contract a time schedule that each partner should follow in putting up their capital for the joint venture. In accordance with the relevant regulations, the joint venture shall issue the contribution certificates to the joint venture partners and the certificates shall be submitted to the original examination and approval authority and the administration of industry and commerce for the record.

In case the joint venture contract stipulates that contribution of capital shall be made in one single installment, all partners to the joint venture shall do so within six months upon the issuance of the joint venture's business license.

In case the joint venture contract stipulates that contribution of capital shall be made in several separate installments, the first installment from each joint venture partner shall not be less than 15% of their respective agreed amounts of contribution. All joint venture partners shall put up their required amounts of capital for the first installment within three months upon issuance of the joint venture's business license.

Article 5 If all partners to a joint venture have failed to put up their required amounts of capital according to the time schedule stipulated in Article 4, the joint venture shall be considered as dissolved voluntarily.

The joint venture's approval certificate shall automatically become invalid. The joint venture should go through the formalities for nullifying the registration and hand in its business license to the administration of industry and commerce for cancellation. For those who fail to do so, the administration of industry and commerce shall have the right to revoke their business licenses and make a public announcement to that effect.

Article 6 After the first installment, in case all joint venture partners to a joint venture have failed, either in part or in full, to put up their required amounts of capital in a period as long as three months after the time schedule stipulated in the joint venture contract, the administration of industry and commerce shall, together with the original examination and approval authority, issue a notice requiring all the joint venture partners to put up their capital contributions within one month.

If the parties concerned still fail to put up the required amount of capital after the time period stipulated in the notice mentioned in the above paragraph, the original examination and approval authority shall have the right to revoke the joint venture's approval certificate. After the revocation, the joint venture shall go through the formalities for nullifying the registration and hand in its business license to the administration of industry and commerce for cancellation. The joint venture shall also settle its credits and debts. The administration of industry and commerce shall have the right to revoke the business license of a joint venture and make public announcement to that effect if the joint venture has failed to go through the formalities for nullifying the registration and hand in its business license for cancellation as required.

Article 7 A joint venture partner will be considered "breaching the contract" if it has failed to put up or contribute fully its required capitals according to the agreed time schedule in the joint venture contract. The other joint venture partner(s) which has fulfilled the contribution obligation shall then inform and urge the breaching party to fulfill its obligation within an one-month period. If the breaching party still fails to fulfill the capital contribution obligations, the breaching party will be considered "voluntarily withdrawing" from the joint venture and "voluntarily surrendering" all its rights to the joint venture. The abiding party shall then apply to the original examination and approval authority to either dissolve the joint venture or to look for another joint venture partner to undertake the obligations and rights of the breaching party as provided in the original joint venture contract. The abiding party shall have the right to make claim for compensation as a result of the breaching party's failure to fulfill its capital contribution obligations.

The partial contribution made by the breaching party according to the joint venture contract shall be settled or liquidated by the joint venture.

In case the abiding party has failed to apply according to the first paragraph of Article 7 to the original examination and approval authority for dissolving the joint venture or to look for a new joint venture partner, the original examination and approval authority shall have the right to revoke the approval certificate of the joint venture. After the revocation, the joint venture shall go through the formalities for nullifying the registration and hand in its business license to the administration of industry and commerce for cancellation. For those who fail to do so, the administration of industry and commerce shall have the right to revoke their business licenses and make a public announcement to that effect.

Article 8 Joint venture partners (all or an individual party) of any joint venture which has obtained its business license prior to the implementation of the present set of Provisions are required to fulfill their capital contribution obligations within a two-month period starting from the date of implementation of the present set of Provisions if they have not done so as required in the time schedule agreed in the joint venture contract.

If a joint venture partner has not fulfilled its capital contribution obligations as required in the above paragraph, provisions contained in Article 5, Article 6 and Article 7 of the present set of Provisions shall apply.

Article 9 Joint venture partners of any joint venture which has obtained its business license prior to the implementation of the present set of Provisions shall sign an additional agreement specifying the time limit for capital contribution according to requirements of the present set of Provisions within a two-month period starting from the date of implementation of the present set of Provisions if the original joint venture contract does not contain an item to that effect and they have not put up the required amounts of capital accordingly. The additional agreement shall be submitted to the original examination and approval authority for approval. If approval is granted, the additional agreement shall be submitted to the administration of industry and commerce for the record.

