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
The microelectronics industry of
Shanghai is accelerating to gather in three areas of Pudong, Caohejing and Puxi
(Songjiang and Qingpu), and at present has had shapes the microelectronics
industry base basically characterized by "one belt two zones" across
Shanghai from east to west. Shanghai has already become the most surging place
of integrated circuit industry development and one of the most appealing
investment cities.
The Shanghai IC industry has witnessed a
historical breakthrough in the integrated circuit industry for last two years;
an IC industrial chain, covering design, assembly and test etc. upstream and
downstream related industries and with reasonable structure and clear work
separation, has shown up. With the implementing projects of Huahong NEC, SMIC,
GraceSMC, AdvancedSMC, TaiwanSMC, Hanson Co., Xuqing Semicon as marks, the
production line of 8 inches integrated circuits will have 11, and 4-6 inches
production lines will have six; in addition, there are Huahong Design, VIA
Technologies, SJTU-Han Chip, Fudan Micro-electronics etc, a lot of design
enterprises; a number of professional assembly and test enterprises such as
Intel, Amkor Technology, ASE Kaohsiung, ChipPAC, GAP tech have already
registered in Shanghai.
The Shanghai Pudong microelectronics
industry belt, with Zhangjiang Information City as a core and Shengjiang road
as an axis, extends to the Jinqiao Export Processing Zone and Waigaoqiao Free
Trade Zone and radiates toward the surrounding industry parks. The base core
area from north to south is constituted with total planned area of 20.5 square
km. According to the statistics, the increase of sales income of the integrated
circuit in the microelectronics industry belt is over 100%. 5 production lines
of 8 inches integrated circuits have been put into operation with annual output
of 8" chip of 600,000 pieces and its production value is up to 7 billion
Yuan.
The Caohejing Hi-tech Park has become an
ideal base for the IC industry. At present, the Caohejing Hi-tech Park
accommodates more than 80 IC business enterprises, with 8,000 employees and is
currently one of the biggest domestic bases of IC chips in R&D and
manufacturing.
The Songjiang Industry Zone lays
emphasis in its new western region on enterprises, whose business is assembly
of the integrated circuit, with planned area 18 square kilometers. Taiwan SMC,
the world leader in chip manufacture, has signed an investment agreement with
the Songjiang Government and located in the new western region.
The Taiwan business industry park under
construction in the Qingpu District is a core area of its microelectronics
industry, with planned area of 9.9 square kilometers. A number of businesses
has been digging here such as Hongmao microelectronics with total investment
3.6 billion USD, Hanson technology with 3 billion USD and Xuqing semiconductors
5 billion USD etc. have registered; meanwhile, Datang Mobilecom and ChenSE as
micro-electronics business enterprises have already landed here.
The critical is to enhance R&D, to
broaden categories, to speed up upgrade and to raise profit. To promote
interaction and development of IC design and whole-set, to promote combination
of IT and other manufacture industries, to encourage electronic IT extension
towards automobile electronics, digital TV, key elements and media content
industries. To construct complete industrial chains with ability to research
and develop, design, production, assembly, test and software etc. to make it
become a state-level micro electronic industry base with international level.
To facilitate
people who want to set up company to invest Shanghai Micro Electronic Industry
in Shanghai , 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
aLimitedliability 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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