acts & Figures (2013)
| Rating | AA |
| Year of Establishment | 1991 |
| Land Area | 82.5 km2 |
| Location | Chengdu, Sichuan |
| GDP | RMB 87.89 billion (2012) |
| FDI | US$17.44 billion |
| Utilized FDI | US$2.12 billion (2013) |
| Major Investors | Intel, AMD, Motorola, Corning, Alcatel, Oracle, Huawei Technologies, New Egg, Kingdee |
| Major Industries Encouraged | Software and service outsourcing, information technology, bio-pharmaceuticals, machinery manufacturing |
Introduction
Chengdu High-tech Industrial Development Zone (Chengdu HIDZ) was established and approved by the State Council in March 1991 as a state-level development zone.
Chengdu HIDZ consists of the Western Zone and the Southern Zone. Two national export processing zones are located in each of these zones.
Chengdu HIDZ has a well-developed transportation network and infrastructure. Both the Western and Southern Zones are within a 30-minute drive of Shuangliu International Airport, the North Railway Station, which is for passengers, and the South Railway Station, which is for cargo.
Investment Climate
In 2013, the utilised FDI hit US$ 2.12 billion, and the foreign trade hit US$23.9 billion. In 2012, Chengdu HIDZ's GDP exceeded RMB 87.89 billion, accounted for about 10% of Chengdu's total, while its gross industrial output was RMB 223 billion. Its pillar industries are information technology, biopharmaceuticals, machinery, software and service outsourcing.
By the end of 2012, Chengdu HIDZ had attracted over 500 service outsourcing enterprises, of which over 300 enterprises had won certificates as software enterprises and for their software products, accounting for 57% of the province's total. Twelve enterprises had won certificates of CMM/CMMI2 (China's certificate for software industry) or above, accounting for 86% of the city's total. Among them, three had won CMM/CMMI5 certificates. There are about 50 software enterprises with the CMMI authentication.
The core service outsourcing area of Chengdu HIDZ has set up several service outsourcing industrial bases, including Tianfu Software Park, Financial Back Office Service Zone, Software Incubator Park and Digital Entertainment Park.
In 2012, the total import and export value of the zone reached US$26 billion, accounted for 55% of the city's total, of which, the export value rose 50.28% from a year earlier to US$17.44 billion. Portable computer is the major export products for the zone with a total export value of US$7.5 billion, accounting for 78% of the zone's total. In 2012, the utilized FDI of the park rose 34.8% to US$1.62 billion.
Winning Edges
- The zone has a well-developed software and service outsourcing industrial chain.
- It has a well-developed traffic system.
- There is an abundance of human resources with a comprehensive range of skills and talents.
- Labor and land costs are low.
Limitations
- The zone faces strong competition for investment from Xi'an, the capital city of Shaanxi Province, and Chongqing, the largest municipality in China.
- Transportation costs in inland cities are high.
The Administration Committee
Address: No. 18 N. Sec. Tianfu Avenue, Chengdu, Sichuan, P.R. China 610041
Tel: 86-28-85184155
Fax: 86-28-85184066
Website: www.cdht.gov.cn
Tel: 86-28-85184155
Fax: 86-28-85184066
Website: www.cdht.gov.cn
Source of Facts & Figures: Chengdu HIDZ
To facilitate people who want to invest and set up business in Chengdu HIDZ, 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 )
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises (FIPE)
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