Overview
As an international metropolis, Shanghai has played an important role in China’s national economic and social development, shouldering the responsibility of promoting integration within the Yangtze River Delta area and the development of the Yangtze River Economic Belt. Occupying only 0.06 percent of the national territory, the city boasts 3.7 percent of the state’s gross domestic production.
Shanghai has proactively followed the national strategy to facilitate steady growth, reform, restructuring, social welfare and risk prevention. In 2015, the GDP per capita in Shanghai hit $16,560, 5.5 percent higher than 2014, to reach the level of moderately developed countries and regions of the world. The fiscal revenue reached 551.95 billion, up 13.3 percent.
Shanghai has also continued to facilitate the restructuring of industry and transformation of economic development models. So far, Shanghai has formed a service economy-based industrial structure, with tertiary industries accounting for 67.8 percent of the city’s GDP. The ratio of primary, secondary and tertiary industries in the city is 0.4 versus 31.8 versus 67.8.
Shanghai has accelerated fostering the “new economy”, which features new technologies, new industries, new models and new business patterns. Emerging industries, including robotics, 3D printing, cloud computing and Internet of Vehicles, have enjoyed fast development. The government has provided a sound environment for innovation and entrepreneurship. The non-state-owned economy continues to grow, with its added value hitting 1.29 trillion yuan in 2015, up 6.7 percent compared with 2014.
Service sector
The modern service industry sector enjoyed fast development in Shanghai in 2015. The added value of the city’s information services industry totaled 137.45 billion yuan, up 12.0 percent from 2014. Emerging industries also showed sound development, with added value accounting for 15 percent of the whole city. The sales volume of non-store retailing reached 125.06 billion yuan, 26.9 percent higher than 2014 and accounting for 12.4 percent of total retail sales of consumer goods in the city.
Transportation
As a national transportation hub, Shanghai completed the transportation of 912.39 tons of cargo in 2015. The total number of passenger transportation reached 185.71 million, 7.9 percent higher than 2014.
The number of flights departing and arriving at Shanghai Pudong and Hongqiao airports totaled 705,800, up 7.7 percent compared with 2014. The number of passengers inbound and outbound reached 99.19 million, 10.6 percent higher than 2014.
In 2015, the city optimized 280 bus routes and added 40 kilometers of metro lines. The total length of metro lines in the city has reached 617.53 kilometers.
Post and telecommunication
In 2015, the total volume of postal and telecommunication businesses totaled 3.86 billion yuan and 78.03 billion yuan respectively, 24.2 percent and 30.5 percent higher than 2014.
As of the end of 2015, the number of fixed-line telephone users in Shanghai reached 7.93 million. The number of mobile phone users reached 32.6 million, 22.1 million of whom were 3G and 4G users.
Retail
In 2015, the total commodity sales volume reached 9.34 trillion yuan, up 6.4 percent compared with 2014. The total retail sales volume of consumer goods exceeded 1 trillion yuan, with a growth of 8.1 percent compared with 2014. Online retail sales reached a volume of 109.14 million yuan, up 31.6 percent compared with 2014 and accounting for 10.9 percent of the total retail sales of consumer goods.
Finance
Shanghai has strived to construct an international financial center with a cluster of financial institutions offering services in stocks, bonds, insurance and futures. In 2015, the added value of Shanghai’s financial industry totaled 405.22 billion yuan, up 22.9 percent compared with 2014.
As of 2015, the total number of financial institutions in the city reached 1,430, including 618 for monetary financial services, 350 for capital market services and 382 institutions in the insurance sector. The number of foreign-funded for-profit financial institutions totaled 230.
Real estate
Total property investment in Shanghai reached 346.89 billion yuan in 2015, 8.2 percent higher than 2014. The total construction area of commodity housing reached 150.95 million square meters. The sold floor area of commodity housing reached 24.31 million square meters, up 16.6 percent from 2014.
Port
In 2015, the cargo throughput of Shanghai port reached 717.4 million tons and the international container throughput reached 36.54 million twenty-foot equivalent units (TEU), ranking first among global ports for a sixth consecutive year.
As of 2015, Shanghai has established relationship with 23 cities around the world, including Osaka and Yokohama of Japan, Seattle, New Orleans, New York and New Jersey of the US, Antwerp of Belgium and Marseille of France.
MICE industry
In 2015 the city held 851 fairs and exhibitions, with a total display area of 15.13 million square meters, up 22 percent compared with 2014. 292 among them were international exhibitions.
Industrial sector
In 2015, Shanghai’s industrial added value and gross industrial output value totaled 710.994 billion yuan and 3.1 trillion yuan, up a respective 0.5 percent and down 0.8 percent compared with 2014.
Key industries
Digital information, automobiles, petrochemicals and fine chemical engineering, high-end steel, equipment manufacturing and bio-pharm are the six key industries of Shanghai. The total industrial output value of these six industries totaled 2.08 trillion yuan in 2015, accounting for 66.9 percent of the city’s gross output value of above-scale industries.
Strategic emerging industries
In 2015, the city’s strategic emerging industries, including energy conservation and environmental protection, new information technology, bio-pharm, high-end equipment, new energy, new material and new-energy vehicles, reached a total industrial output value of 806.41 billion yuan, accounting for 26 percent of city’s gross output value of above-scale industries. Among them, the new energy, bio-pharm and new-energy vehicles industries enjoyed fast development, with growth rates of 4.6 percent, 2 percent and 31.5 percent respectively.
Industrial products output
The sales rate of the city’s above-scale industrial products reached 99.5 percent in 2015. Major industrial products such as processed crude oil, industrial robots, mobile phones and automobiles enjoyed a fast output growth.
Output and year-on-year growth rate of major industrial products in Shanghai in 2015
Agriculture
Shanghai’s new rural construction has achieved great progress by improving agricultural productivity, increasing farmers’ income and promoting rural development. In 2015, the added value of agricultural output in Shanghai totaled 10.98 billion yuan, down 13.2 percent compared with 2014. The gross value of agricultural output reached 28.78 billion yuan, down 12.7 percent compared with 2014.
Agricultural products
Shanghai has strived to develop brand agricultural products. By the end of 2015, Shanghai has 1,631 agricultural companies, 191 with green food production permit. The gross export value of primary agricultural products totaled 1.08 billion yuan in 2015. Products including vegetable, flower, fruit and aquatic products have been exported to countries such as Japan, South Korea, US, as well as Southeast Asia and Europe.
Modern agriculture
By the end of 2015, the total power of agricultural machinery amounted to 1.19 million kilowatt. Shanghai had 150 standard vegetable farms, 317 livestock and poultry farms and 270 aquatic farms. A total of 387 companies in the city has been entitled as “leading agricultural industrialization companies”.
To facilitate people who want to set up company to invest Shanghai, 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) is a Liaison 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)
Contact Tom Lee to set up company to invest in Shanghai
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