Shanghai is located in the Yangtze River Delta. The municipality sits on the southern edge of the estuary of the Yangtze River in the middle portion of the East China coast. It borders the provinces of Jiangsu and Zhejiang to the north, south and west, and is bounded to the east by the East China Sea.
Shanghai is the commercial and financial center of China, and ranks 5th in the 2018 edition of the Global Financial Centres Index (and third most competitive in Asia after Singapore and Hong Kong) published by the Z/Yen Group and Qatar Financial Centre Authority. It also ranks the most expensive city to live in Mainland China, according to the study of Economist Intelligence Unit in 2017. It was the largest and most prosperous city in East Asia during the 1930s, and rapid re-development began in the 1990s. This is exemplified by the Pudong District, a former swampland reclaimed to serve as a pilot area for integrated economic reforms
Shanghai Hongqiao Economic and Technological Development Zone is one of the first fourteen economic and technological zones approved by the State Council. After over ten years of development and construction, it has become an emerging business district with characteristics of foreign trade center, which integrates the functions of exhibition, fair, office, business, living, dining and shopping, and has a dedicated area for consulates.
● Geographical location: Shanghai Hongqiao Economic and Technological Zone, located in the western part of downtown Shanghai, begins on West Zhongshan Road in the east and ends up on Gubei Road in the west, with Xianxia Road on its north and Hongqiao Road on its south. It is 6.5 kilometers away from downtown People’s Square and 5.5 kilometers away from Hongqiao International Airport.
● Construction planning: Hongqiao Economic and Technological Development Zone covers an area of 0.65 square kilometer, with 31.09-hectare land for buildings, 19.54 hectares of green space, and 14.39-hectare land for roads. It plans to have 300,000 square meters of exhibition space, 300,000 square meters of office buildings, 300,000 square meters of hotels and restaurants, 300,000 square meters of commercial and residential buildings, and 300,000 square meters of areas for supporting facilities and foreign consulates.
● Introduction of foreign investment: A total of 108 enterprises are approved by government to get registered at Hongqiao Economic and Technological Development Zone, with total investment as recorded in contracts of USD2.725 billion. Among them, 101 are foreign-funded enterprises, with foreign investment as recorded in contracts of USD2.238 billion. Main features: high proportion of foreign investment, diversified nationalities of investors, a large number of multi-national corporations, diversified investment scope.
● Building projects completed: 25 real estate projects have been completed within the Park, with total floor area of 1,326,700 square meters and total investment as recorded in contract of USD1.342 billion.
3 exhibition venues: Shanghai World Trade City, Shanghai International Exhibition Center, and Shanghai International Trade Center, with total exhibition area of 220,300 square meters. Specifically, Shanghai World Trade City with a floor area of 280,000 square meters has 2500 exhibition rooms of 190,000 square meters, 20 conference rooms of various types, 2,000 square meters of column-free large multi-purpose halls, 30,000 square meters of short-term exhibition space, and 60,000 high-grade office building. Shanghai World Trade City is the largest exhibition center in Asia which provides exhibition space throughout the year and acts as a trade bridge to serve the whole country.
4 hotels: Rainbow Hotel, Galaxy Hotel, Shanghai Yangtze Hotel, and Shanghai Grand Pacific Hotel, with a total of 2,515 rooms.
9 office buildings: Shanghai International Trade Center, New Town Mansion, New Town Center Building, Oriental International Plaza, Xietai Center, Zhong Sheng Financial Center, Shanghai World Trade City, Rainbow Center, and Maxdo Center.
7 commercial and residential buildings: Sun Plaza (twin towers), Jinqiao Building, Jinming Apartment (two wings), Regent House, and New Century Plaza.
7 supporting facilities: total floor area of 56,100 square meters. New Town Club, Hongqiao Friendship Shopping Center, JSWB International Furniture Expo Center, gas station, New Town Central Garden, New Town Plaza, and New Town Parking Garage.
● Consulate area: Apart from apartments for officials of Japanese Consulate and Australian Consulate which have been built and put into use, the U.S., South Korea, Singapore, Pakistan and other countries have signed the contracts on land lease for consulate construction or agreements on swap of land for diplomatic use. Moreover, Consulate Generals of such countries as the Netherlands, India, Cuba, Israel, Romania, Denmark, Switzerland, and Argentina are located in Hongqiao Economic and Technological Development Zone.
● Land leasing: In 1988, the right to use No. 26 land lot of 12,900 square meters in Hongqiao Economic and Technological Development Zone for 50 years was successfully sold out at the price of USD28 million. Till now, Hongqiao Economic and Technological Development Zone rented a total of 11 land lots, with a total area of 72,000 square meters. The success in land leasing is a significant breakthrough in Chinese land use system reform, and opens up a new channel to attract foreign investment into domestic infrastructure construction.
● Economic and trade activities: Till 2001, Hongqiao Economic and Technological Development Zone has successfully organized 340 exhibitions, 250 of which are international exhibitions and 90 of which are domestic ones, with over 9 million exhibitors from at home and abroad. Over a thousand domestic and overseas industrial and commercial institutions have set up companies or opened offices within the Park. Diversified exhibitions attract flocks of merchants, so commercial and trading activities are becoming increasingly prosperous.
● Economic benefits: The Park realized RMB2.979 billion operating revenue accumulatively, paid RMB1.7 billion taxes, achieved total profit of RMB2.515 billion and gained foreign exchange of USD2.86 billion.
To facilitate people who want to set up company to invest Shanghai Hongqiao Economic and Technological Development Zone, here is an introduction of Types of business presence in China:
Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise(WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.
Wholly Foreign Owned Enterprise(WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.
Representative Office (RO) isaLiaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.
Joint Venture (JV) is aLimited liability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.
Since March 1, 2010: Measuresof Establishment of Foreign Invested Partnership Enterprises (FIPE) in China istaking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Shanghai, Shenzhen, Hangzhou and rest cities of China
Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.
After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up inChina becomes the first option of foreign investment's entity structures instead of Rep.Office setting up in China. At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.
Business set-up in Shanghai is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls . Tommy China Business Consulting has direct connections in the local government
Since 2006, TCBC has been focusing on consulting services for our clients to invest in Shanghai China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Shanghai China, drafting privacy policies and structuring commercial transactions
TCBC will manage all aspects of incorporation to get you a business license in Shanghai China. We offer a range of company formation services including helping you to set up:
-Wholly Foreign Owned Enterprises (WFOE )
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises (FIPE)
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