Chengdu is designated by the State Council as the very center of commerce, logistics, finance and science & technology, and the hub of transport and communication in Western China. It is also Pilot Zone of Rural & Urban Coordination.
The economy of Chengdu has been growing substantially since the national implementation of the National Western Development Program for more than 10 years. The regional GDP of the city achieved 910.89 billion in the year of 2013, with an increase of 10.2%. Main economic indicators rank top among all sub-provincial cities, including the economy growth, growth rate of above-scale industrial added value and export trade growth rate. Chengdu’s implementation of the five city prosperity strategies and creation of the Core Economic Growth Pole in Western China gained progress.
In recent years, to build Chengdu into an international metropolis and regional center, the city is sparing no effort to implement its strategy of opening the entire area by utilizing these five opportunities, which are the New Round of Western Development Program, Pilot Zone of National Rural and Urban Coordination, accelerating the construction of Tianfu New Area, Optimization of National Hi-tech Industry Development Zone and the North City Reconstruction Project. Chengdu has become the best choice for investors both domestic and abroad due to its advantages in various aspects, including pleasant living environment, advanced logistics system, solid industrial foundation, abundant talents, complete financial services, efficient government services and good infrastructure facilities, etc. In 2013, the actual foreign investment in place hit USD 8.758 billion, with a year-on-year increase of 5.26%, ranking top among all western cities.
Chengdu has Hi-tech Industrial Development Zone, Economic & Technological Development Zone and Hi-tech Comprehensive Bonded Area.
Currently,15 countries are allowed to consulates in Chengdu, such as USA, Germany, South Korea, Thailand, France, Singapore, Pakistan, Sri Lanka, the Philippines, Australia, Israel, New Zealand, Poland, .Czech and India. The number of consulates is less than Shanghai and Guangzhou, ranks the third in China.
Chengdu is benchmarked as the city investment environment in Chinese inland and granted with the title of the first “Gastronomy City of the World”, “the Best Tourism City of China” by the World Bank, UNESCO and UNWTO and awarded as the No.1 among the 4 listed Chinese cities with rapidest developments in the next 10 years in the world by Forbes. In 2013, Chengdu hosted successfully “Fortune Global Forum” and “The 12th World Chinese Entrepreneurs Convention”, which show the Chengdu broad prospects and development of business opportunities.
To facilitate people who want to invest and set up business in Chengdu, 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 of Establishment 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 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 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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