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
In order to promote development of the
Shanghai equipment manufacture industry and explore geographical advantages of
the Lingang New Town from neighboring the international airport and
international deep-sea harbor, Shanghai has planned and constructed the Lingang
New Town into a Lingang industry zone characterized with equipment manufacture
industry.
Development and construction of the
Lingang New Town is a significant strategic decision concerning Shanghai
development trend in the 21st century, made by the Shanghai Committee of the
Communist Party and the Government. The Lingang New Town relies on the Yangshan
International Deep-Water harbor and is close to the Pudong International
Airport. The New Town with developed industries and perfect functional service
is a comprehensive seaside city integrating harbor, zone and town, and is also
a new ideal space of city development in Shanghai in the 21st century.
The Lingang New Town is divided into the
New Harbor City and Lingang Industry Area, two functional zones. The New Harbor
City is located between southeast estuary of Yangtze River and Hangzhou Gulf,
50 km away from the downtown of Shanghai, with planned area 293 square km. The
comprehensive living service zone with the Dishuihu as a center is planned for
about 100 km2, where area of concentrated urban constructive land is about 50
km2 and resident population is 500,000 ~ 600,000.
The Lingang Industry Area is a
functional zone majoring in industry development, with planned area of about
200 square km2, among which urban constructive land is 120 square km2 and the
resident population is near 500,000. The Lingang Industry Zone takes modern
internationally first-class equipment industry as the main target, and finally
shapes a comprehensive industry zone with obvious industrial features and
competitive advantages, by means of developing high value added manufacture,
hi-tech industries, modern logistics, R&D service, education and training,
processing for export, trading home and overseas etc.
The Lingang Industry Zone is composed of
three main functional zones, namely, the industry zone, modern logistics park
zone, ancillary zone to industry zone. The industry zone concentrates on
industries of auto, equipment, and logistics, including the magnitude equipment
division, medium-sized equipment division and high-tech industry division. The
modern industrial logistics zone, conducting as the backbone of the industry
zone and the complementary of the Yangshan Deep-water Harbor, is an important
part of the Lingang Industry Zone. The ancillary industry zone takes living
facilities as its main function, and also includes comprehensive zones for
technological R&D, residence and tourism.
The first stage of development is
divided into three parts, respectively magnitude equipment industry division,
high-tech industry division and logistics park division, connected by
expressways of two harbors. The industry area is oriented positively at the
setup of the magnitude equipment division and construction of its corresponding
basic facilities to critically develop auto equipment, shipbuilding mating
equipment and large electrical and mechanical equipment etc. The high-tech
industry zone will mainly develop urban-type industry and technological R&D
industry, while the logistics park zone, which aims at the first stage is to
provide logistic services for the Industry Zone and the Yangshan Deep-Water
Harbor.
It is predicted that total production
value of the Shanghai equipment industry in 2007 will reach 1,000 billion yuan,
which is about 50% of total industrial production value in Shanghai, and that
total production value of the Shanghai equipment industry in 2010 will reach
1,500 billion yuan, which is about 54% of total industrial production value in
Shanghai. The key is to realize upgrade and breakthrough in power station and
transmission equipment, rail traffic, micro electronic equipment, fine
processing equipment, key exclusive equipment, energy source equipment, new
environmental protection equipment, smart measurement and automatic control
equipment etc. eight categories.
To facilitate
people who want to set up company to invest Shanghai equipment manufacture 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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