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 Caohejing Hi-Tech Park was successively approved by the State Council to be a national economic and technological development zone in 1988 and a national hi-tech industrial development zone in 1991, and became APEC international science and technology industrial park in 2000. With a planning area of 5.984 square kilometers, it is at the forefront among national development zones for its comprehensive economic indicators. The Park now specializes in four industries, namely microelectronics, optoelectronics, computer software and machine, and new materials, boasts 4 centers, that is, R&D center, network operation center, financial data center and technical innovation center, and is making efforts to build itself into an “excellent park in both quality and environment”, “digital park”, and “international park”. It passed ISO9001 quality management system certification in 2001 and ISO14001 environmental management system certification in 2001. Caohejing Hi-Tech Park, one of the first state-level economic and technological development zones and Hi-Tech development zones that are designed to attract foreign investment, introduce overseas advanced technology, and develop new technologies, enjoys preferential policies for both economic and technological development zones and hi-tech development zones.
In March 2003, the State Council approved of setting up Shanghai Caohejing Export Processing Zone; in July 2004, the State Council approved the expansion of Caohejing Hi-Tech Park to establish Pujiang Hi-Tech Park, a state-level economic and technological development zone, in Pujiang Town, Minhang District. With the total area of 10.7 square kilometers, the hi-tech industrial park occupies an area of 9.4 square kilometers, with the remaining area for comprehensive supporting area. The export processing zone is located in the north of the park, covering an area of about 0.9 square kilometers.
Pujiang Hi-Tech Park and Caohejing Export Processing Zone focus on hi-tech industry development while introducing related high-level supporting industries. As the base for a new round of development of Caohejing Hi-Tech Park, Pujiang Hi-Tech Park, planned with high-standard and constructed and developed in a scientific way with attentions paid to improving related supporting functions by learning from the successful development models of U.S. Silicon Valley and British Arlington Park and upholding the concept of harmonious co-existence of man and nature, strives to build itself into a leading domestic and international first-class technology industrial park that has competitive edge internationally in respect of R&D, technical service and hi-tech industrial manufacturing.
To facilitate people who want to set up company to invest Shanghai Caohejing Hi-Tech Park, 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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