China Sino-Foreign Limited Liability Joint Venture Contract

Set up a limited liability joint venture company in China with this Sino-Foreign Limited Liability Joint Venture Contract, in accordance with the Sino-Foreign Contractual Joint Venture Law.

• This joint venture is between two corporate bodies, one a Chinese national corporation and the other a foreign company.
• The parties will set up a limited liability company, which will be established as a contractual joint venture.
• The foreign company's initial capital contribution may be in cash or in kind, equipment and machinery. It will make an additional capital contribution each year.
• The national company's initial capital contribution will consist of its existing assets that it is contributing to the operations of the joint venture, including inventory, equipment, vehicles, buildings, labour, land, etc.
• If additional contributions are required, they are to take the form of shareholder loans. Each shareholder will be required to provide one-half of such additional contributions.
• The national company will be solely responsible for paying relocation costs, pension fund payments, termination costs, or any outstanding liability, tax or other debts it incurs.
• The foreign company will be responsible for assisting the joint venture in engaging foreign agents, providing capital, making any purchases the venture requires from outside of China, and selling the venture’s products internationally.
• The national company will obtain all necessary approvals and permits, obtaining utilities, space and labour at the best prices, and will deal with all government officials in the course of business.

This English language Sino-Foreign Limited Liability Joint Venture Contract template is prepared in accordance with the laws of the People’s Republic of China. A Chinese translation of the document may also be required for it to be legally enforceable.