Brief Introduction to The Chengdu Economic and Technological Development Zone,Set Up Business,Company Formation In Chengdu ETDZ

Chengdu Economic and Technological Development Zone was established in July 1990 in accordance with the guideline of the Central Committee of the Communist Party of China and the State Council.

This guideline is to expand the opening up of China, protect the quality of arable land in the Chengdu Plain and protect historical and cultural heritages. It also covers the speeding up of economic development in the central and western regions.

In February 2000, the Chengdu Economic and Technological Development Zone was elevated by the State Council into a national level economic and technological development zone.

The Chengdu Economic and Technological Development Zone, located in Longquanyi district, 13.6 kilometers to the east of downtown Chengdu, has a planned area of 26 square kilometers. It is a key area in the Chengdu overall plan to develop eastward and is approved by the State Council.

As the only national level economic and technological development zone in Sichuan province, the Chengdu Economic and Technological Development Zone will develop into a modern manufacturing base in west China.

It will be an open new town oriented towards science, technology and ecological friendly development.

It has become a key area of eastward development for Chengdu in accordance with the overall planning of approved by the State Council. The Chengdu Economic and Technological Development Zone is a key area of the Sichuan province and Chengdu city for opening up the economic development of the city and its industry.

It is an emerging base for machinery and electronics, urban and industrial construction, technological innovation, industrial restructuring, and industrial upgrading.

The Chengdu Economic and Technological Development Zone enjoys a favorable geographical location, a competitive regional position and convenient traffic facilities. The Chengdu-Chongqing expressway and Chengdu-Kunming railway circle around the development zone.

The Chengdu-Chongqing expressway, Chengdu-Nanchong expressway, Chenglong Road, Chengluo Road, outer ring road, and ring expressway surround the district. It is 30 kilometers away from Chengdu Shuangliu International Airport.

As a result of 10 years development, the Chengdu Economic and Technological Development Zone has scored remarkable achievements. It has developed into an area of 10.25 square kilometers with 5.05 billion yuan fixed assets investment, including 1.23 billion yuan infrastructures investment.

It has built over 30 kilometers roads with facilities to supply 150,000 tons of water and 800,000 cubic meters of natural gas per day. It has a 123,000 kilovolt-ampere power supply capacity and 150,000 telephone installed capacity.

The Chengdu Economic and Technological Development Zone has 10 star-level hotels, 10 large shopping malls, five comprehensive and specialized hospitals and 10 universities and colleges.

The Chengdu Economic and Technological Development Zone has complete sets of facilities for comprehensive urban services. It has hardware facilities to accommodate big modern enterprises.

It is innovative with its management system, simplified internal organizations, and improved performance efficiency. Investors will easily have all investment procedures handled in the management committee.

To facilitate people who want to invest and set up business in Chengdu Economic and Technological Development Zone, 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 OwnedEnterprise (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 aLiaison 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 Limitedliability 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 ofEstablishment of Foreign Invested Partnership Enterprises (FIPE) in Chinaistaking 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, Guangzhou, 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 Chinabecomes 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 Chengdu 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 Chengdu 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 Chengdu China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Chengdu China. 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)

-HongKong Holding Company.

Contact Tom Lee for business setup consulting in Chengdu Economic and Technological Development Zone now.