The original examination and approval authority shall have the right to revoke a joint venture approval certificate in case the joint venture partners have failed to sign an additional agreement and put up the required amounts of contribution within the two-month period as mentioned in the above paragraph and their failure has caused a delay in construction or operation of the joint venture for as long as six months starting from the date of issuance of its business license. After the revocation, the joint venture shall go through the formalities for nullifying the registration and hand in its business license to the administration of industry and commerce for cancellation. For those who fail to do so, the administration of industry and commerce shall have the right to revoke their business licenses and make a public announcement to that effect.

Article 10 Matters concerning the contribution of capital by parties to Chinese-foreign cooperative joint ventures shall be handled with reference to the present set of Provisions.

Article 11 The present set of Provisions shall enter into force on March 1, 1988.

liquidated by the joint venture.

In case the abiding party has failed to apply according to the first paragraph of Article 7 to the original examination and approval authority for dissolving the joint venture or to look for a new joint venture partner, the original examination and approval authority shall have the right to revoke the approval certificate of the joint venture. After the revocation, the joint venture shall go through the formalities for nullifying the registration and hand in its business license to the administration of industry and commerce for cancellation. For those who fail to do so, the administration of industry and commerce shall have the right to revoke their business licenses and make a public announcement to that effect.

Article 8 Joint venture partners (all or an individual party) of any joint venture which has obtained its business license prior to the implementation of the present set of Provisions are required to fulfill their capital contribution obligations within a two-month period starting from the date of implementation of the present set of Provisions if they have not done so as required in the time schedule agreed in the joint venture contract.

If a joint venture partner has not fulfilled its capital contribution obligations as required in the above paragraph, provisions contained in Article 5, Article 6 and Article 7 of the present set of Provisions shall apply.

Article 9 Joint venture partners of any joint venture which has obtained its business license prior to the implementation of the present set of Provisions shall sign an additional agreement specifying the time limit for capital contribution according to requirements of the present set of Provisions within a two-month period starting from the date of implementation of the present set of Provisions if the original joint venture contract does not contain an item to that effect and they have not put up the required amounts of capital accordingly. The additional agreement shall be submitted to the original examination and approval authority for approval. If approval is granted, the additional agreement shall be submitted to the administration of industry and commerce for the record.

The original examination and approval authority shall have the right to revoke a joint venture approval certificate in case the joint venture partners have failed to sign an additional agreement and put up the required amounts of contribution within the two-month period as mentioned in the above paragraph and their failure has caused a delay in construction or operation of the joint venture for as long as six months starting from the date of issuance of its business license. After the revocation, the joint venture shall go through the formalities for nullifying the registration and hand in its business license to the administration of industry and commerce for cancellation. For those who fail to do so, the administration of industry and commerce shall have the right to revoke their business licenses and make a public announcement to that effect.

Article 10 Matters concerning the contribution of capital by parties to Chinese-foreign cooperative joint ventures shall be handled with reference to the present set of Provisions.

Article 11 The present set of Provisions shall enter into force on March 1, 1988.


Search China Hotels China Hotels:
Please Select a City:
Find Your Hotel With China Map
Check-in:
Show Calendar
Check-out:
Show Calendar
Currency Adults Child

Search China Flight Ticket China Flight:
One Way Round-Trip
Departure city:
Destination:
Departure date:
Return date:



China Cities:
China Introduction
Beijing Travel Info
Changchun Travel Info
Changsha Travel Info
Chengde Travel Info
Chengdu Travel Info
Chongqing Travel Info
Dali Travel Info
Dunhuang Travel Info
Guilin Travel Info
Haikou Travel Info
Hangzhou Travel Info
Harbin Travel Info
Nanning Travel Info
Ningbo Travel Info
Qingdao Travel Info
Shanghai Travel Info
Shenyang Travel Info
Shenzhen Travel Info
Suzhou Travel Info
Taian Travel Info
Tianjin Travel Info
Weihai Travel Info
Wuyishan Travel Info
Xiamen Travel Info
Xian Travel Info
Yangzhou Travel Info
Zhuhai Travel Info

