12dz Chapter 523 Reaching an Agreement
Chapter 523 Reaching an Agreement
Three days later, Li Xiangyang arrived at the Industry and Commerce Bureau early in the morning.
Business registration procedures are relatively simple now, but it's not something you can just do casually. Li Xiangyang waited in line for a long time before it was finally his turn.
"Comrade, I'd like to register an agricultural product processing company." Li Xiangyang handed over the prepared materials.
He was greeted by a middle-aged female cadre wearing glasses, who looked quite serious: "Solely owned or a collectively owned enterprise?"
"Solely owned businesses."
The female cadre flipped through the documents: "Sanheshan Zhenbao Agricultural Products Company? You have three shareholders?"
"Yes, they're all locals."
"How much is the registered capital?"
"Twenty thousand yuan."
The female cadre looked up at Li Xiangyang, a hint of surprise flashing in her eyes. These days, 20,000 yuan was no small sum.
What is your business scope?
Li Xiangyang was well-prepared: "Agricultural product acquisition, initial processing, and sales."
After filling out various forms, the female cadre told him, "The materials are fine, but you still need to provide shareholder identification and proof of funds. Also, the factory needs approval from the fire and health departments."
Li Xiangyang nodded: "Approximately how long will it take to process?"
"If all the materials are complete, it will take about half a month."
After leaving the Industry and Commerce Bureau, Li Xiangyang rushed to the grain processing station at the north end of the town. Fatty Ma was already waiting there, with Factory Director Liu standing beside him.
"Xiangyang, you've come at the right time," Fatty Ma greeted him. "The contract is all settled; we're just waiting for your signature."
Li Xiangyang glanced at the contract terms, which were basically the same as what had been agreed upon beforehand. The annual rent was eight thousand, the deposit was two thousand, and the lease term was three years.
"Director Liu, are there any problems with the water and electricity?" Li Xiangyang asked.
"Don't worry, all of this is readily available," Factory Manager Liu assured him, patting his chest. "This is a food processing plant, and we have all the necessary permits and licenses."
After signing the contract, the three entered the workshop. Although the equipment was a bit old, the basic structure was still intact.
"Is this dryer still usable?" Li Xiangyang asked, pointing to a machine in the corner.
"It works, but it's not very efficient," Factory Manager Liu explained. "If you think it's too slow, you can buy another one."
Fatty Ma walked around the workshop and said, "This place is indeed big enough; dividing it into three areas shouldn't be a problem."
Just then, a car horn sounded outside. The three went out to see what was happening and found it was Ma Laosan.
"How's it going? Has the contract been signed?" Old Ma asked as soon as he got out of the car.
"Just signed it." Li Xiangyang showed him the contract.
Old Ma looked it over carefully and nodded: "The conditions are not bad. By the way, the technicians I contacted can come and take a look at the site tomorrow."
"So fast?" Fatty Ma was somewhat surprised.
"I told them the general situation, and they were quite interested," Ma Laosan said proudly. "Especially when they heard about making health products, they all said it had potential."
Li Xiangyang was secretly pleased, it seemed that the technical problems of this project could be solved.
"What about the equipment?"
“My friend’s machine shop happens to have a batch of used equipment to sell. The prices are cheap, and the quality is good.” Ma Laosan pulled out a list. “Take a look.”
The list includes the models and prices of various equipment, with a total price of less than five thousand yuan.
Fatty Ma examined the situation for a moment: "Is this enough?"
"This is more than enough for simple processing," Ma Laosan said confidently. "We'll upgrade the equipment once the business picks up."
The four of them walked around the workshop for a long time and basically determined the division of the production area, packaging area and storage area.
"When the technicians come tomorrow, let them give their feedback," Li Xiangyang suggested.
"Oh, right, there's one more question," Fatty Ma suddenly remembered something, "How many workers do we need to hire?"
Ma Laosan thought for a moment and said, "In the initial stage, three or four technicians will be enough. You can figure out the general workers yourselves."
How is the salary calculated?
"A technician gets eighty yuan a month," Ma Laosan quoted a price.
Li Xiangyang did the math in his head. Based on four technicians, the total cost would be less than 320, and with the addition of general industrial workers, it wouldn't exceed 1,000.
"Regarding raw materials, there's no need to invest for now, since our two purchasing stations already have so much stock."
"What about sales channels?" Li Xiangyang asked Ma Laosan.
Ma Laosan smiled and said, "Don't worry about that. I've already contacted several clients from the south. They're very interested in local specialties from Northeast China, especially those made into health products."
"Which specific clients are they?" Fatty Ma asked curiously.
“Several health product companies along the coast,” Ma Laosan explained. “They all have established sales channels.”
Hearing this, Li Xiangyang finally felt relieved. It seemed this collaboration really had potential.
"When can we officially start work?" Fatty Ma asked impatiently.
"Business registration will take another two weeks, and equipment installation and debugging will take another week," Li Xiangyang estimated. "The earliest it will be is the middle of next month."
"So, we have another month to prepare," Ma Laosan nodded. "Perfect timing, we can use this time to finalize all the details."
Just as the group was discussing, Factory Director Liu approached them: "Gentlemen, there's something I need to remind you of."
"What's up?"
"Inspections from the fire and health departments need to be arranged in advance," Factory Director Liu said with some concern. "The regulations are stricter now than before."
Li Xiangyang frowned: "Won't there be a problem?"
"Probably not," Factory Director Liu waved his hand. "It's just a procedural step. I can help you contact the relevant departments."
Old Ma patted Factory Director Liu on the shoulder: "Then I'll have to trouble you. The necessary expenses won't be small."
Factory Director Liu nodded knowingly.
After discussing these matters, it was already afternoon. Ma Laosan suggested, "Why don't we find a place to sit down and discuss the cooperation agreement as well?"
The four of them went to a restaurant in town and asked for a private room.
“I had a lawyer friend draft an agreement,” Ma Laosan said, pulling out a few sheets of paper. “Take a look and see if there’s anything that needs to be changed.”
Li Xiangyang took it and read it carefully. The agreement basically conformed to the previously agreed framework: the registered capital was 20,000, with Li Xiangyang and Fatty Ma each contributing 10,000 for 35% of the shares, and Ma Laosan for 30%. The division of labor was clear, and the rights and responsibilities were well-defined.
“There’s a problem here,” Fatty Ma pointed to one of the clauses, “Profit distribution is based on shareholding ratio, so what happens to losses?”
“Losses will also be borne in proportion to shareholdings,” Ma Laosan answered decisively. “This is the fairest way.”
Li Xiangyang thought for a moment: "There's another problem: what if someone wants to quit?"
"It's stipulated in the agreement," Ma Laosan turned to the last page, "that shareholders cannot withdraw their shares within three years, and after three years, if they wish to withdraw, other shareholders have the right of first refusal."
These terms were all quite reasonable, and Li Xiangyang had virtually no objections.
"So it's settled then?" Fatty Ma asked.
“I have no objection.” Li Xiangyang nodded.
"Alright, since neither of you has any objections, let's find a notary office tomorrow and have the agreement notarized."