Corporate Formation in china

Brief Introduction to Shenzhen,Guideline To Register Company Set Up Business
Corporate Formation Company Registration In Shenzhen China
Brief Introduction to Shenzhen
Shenzhen is located at the forefront of the Pearl River Delta and borders on the New
Territories of Hong Kong in the south, Daya Bay in the east, the outlet of Pearl River and
Dongguan and Huizhou in the north, being an important coastal communication hub in South
China. Shenzhen is the only city that owns seaports, airport and land ports in China. Its
seaports are especially developed. The Shenzhen Port ranks sixth among world container
ports. Shenzhen owns Luohu Port, the largest land passenger port in China and Huanggang
Port, the largest land freight port. At the same time, Guangshen, Shenshan, Jingjiu and
Guangshen expressways link Hong Kong, Shenzhen and inland cities. 24-hour customs
clearance practiced by Shenzhen and Hong Kong ports, electronic inspection and release and
the commencement of construction of the West Bridge will make Shenzhen and Hong Kong
connected more closely. The regional advantages of Shenzhen will be further highlighted and
the economy of both Shenzhen and Hong Kong can further thrive. Besides, Shenzhen is a
bridge linking Hong Kong with inland area and linking inland area with the world.
Supporting Industry Advantage
Shenzhen is a production base, R&D base and transaction base of high-tech products
including computer and parts, communication equipment, audio visual products, optical and
electromechanical products, biological engineering products, etc. Shenzhen has over 1500
factories producing supporting parts of computer, which produce almost all computer parts
except chips. Their annual supporting ability is over 30 million sets. There are over 30 million
lines for communication and exchange. Shenzhen has become an electronic supporting center
in mainland China. China International High-tech Result Fair is held in Shenzhen once every
year.

The economic environment of Shenzhen consists of four pillar industries: high-tech, modern
logistics, financial services and the cultural industry. It is noteworthy that Shenzhen is home to
the Shenzhen Stock Exchange (SSE). The SSE is a mutualized national stock exchange
under the China Securities Regulatory Commission that provides a venue for securities trading
to a broad spectrum of market participants, including over 1,500 listed companies as of 2014.
Due to its close proximity Hong Kong, Shenzhen has strong economic ties with the specially
administered region. Hong Kong is its main export destination. In 2012, export to Hong Kong
was US$146.37 billion, accounting for 53.94% of Shenzhen's total export volume. Shenzhen
has also managed to attract substantial amounts of foreign direct investments---the utilized
FDI in 2013 reached US$5.23billion, of which 34.4 percent went into the manufacturing sector.
Under State direction, Shenzhen aims to focus on innovation as its dominant strategy for
future development. The number of Shenzhen’s Patent Cooperation Treaty application ranked
first in China over eight consecutive years.
For more information about Shenzhen, Please visit http://english.sz.gov.cn/
http://en.szinvest.gov.cn/
Guideline To Register Business In ShenZhen,Offer Complete Range Of Company Set
Up Corporate Formation Business Registration Services ShenZhen China
To facilitate people who want to invest and set up company in Shenzhen, 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 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.
No. minimum registered capital is required for WFOEs with scope of business of consulting,
Trading, retailing, information technology etc. in China. There are minimum registered capital still
required for some industries for instance: Banking, Forwarding etc Since China still maintains
foreign currency control policy, it's still advisable to choose registered capital within RMB 100,000
~ RMB 500,000 as the minimum registered capital. Companies can now determine how much
capital will be required to maintain their operations and must simply ensure that they meet those
targets within a period of 10 years.
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 a Limited 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, Measures of Establishment of Foreign Invested Partnership Enterprises
(FIPE) in China is taking 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, 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 (MainlandChina 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 Shenzhen 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
Since 2006, Tommy China Business Consulting has been focusing on consulting services for our
clients to register company in ShenZhen. We offer a range of company formation services
including helping you to set up:
-Wholly Foreign Owned Enterprises (WFOE )
-Representative Offices
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises (FIPE)
-Hong Kong Holding Company.
Please visit: http://www.tommyconsulting.com/CorporateFormation.html
Email: tomlee@tommyconsulting.com, Skype: tomleeli
WhatSapp/Wechat/Cell Phone: +86 18926401128