Sino foreign joint ventures are not part of a multinational corporation

No! Multinational corporations have a theme that means that any branch is under the direct management of the parent company, and of course joint ventures do not count.

Sino-foreign joint ventures emphasize the ownership of the control of equity, and the shareholders who account for the largest share participate in the company's decision-making. Sino-foreign cooperative enterprises, on the other hand, emphasize that apart from the issue of cooperation, there is no issue of management rights.

1. The joint venture is different, the joint venture is an equity-type joint venture, and the two parties of the joint venture invest and operate together, and share risks and profits and losses according to their respective capital contribution ratios; However, the cooperative enterprise is a contract, and the Chinese and foreign parties do not use the investment amount and equity as the basis for profit distribution, but specifically determine the rights and obligations of each party through the signing of the contract.

2. Different organizational forms. The joint venture must be an enterprise that has obtained the status of a Chinese legal person in accordance with the law, is a limited liability company, and bears limited liability for all the property it owns;

A cooperative enterprise may be an enterprise that has obtained Chinese legal personality in accordance with the law, is a limited liability company, and bears limited liability to the extent of its investment or the conditions of joint use, or it may be an enterprise that does not have Chinese legal personality and bears civil liability in accordance with the relevant provisions of China's civil law.

3. The way of investment is different. When a joint venture is dissolved in accordance with the law, the foreign joint venture can recover its own capital, and the foreign investor cannot return its own capital during the duration of the joint venture; However, the foreign partner in the cooperative enterprise can recover the investment in advance under certain conditions.

4. The management institutions are different. The management body of the joint venture is the board of directors and the management body under the leadership of the board of directors, and the board of directors is the highest authority. On the other hand, the management institutions of cooperative enterprises are diverse, and the board of directors system, the joint management committee system, and the entrusted management system can also be adopted.

5. The profit distribution method is different. The joint venture is to distribute the net profit according to the equity ratio of each party after deducting income tax and withdrawing ** according to regulations; The cooperative enterprise distributes profits in the manner and proportion agreed in the contract, and can take the distribution methods of net profit sharing, product sharing or output value sharing.

1. The meaning of Sino-foreign joint ventures.

1. Sino-foreign joint ventures or enterprises jointly invested and established by individuals and Chinese companies, enterprises or other economic organizations within the territory of China. It is characterized by the joint venture parties to jointly invest, operate together, share risks and share profits and losses according to their respective capital contribution ratios. The capital contribution of each party is converted into a certain proportion of capital contribution, and the proportion of capital contribution by foreign partners is generally not less than 25%.

2. Characteristics of Sino-foreign joint ventures:

1) The main body of the joint venture is a Chinese company or other economic organization; The other party is a foreign company, enterprise or other economic organization or individual.

2) In China, it has obtained the status of a legal person in accordance with the laws of China and is a legal person in China. Must comply with Chinese laws and regulations.

3) It is a limited liability company.

4) In accordance with the principle of equality and mutual benefit, all parties to the joint venture shall jointly contribute, operate together, share profits, risks and losses according to the proportion of registered capital of all parties.

2. The nature of Sino-foreign joint ventures.

From a taxonomic point of view; Sino-foreign joint ventures are non-public economic enterprises. (somewhat divided).

In today's socialist market economy, the economic subjects of this kind of integration of the public economy and the private economy, and the flow of economic subjects, have been far away from the traditional mode of dividing the nature of a single economy. The transition to the scientific division of the property rights relationship and the scientific division of civil liability is limited to the amount of subscribed capital contribution according to the organizational form of the limited liability person.

3. Characteristics of Sino-foreign joint ventures.

1. Register according to law. The Joint Venture Law, the Company Law and the Regulations are the legal basis for the establishment of the company.

2. Implement an examination and approval system. The joint venture must be jointly invested and established by both Chinese and foreign parties. The project must be approved by the approval authority of the first class.

3. Limitation of Liability. The organizational form of a joint venture limited liability company.

4. Joint management.

5. Production and business activities are included in the special norms of the state. For example, equipment and raw materials can be purchased from the international market; Direct export of products produced by itself, etc. There are certain advantages.

6. Located in China, it is a legal person in China.