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 petrochemical industry base is
composed of the Shanghai Chemical Industry Park, Sinopec Shanghai Petrochemical
Co., Ltd, Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd and Wujing Chemical
Zone, and is basically located in the south of Shanghai. Its concept of
construction and development is to optimize resource arrangement, to adjust
layout structure, to emphasize biologic environment, and to raise core
competition of the Shanghai petrochemical and special chemical industries as a
key, to speed up development and construction of the Shanghai Chemical Industry
Park and renovation of the old chemical bases, so as to strive to establish
green chemical industry bases with internationally advanced processes, the
biggest economic scope, world first-class management mode and production and biologic
coordinative development.
The Shanghai Chemical Industry Park is a
core zone of the petrochemical and special chemical industry base, and is at
the north bank of Hangzhou Gulf, 60 kilometers away from the downtown, with
planned area of 29.4 square kilometers. It is one of the biggest investment
projects in China. Total investment of the first-phase projects is 150 billion
yuan to critically develop petroleum and natural gas projects, synthetic new
materials and special chemicals etc. petroleum deep processing products. After
the chemical industry park is completed, its industrial production value will
reach 150 billion yuan. According to the prospective planning, the Shanghai
Chemical Industry Park will break the current planned boundaries to connect westwards
to the Shanghai petrochemical to form a chemical industry belt with area of 60
km2 or so.
The Sinopec Shanghai Petrochemical Co.,
Ltd. processes oil of 8.61 million t and achieves total industrial production
value of 26.59 billion yuan and sales income of 26.56 billion yuan, which is
listed at the 3rd place in the Chinese top 100 chemical enterprises. The
Sinopec Gaoqiao Petrochemical Co., Ltd. processes oil of 8.42 million t and
achieves total industrial production value of 23.33 billion yuan and sales
income of 23.77 billion yuan. The Shanghai Huayi Group Co. completes total
industrial production value of 19.37 billion yuan and sales income of 19.4
billion yuan.
The key is zone development, project
construction, improvement and mating, formation of capacity, optimization of
layout and understanding the strategy. The key of structure adjustment and
optimizing layout is to develop Caojing, improve Wujing and adjust Gaoqiao. The
key of development strategy is to extend industrial chains and make all efforts
to develop special chemical industry. It is predicted that in the coming three
years the petrochemical projects under construction and to be built are about
27% of total industrial investment. It is also predicted that total production
value of the petrochemical industry is 180 billion yuan in 2007 and capacity of
oil processing in 2010 will reach 35-40 million t/a, and ethylene output 4
million t/a, and total production value 280 billion yuan, it will become a
first-class in the world and the first in Asia modernized chemical base.
To facilitate
people who want to set up company to invest Shanghai petrochemical 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)
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