From which account I can invest in JV's capital account

Shanghai Expat Forum Index » Hot Topics Forums » Visas, Taxes, and Legalities

Author

Message

laowaiguoren

Squeeker

Joined: Sep 22, 2004
Posts: 15

Status: Offline

Posted: Sep 29, 2004 - 04:19 PM
Post subject: From which account I can invest in JV's capital account

Nihha

I have one account in Bank of China which includes several accounts. One of them is the account where the money comes to when I wire it from abroad. The line in my bankbook is ....NTR 10USD.... Other lines are for example ...CSH 11USD for cash account. I guess I should be able to transfer money from that NTR10 account to a JV's capital account but I am not sure.

In bank of china they were all sure, "mei you wenti" everything goes, they were allready in holiday mood. The question is that should the foreign investment come directly from abroad to JV's capital account or can it be paid from the foreign money account of bank of china? I have some money on that kind of account here and I want to use it for investing into a JV.

-laowaiguoren

lovingu
FooJay
FooJay

Joined: Aug 07, 2004
Posts: 1721

Posted: Sep 29, 2004 - 04:26 PM

the capital for JV or WFOE must be tranferred to china from another country in the name of the investor.
bank staff dont understand such issues.

FrancesAnderson

Squeeker

Joined: Apr 02, 2004
Posts: 12

Status: Offline

Posted: Oct 06, 2004 - 01:50 PM

What is a JV account? I am trying to prepare for our relocation to Shanghai. There is so much to learn!

Thanks, Fran

lovingu
FooJay
FooJay

Joined: Aug 07, 2004
Posts: 1721

Posted: Oct 06, 2004 - 02:20 PM

after you get the certificate of incorporation of the JV (such certificate is specially issued to receive capital, that means it is not formal certificate, just a temporary one lasting for several months, after that it becomes invalid if no capital received), then you can open several bank accounts in china in the name of the JV, and one of those accounts is called capital account, and it will be used to receive capital in foreign currency remitted from abroad in the name of the foreign investors (called foreign partners), and to receive capital in RMB remitted from china itself in the name of the Chinese investors (called Chinese partners)