Circular of Trial Measures regarding the Incorporation of Equity Joint Ventures and Cooperative Joint Ventures in Pudong New District by Domestic Natural Persons - 浦东新区人民政府关于印发《境内自然人在浦东新区投资设立中外合资、中外合作经营企业试行办法》的通知
Released on April 20, 2010 and effective on May 1, 2010
On April 20, 2010, the government of Pudong New District of Shanghai circulated the Trial Measures regarding the Incorporation of Equity Joint Ventures and Cooperative Joint Ventures in Pudong New District by Domestic Natural Persons (“Trial Measures”). The Trial Measures would take effect as of May 1, 2010 for a two-year trial period.
The Trial Measures are applicable to the incorporation of joint ventures in Pudong New District. A domestic natural person, a Chinese citizen is allowed to apply for setting up a joint venture with a foreign investor to engage in business that falls under the encouraged or permitted catalogues. According to the current joint venture laws, a Chinese party must be a Chinese company, enterprise or other economic organization, whereas the foreign party can be a foreign company, enterprise, other economic organization or individual. Therefore, the Trail Measures broaden the scope of a Chinese party and will save administration costs and time for a Chinese individual to set up a joint venture with a foreign investor.