Corporate Formation in china

Recommendations

Info

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.
Page 1: Brief Introduction to Shenzhen,Guid

Corporate Formation in china

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?