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 Pudong Kangqiao Industrial Zone, one of Shanghai’s earliest municipal industrial zones, was established in May 1992, with 26.88-square-kilometer planned area and 13.9-square-kilometer reserved area.
1. Geographical advantages
Situated in the heart of the “Larger Pudong” with the Pudong Section of Shanghai’s Urban Outer-ring Line running through, Kangqiao Industrial Zone is known as “Pudong’s South Gate”. Pudong New Area’s preferential policies are applied here.
With state-level development parks Jinqiao and Zhangjiang to its north, Yangshan International Deep Water Port to its south, Expo Pavilions to its west and planned large theme park to its east, Kangqiao Industrial Zone is a powerhouse that drives the coordinated development between Nanhui District and Pudong New Area. It is an instrumental part of the Pudong micro-electronics industrial belt, which also includes state-level development parks Waigaoqiao, Jinqiao and Zhangjiang.
2. Investment environment
The infrastructure, including water supply and drainage, sewerage, electricity, telecommunications and transportation, in Kangqiao Industrial Zone is almost completed. With its favorable investment environment, along with its investor-oriented R&D team, international management model and services in conformity with ISO9001 and ISO14001, Kangqiao Industrial Zone has attracted investors home and abroad.
KangqiaoTown, where the industrial zone is located, is a state-level sanitation town. Shanghai Institute of University of Science and Technology of China, Shanghai Jianqiao University and Shanghai Zhongqiao College here are sources of talents with pragmatic abilities. Besides middle and high end villas such as The Emerald, Oasis Villa, Cambridge Monte Vista and Kangqiao Byland, there are affordable residential quarters like Zhongbang Chengshi Huayuan and Kangqiao Old Street, etc. The communities are with beautiful scenery and well facilitated with finance, shopping, leisure and entertainment venues. In the neighborhood are commercial banks, five-star hotel Crown Holiday Hotel, Tianrunfa Supermarket, Kangqiao Peninsula Club and Kangqiao Cultural Center.
3. Industrial development
Riding on the coordinated development with Pudong, Kangqiao Industrial Zone’s pillar industries, i.e. modern manufacturing sector featuring IT, medical devices and healthcare and autos and components, are flourishing. Its IT industrial zone and auto components industrial park were awarded “Exemplary Zones of Key and Specialized Industries of Shanghai”.
Moreover, there is a 5.8-square-kilometer area under construction, which, as planned, will consist of “Shanghai Headquarters Hub”, “Huaqiang Business Island” and “Telecommunications Port”, as part of the industrial zone’s effort to upgrade and expand its industrial structure. In January 2008, the area was officially recognized as Shanghai’s “producer services cluster” by Shanghai Commission of Economy and Informatization, and has now over 20 headquarters and R&D centers set up by companies such as ABB, General Motors, Toyota and Asus, including one global headquarters and three Asia Pacific headquarters.
4. Economic prospects
With the “multiplier effect” of producer services industry and advanced manufacturing industry, Kangqiao Industrial Zone is now on the “freeway” of sound and sustainable development.
To facilitate people who want to set up company in Shanghai Pudong Kangqiao Industrial 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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