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 Chongming Industrial Zone, formally Chongming County Foreign Business Investment Development Zone, was established in March 1994, and became a city-level industrial zone in February 1996 with approval by Shanghai Municipal People’s Government. The 10-square-kilometre industrial zone is characteristic of:
Advantageous Location
The industrial zone was in Chengqiao Town where the Country Government is located. It neighbors the central town in the east, Nanmen Port in the south, an important port of Chongming to the outside, Sanshanghong and Nanhengyin Rivers that lead to all directions in the west, the secondary national Zhenhai Highway in the north, which is the major transportation artery on the island. Directly influenced by the opening and reform projects of Pudong, it is only 10 kilometers from Chongming International Airport under construction, and 40 kilometers from Pudong New Area.
Convenient Transportation
The external transportation network of the industrial zone extends in all directions. Chongming’s largest vehicle and passenger port is 1 kilometer to its south. Taking a full-air-cushioned high-speed passenger ferry for half an hour, you can arrive at Shanghai Baoyang Road Port. Over an hour’s ride on a vehicle and passenger ferry will get you to Baoshan Shidongkou Port and Jiangsu Liuhe Port. Niupeng Harbor, the important harbor in northern Chongming, is 32 kilometers in its north. You will arrive in Haimen of Jiangsu Province, which is the gateway to the expansive area of northern Jiangsu, after half an hour’s ferry. Chonghai Bridge, which has already been approved to construct, will stand between Chongming’s Niupeng Harbor and Haimen’s Qinglong Harbor.
Outstanding Role
As a comprehensive city-level industrial zone, Chongming Industrial Zone takes a main role in leading the whole county’s industrial enterprises to achieve modern management, through importing high technology and projects from home and abroad as well as adjusting and updating Chongming’s industrial structure, and also provides service for the leaving of downtown and the central government’s third-tier state-owned enterprises. It has gradually become an essential part of economic growth to Chongming’s development. It’s playing a special role of “island bridge” in developing Pudong, revitalizing Shanghai and promoting the economic development of the Yangtze River Delta.
Deliberate Planning
The industrial zone is planned as an area with reasonable facilities and favorable environment for production, work and residence. Currently 370 hectares are planned for industrial region, 59 hectares for storage, 37 hectares for public construction, 227 hectares for residence, 140 hectares for greenery, 145 hectares for roads. In line with the overall standards of “high starting point for planning, high standard for construction, high speed of implementation” put forward by Chongming County Party Committee and County Government, the administrative committee of the industrial zone is quickly pushing the implementation. Complete facilities including water, electricity, road, telecommunication, standard factory building, and greenery have been prepared for the first phase of one square kilometer.
Considerate Service
The administrative committee is authorized by Chongming County Party Committee and County Government to manage affairs and implement the right of comprehensive approval, including: drawing up the planning and organizing implementation; directly approving the investment projects as entrusted by the County Government; taking full responsibility for the development, use and operation of the land in the zone; self-designing the incentives for the enterprises that invest in building factories and are registered in the zone, as well as those who contribute to introducing fund and projects into the zone. The industrial zone has established its own project service centre, property management centre, tax office and administrative office for industry and commerce. It integrates the functions of these relevant departments to offer one-stop service for the Chinese and foreign businesses investing here.
Favorable Policies
ChongmingCountyenjoys a special island policy from the municipal government of “supporting the island with its own income”. As a result, Chongming County Party Committee and County Government have formulated the Favorable Tax Policies for Further Promoting Chongming’s Economic Development, and Several Policy Suggestions on Accelerating the Development and Construction of Chongming Industrial Zone. Its administrative committee has finalized the Incentive Policies for Chongming Industrial Zone. All the Chinese and foreign enterprises that invest in building factories and are registered in the industrial zone can have access to the three favorable policies mentioned above.
Developing Chongming Island is the third step of Shanghai’s “three-step” economic growth route. As the extension of Pudong’s development, Shanghai Municipal Party Committee and Municipal Government are building up the brand of Chongming. In the 21st century, Chongming is going to become the investment hot spot of Shanghai’s general opening up and development. We enthusiastically welcome friends from China and foreign countries to do business on Chongming Island. We hope that our friends will have a prosperous and fruitful future on this promising precious island.
Development Direction of Industrial Enterprises
The development direction of the industrial zone is to actively introduce new technology from home and abroad, to make full use of Chongming’s resource advantages and the large industries of the city to vigorously develop export-oriented economy; the focus is to develop technology, resource, supporting, technical reform and foreign-currency-earning projects that contain high technology, high added value, low freight volume, and zero pollution. Consequently, a modern industrial zone with auxiliary infrastructure projects, socialized service and advanced management will be built. The detailed projects are:
1. Food processing related to Chongming’s specialties
2. Meters and devices
3. Electronic and telecommunication equipment
4. Light industry and construction products
5. Garments and textile
6. Automobile components
7. Art craft fine processing
8. Biological and health products
9. Electromechanical and machinery products
10. Other pollution-free industrial projects
To facilitate people who want to set up company in Shanghai Chongming Industrial 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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