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
On September 12, 2001, Shanghai Municipal Government approved the establishment of Zizhu Hi-Tech Industrial Development Zone with its [2001] No. 34 Document.
It is jointly planned by Minhang District Government, Shanghai Jiao Tong University, Zijiang Holdings and Shanghai Alliance Investment Ltd., etc.
It integrates advantages of scientific research, talents, capitals and industry, and applies the market operation mode.
Today’s Zizhu
Shanghai Zizhu Hi-Tech Industrial Development Zone is co-invested by seven shareholders including Minhang District Government, Shanghai Jiao Tong University, Zijiang Holdings and Shanghai Alliance Investment Ltd. The foundation stone laying ceremony was held on June 25, 2002, and the planning area of Phase 1 covers 13 square kilometers. In 2003, it was listed as a municipal-level hi-tech development zone. In March, 2006, it was announced as a provincial development zone. It is now working on the application to be a state-level hi-tech development zone.
The hi-tech zone consists of University Park, a R&D base and Zizhu Pujiang Peninsula. The University Park mainly consists of Shanghai Jiao Tong University and East China Normal University. The interaction and cooperation between universities and enterprises bring the advantages of scientific research and talents of universities into full play. Aiming at emerging industries and new development trends of traditional industries, the R&D base attracts various R&D institutions and high-tech enterprises by promoting the construction of technical support platforms such as EDA platform, IP platform, design center of enterprise incubation, multi-project chip processing service center and venture investment center, etc. Zizhu Pujiang Peninsula is located in the southeast of the hi-tech zone, and will be built into a large ecological international community.
Sticking to the theme of “ecology, human, science and technology”, the hi-tech zone emphasizes the harmonious development between human and nature, work and life, and strives to create first-class environment for scientific research, creation, investment and living. It also adheres to the strategy of “invigorating the city through science and education” with “linkage of community, university and development zone” as the carrier, and sticks to the all-round innovative development. It promotes scientific discoveries and technical creation, and spares no efforts to build an industrial agglomeration base with independent creativity, so as to enhance the scientific and harmonious development of regional economy.
Functional Positioning
1. Industrial Function
The pillar industries here are integrated circuit and software R&D, new materials, life science, new energy, aviation, and animation and games.
2. Service function
It provides scientific and technical innovative service to scientific researchers and hi-tech talents at home and abroad, including human resources, risk investment, intermediary and consulting, telecommunications, transportation, meetings and exhibitions, entertainment and recreation.
3. Incubation function
Utilizing the research findings of Shanghai Jiao Tong University, East China Normal University and the scientific research institutions within the zone, it builds all-rounded incubating systems and facilities to support the industrialization of scientific research findings.
4. Investment-attracting Function
Sticking to the scientific industrial function and orientation, it capitalizes on the preferential policies granted by the government and utilizes its own talents and scientific research advantages to form industry chains and minimize companies’ operational costs, achieving the maximized effects of talents and industrial concentration.
5. Mobilizing Function
It aims to help to drive traditional industries and improve the industrial added value and technological grade of traditional industrial bases in Wujing and Minhang.
6. Functions of supporting the zone’s urbanization efforts
It aims to help to improve the comprehensive social conditions of Wujing and Minhang District, and the construction of new Pujiang Town in Pudong, making itself a spotlight in the southwest of Shanghai and along the Huangpu River.
To facilitate people who want to set up company in Shanghai Zizhu Hi-Tech Industrial 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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