China Hotels
Aksu
Alxa
Anqing
Anshan
Anshun
Anyang
Baishan
Baoding
Baoji
Baotou
Bazhong
Beidaihe
Beihai
Beijing
Bengbu
Binzhou
Bozhou
Cangzhou
ChangChun
Changde
Changsha
Changshu
Changzhi
Changzhou
Chaohu
Chaoyang
Chaozhou
Chengde
Chengdu
Chenzhou
Chifeng
Chongqing
Chuxiong
Chuzhou
Cixi
Dali
Dalian
Dandong
Daqing
Datong
Daxinanling
Daye
Dehong
Dengfeng
Deyang
Dezhou
Dongguan
Dongxing
Dongying
Dujiangyan
Dunhuang
Emeishan
Enshi
FangChengGang
Fenghua
Fenghuang
Foshan
Fuding
Fushun
Fuyang
Fuzhou
Ganzhou
Guang'an
Guangyuan
GuangZhou
Guilin
Guiyang
Haikou
Haining
Handan
Hangzhou
Harbin
Hefei
Hegang
Heihe
Hengshui
Hengyang
Hetian
Heyuan
Heze
Hohhot
HongKong
Huaian
Huaibei
Huaihua
Huainan
Huangshan
Huangshi
Huizhou
Hulunbeier
Huzhou
Ji'an
Jiamusi
Jiangmen
Jiangyin
Jiaozuo
Jiaxing
Jiayuguan
Jieyang
Jilin
Jinan
Jincheng
Jingdezhen
Jinggangshan
Jingmen
Jingzhou
Jinhua
Jining
Jinzhong
Jiuhuashan
Jiujiang
Jiuquan
Jiuzhaigou
Jixi
Jiyuan
Kaifeng
Kaiping
Karamay
Kashen
Korla
Kunming
Kunshan
Langfang
Lanzhou
Leshan
Lhasa
Lianyungang
Liaocheng
Liaoyang
Lijiang
Linfen
Linyi
Lishui
Liuzhou
Longyan
Loudi
Luoyang
Lushan
Maanshan
Macau
Maoming
Meishan
Meizhou
Mianyang
Mudanjiang
Nanchang
Nanchong
Nanjing
Nanning
Nanping
Nantong
Nanyang
Ningbo
Ningde
Ordos
Panjin
Panzhihua
Penglai
Pingxiang
Pingyao
Putian
Putuoshan
Qian'nan
Qiandaohu
Qiandongnan
Qidong
Qingdao
Qingyuan
Qinhuangdao
Qionghai
Qiqihaer
Qitaihe
Quanzhou
Qufu
Qujing
Quzhou
Rizhao
Ruian
Sanmenxia
Sanming
Sanya
Shanghai
Shangrao
Shangri-la
Shantou
Shanwei
Shaoguan
Shaoshan
Shaoxing
Shenyang
Shenzhen
Shijiazhuang
Shishi
Shiyan
Shouguang
Suining
Suizhou
Suqian
Suzhou(Jiangsu)
Taian
Taicang
Taiyuan
Taizhou(Jiangsu)
Taizhou(Zhejiang)
Tangshan
Tengchong
Tianjin
Tianshui
Tieling
Tonghua
Tongliao
Tongling
Tongren
Turpan
Urumqi
Wanning
Weifang
Weihai
Weinan
Wenshan
Wenzhou
Wuhai
Wuhan
Wuhu
Wuwei
Wuxi
Wuyishan
Wuzhishan
Wuzhou
Xiamen
Xian
Xian'ning
Xiangfan
Xiangtan
Xianyang
Xiaogan
Xichang
Xilinhot
Xingyi
Xining
Xinxiang
Xinyu
Xinzhou
Xishuangbanna
Xitang
Xuchang
Xuzhou
Ya'an
Yancheng
Yandangshan
Yangjiang
Yangquan
Yangshuo
Yangzhou
Yanji
Yantai
Yibin
Yichang
Yichun
Yichun(Jiangxi)
Yinchuan
Yingkou
Yining
Yiwu
Yixing
Yiyang
Yongzhou
Yueqing
Yueyang
Yulin(Guangxi)
Yulin(Shaanxi)
Yuncheng
Yunfu
Zaozhuang
Zhangjiagang
Zhangjiajie
Zhangjiakou
Zhangzhou
Zhanjiang
Zhaoqing
Zhengzhou
Zhenjiang
Zhongshan
Zhongwei
Zhoukou
Zhoushan
Zhouzhuang
Zhuhai
Zhuji
Zhuzhou
Zibo
Zigong
Zunyi
| Home | Hotels | Hotels Video | China Flights | Flights Schedule | Pickup Service | Travel Packages | Affiliate | Add your hotels | Interprete Italiano-Cinese | Contact | Site Map | Link | FAQ | About Us
Copyright © 2001-2024 China Hotels Reservation - All Rights Reserved
Europe Office: ChinaHotelsReservation- Via Gerolamo Forni 64 - 20161 Milano - Fax 0291390522
China Office: China Travel(Hualv) Business co.,Ltd. - Tel 0086-577-88555070 Fax 0086-577-88522570
Xishan Donglu Xicen Gongyu 7 Zhuang 802 - 325005 Wenzhou China