Monday, April 29, 2019

Brief Introduction To Shanghai Shipbuilding industry, Set Up Company To Invest Shipbuilding industry In Shanghai China

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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 is the birthplace of a Chinese shipbuilding industry, and in possession of 19 shipbuilding enterprises now, including four major key shipyards, namely Jiangnan Shipbuilding (Group) Corporation, Hudong Zhonghua Shipbuilding (Group) Corporation, Shanghai Waigaoqiao Shipbuilding Corporation, Shanghai ChengXi Shipbuilding Co., Ltd, and 23 relevant mating enterprises, 11 research institutes, 2 universities. It has about 3,500,000 tons shipbuilding productivity per year, accounting for more than 40% of the whole country. The products mainly include the oil carrier, bulk cargo ship, chemicals ship, roll-on-roll-off ship, load and unload ship, large-scale LPG ship, large-scale container ship, large-scale self-unload ship and high speed ship, etc. civil boat and ocean engineering, and ship auxiliary equipment, such as low-speed, moderate speed diesel engine, large-scale forging piece, ship stencil plate, etc., which have formed the product series of many varieties and many grades.

According to a new development plan, the Shanghai shipping industry is changing the whole strategy, moving from the Huangpu margin to the entrance of the Yangtze River and relying mainly on the Changxing Island. In the entrance of the Yangtze River, the Shanghai shipping industry base has been formed from the Changxing Island shipbuilding base, Waigaoqiao shipbuilding base and Chongming shipbuilding industrial base.
The Changxing Island shipbuilding base is regarded as a general plan of the China Ship General Co. With 1 kilometer away from the downstream of the Xinkai Harbor as a start point, the about 8 km long shore is all used for shipbuilding. It plans to build 7 large shipyards to form shipbuilding capacity of 8 million tons.

The Waigaoqiao shipbuilding base plans occupied land of 2,100,000 square meters with gross investment at the first stage of the project is 3,214 million yuan, and its planning occupied area is 1,440,000 square meters, which has passed completion acceptance on October 18, 2003 and has formed basically shipbuilding capacity of 1,050,000 t.

The Chongming Ship Repair Base of the Shanghai ChengXi Shipbuilding Co., Ltd has a planned area of 1,510,000 square meters and shore of 2350 meters long. It plans to build one 150,000 ~ 200,000 t, one 100,000 t and one 40,000 t floating dock, 70,000 t half-floating slipway. The shipbuilding capacity will be 1,500,000 tons after being completed.

The main target of 2010 is to have 8,000,000-ton-shipping vessel-building capacity, which will be 1/6 of world total capacity. In 2015,the total ship building capacity will be 12,000,000 ton with the most competition ability in the domestic market. It will become the shipping-vessel-building base with international influence
   
To facilitate people who want to set up company to invest Shanghai Shipbuilding 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 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 in China 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)

Contact Tom Lee to set up company to invest Shanghai Shipbuilding industry

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