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
Overview
Shanghai Shibei High-tech Park(abbreviated as the Park) was founded in 1992 with approval from the Planning Committee of Shanghai Municipal People’s Government, and constructed and developed by Zhabei District People’s Government.
In 1998, the Park became a part of Shanghai High-tech Industrial Zone (currently Zhangjiang High-tech Industrial Development Zone). In 2006, it was entitled to one of the 4th batch of provincial-level industrial park by the National Development and Reform Commission, and was the only city-level development zone in downtown Shanghai. The Park became a Shanghai city-level high-tech industrial development zone in 2008, and one year later, it was Shanghai’s first national technological industry base and one of the first function zones for producer services.
With Sitang River to its east, Yuepu River to its west, Zoumatang River and Changzhong Road to its north, and Wenshui Road to its South, the Park is one of the key industrial function zones in Zhabei District with its 3.13 square kilometers of planned area. In recent years, the Park remains a 30% growth rate in terms of district taxes, and is an essential support to the district’s economy.
Development Situation
After being developed and constructed for several years, Shibei High-tech Park has a complete infrastructure supply of water, electricity, gas, telecommunication and drainage. As the construction of the second phase goes on, the regulatory plan will enable it to have modern facilities like comprehensive wiring, wide-band internet, and optical cable communication, in order to ensure a favorable environment for manufacture and operation.
Leading Industries
In these years, Shibei High-tech Park has focused on adjusting industry structure, continuously strengthened the formation and environment building, promoted industry assembling, speeded up the transformation of service concept and function. Consequently, it has achieved the transfer from being a traditional industrial park to a producer service zone that concentrates on the leading functions such as R&D, service outsourcing, and headquarter enterprises. So far around 70% of the enterprises here are in producer service industry. It appears the park is going to develop with the lead of industrial adjustment. With the Park laying great efforts, the effect of industrial adjustment and industrial assembling is gradually observed.
In-park Enterprises
The regional and functional headquarters of enterprises, represented by Kohler (China) Investment Co., Ltd. and the direct subsidiary Shanghai Branch of China Railway Engineering Corporation, the R&D centers of transnational companies like Huanda Computer (Shanghai) Co., Ltd. and Shanghai Advantech Intelligent Services Co., Ltd., as well as the outsourced service institutions like SYKES (Shanghai) Co., Ltd. and Shanghai Zhilian Yicai Talent Consulting Co., Ltd.
To facilitate people who want to set up company in Shanghai Shibei High-tech Park, 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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