Types of company registration In Chengdu China,The Investment environment in Chengdu

In recent years, Chengdu city constructs a opening regional center and a modern international metropolis and spares no effort to implement strategy of ‘opening whole area’, and to create an international advantage of production services environment and to reflect international quality of life service environment and follow the international practice of e-government service environment. Compared with other cities, Chengdu investment environment has below comparative advantages;

Firstly, Chengdu has spontaneous advantage with cool in summer and warm in winter, and also has a reputation of the land of abundance. Chengdu has a long history, profound cultural heritages, and abundant tourism resources. The tourism resources consist of a number of well-renowned cultural and natural landscapes, including the world cultural heritage site Dujiang Weir & Qingcheng Mountain, Xiling Snow Mountain known as the “Alps of the Orient”, and the mysterious Jinsha Site, as well as Wuhou Temple, Du Fu Thatched Cottage, and Yongling Mausoleum. So Chengdu is called one of the most livable city.

Second, Chengdu has vast economic hinterland and traditionally been the southwest and west market strategic high ground involving 90million people in Sichuan and 300million people in western China. Now Chengdu shuangliu airport has opened more than 70 international and regional routes, ranking at 1st in western China.

Chengdu has the largest container terminal, Opening a direct Shanghai Shenzhen, Ningbo and other places of the "five" trains. Chengdu to Poland of the Chengdu-Europe Express Rail opens 45 trains with 3704-teu, achieving 156million dollars ,amounting to 8292.6 tons of cargo volume covering southwest, south China, east China and other places.

Chengdu implemented visa-free policy of 72 hours to 51 nations starting from 1st September, 2013. Thus, Chengdu became 4th city and 1st inland city to implement it after Beijing, Shanghai and Guangzhou.

Third, Chengdu has rich talents. There are 52 universities in Chengdu, including Sichuan University, University of Electronic Science and Technology of China, Southwest Jiaotong University, and Southwestern University of Finance and Economics, with over 751,000 enrolled students. And there are also 86 technical and vocational schools (technical secondary schools, vocational high school, technical schools, etc.) in Chengdu, with over 230,000 enrolled students. Fortune magazine listed Chengdu as one of the best emerging business city, saying that Chengdu has good availability of talents and also has attractions for outsiders. Rich resources of science and education personnel are the core factor to let Chengdu become the most competitive city.

Fourth, Chengdu has perfect industrial supporting. Chengdu initially builds advanced manufacture, modern service industry and modern agriculture of joint development of modern industrial system through recent years. Chengdu is implementing the “1-3-13” modern industry development strategy, i.e.: Accelerating the establishment of 1 modern industry system featuring “reasonable structure, outstanding advantages, and ecological efficiency”, formation of 3 levels of development of “highlighting the development, accelerating the development, and optimizing the development”, and attaching importance to promote 13 industries, including electronic information, transit transport, automobile, petrochemical, aviation & aerospace, biopharmaceutical, new energy, new material, energy conservation and environmental protection, metallurgy, food, building materials and light industry.

Fifth, Chengdu has friendly business environment and also is the financial center of Western China as confirmed by the State Council, having the largest variety and number of financial organizations as well as the highest opening degree. There are 15 foreign-funded banks such as Citibank and Standard Chartered Bank, 17 foreign insurance companies such as AVIVA-COFCO Life Insurance and Groupama Avic Insurance and 16 financial back-office service center. Chengdu had gathered many financial institutes, including 61 banks, 72 insurance companies, and 87 security and future companies. And also Chengdu has the largest international convention and exhibition center, shangri-la hotel and intercontinental hotels and other 12 five-star hotels and Yanlord landmark and Raffles Plaza and other grade-a offices in western China. The opening of the Chengdu Telecom 1G direct international data of special channel can satisfy the demand of the divers corporation’s business, which is one of the first national communication of the city opened 4G.

Sixth, Chengdu has administrative service specification. Compared with other similiar cities in china, Chengdu is the least for examination and approval matters but high efficiency of it. Chengdu is awarded as the first “National IPR Model City” and is the first one to set up government patent award in China’s metropolis, which awarded as the best city for IPR. We still convene a forum of foreign invested enterprises and private enterprises. The leaders of municipal party committee and municipal government are face to face in dealing with various problems from production and operation of an enterprise and offer the enterprise with administrative service in line with international practice.

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 )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

Contact Tom Lee for business setup consulting in Chengdu now.