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 Shanghai auto industry focuses on
three strategic targets (namely the sales of locally produced auto up to 1
million sets per year, holding a position in World Top 500, newly increasing
50,000 independent brand cars in 2007), to accelerate arrangement adjustment
and base construction, to maintain excellent development trend in vigorous
market competition, so as to gradually formulate a complete industry chain and
powerful aggregative effect, and strongly promote construction of the Shanghai
International Auto City and the Pudong Jinqiao Base.
The Shanghai International Auto City,
with a planned zone of 68 square kilometers, enters all-round construction
phase, among which the industry zone, trading zone, international car racing
field, R&D zone, parts and components zone, Tongji Auto Institute and the
new town zone have all gained substantial achievements.
Shanghai Volkswagen, located in industry
area of the Shanghai International Auto City, enters a new-round development
tide. A batch of projects, such as the newly increased productivity of 100,000
cars and manufacturing 300,000 engines for economical cars of the No. 1 Factory
of the Shanghai Volkswagen has entered constructive phase. The car-testing
field with international advanced level, built by the Shanghai Volkswagen with
years of efforts, has been put into use in 2003. The basic facilities of the parts
and components zone with planned area of 8 square kilometers have achieved
"Seven available, one leveled". By the end of 2003, the total number
of introduced Chinese and foreign enterprises has been more than 200, with
contracted investment capital of 25 billion yuan. The racing field has been
completed and the F1 China Rally is successfully held in September 2004.
The Jinqiao Base of the Shanghai GM
covers 550,000 square meters. The maximum productivity has been promoted to
180,000 cars per year. Around the three strategic targets of SAIC, the Shanghai
GM establishes differential development strategy and ascertains an objective of
annual production of 450,000 complete cars in 2007.
In the coming several years, Anting,
Jinqiao and Lingang, three auto manufacture bases will be built. It is
predicted that the projects of the auto industry under construction and to be
built in the coming 3 years will be 15% of total industrial investment; in 2007
total production value of the Shanghai auto industry will reach 280 billion
yuan; in 2010 in China the capacity of 20 million sets will be formed, among
which Shanghai has capacity of 15 million sets per year with total production
value above 400 billion yuan.
To facilitate
people who want to set up company to invest Shanghai auto industry, 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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