Brief Introduction to Shenzhen,Guideline To Register Company Set Up Business Corporate Formation Company Registration In Shenzhen China

Brief Introduction to Shenzhen

Shenzhen is located at the forefront of the Pearl River Delta and borders on the New Territories of Hong Kong in the south, Daya Bay in the east, the outlet of Pearl River and Dongguan and Huizhou in the north, being an important coastal communication hub in South China. Shenzhen is the only city that owns seaports, airport and land ports in China. Its seaports are especially developed. The Shenzhen Port ranks sixth among world container ports. Shenzhen owns Luohu Port, the largest land passenger port in China and Huanggang Port, the largest land freight port. At the same time, Guangshen, Shenshan, Jingjiu and Guangshen expressways link Hong Kong, Shenzhen and inland cities. 24-hour customs clearance practiced by Shenzhen and Hong Kong ports, electronic inspection and release and the commencement of construction of the West Bridge will make Shenzhen and Hong Kong connected more closely. The regional advantages of Shenzhen will be further highlighted and the economy of both Shenzhen and Hong Kong can further thrive. Besides, Shenzhen is a bridge linking Hong Kong with inland area and linking inland area with the world  Supporting Industry Advantage

Shenzhen is a production base, R&D base and transaction base of high-tech products including computer and parts, communication equipment, audio visual products, optical and electromechanical products, biological engineering products, etc. Shenzhen has over 1500 factories producing supporting parts of computer, which produce almost all computer parts except chips. Their annual supporting ability is over 30 million sets. There are over 30 million lines for communication and exchange. Shenzhen has become an electronic supporting center in mainland China. China International High-tech Result Fair is held in Shenzhen once every year.

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.

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 Shenzhen 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

Since 2006, Tommy China Business Consulting has been focusing on consulting services for our clients to register company in ShenZhen. 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)

-Hong Kong Holding Company.

 

Please visit:http://www.tommyconsulting.com/CorporateFormation.html

Email:  tomlee@tommyconsulting.com,  Skype: tomleeli  

WhatSapp/Wechat/Cell Phone: +86 18926401128

Brief Introduction to Shenzhen Qianhai Free Trade Zone, Guideline To Register Company Set Up Business Corporate Formation Company Registration In Shenzhen Qianhai FTZ

On April 27, 2015, China (Guangdong) Pilot Free Trade Zone Qianhai & Shekou Area of Shenzhen was initiated. As a crucial part of the Guangdong Pilot Free Trade Zone, the Qianhai & Shekou area is a main part of the economic cooperation between Shenzhen and Hong Kong, covering an area of 28.2 square kilometers and including Qianhai and Shekou. The zone can be divided into three industrial areas: Qianhai Finance Business District, which mainly focuses on developing finance, information services, technology services and other professional services; Shenzhen West Port Area that centers around Qianhai Bay Bonded Area and focuses on developing port logistics, international trade, supply chain management and high-end shipping services; Shekou Business District, which will develop Internet information services, technology services and cultural and creative industries.

QianHai was originally a leftover area of 15 sq/km of wasteland from the development of Shekou (directly to its South) in the 80s and 90s. Perhaps twenty years ago it was almost impossible to predict that Shenzhen would have mushroomed into one of Asia’s major cities, but perhaps this was written in the stars thanks to its fortuitous position on the border with Hong Kong, excellent sea and land links to the PRD, and the enterprising will of then Chairman Deng Xiaoping and the Guangdong government to build up a Southern industrial powerhouse.

  Qianhai focuses on four main industries:

•Finance,

•Modern Logistics,

•Information Services,

•Technology and Professional Services

QianHai kicked off in 2010 to offer a stepping stone for a range of businesses seen as beneficial to China’s economy in the future, and Mainland China and Hong Kong have been strengthening ties in the process.These fact slides of Qianhai will get you up to speed:

QianHai Company Setup Benefits

• Ultra low corporate income tax (CIT) of 15% until December 2020 (even Hong Kong’s is 16.5%, and Mainland China is generally 25%!)
• CIT Tax breaks for certain industries where tax exemption lasts for 2 years from their first profitable year, and is subsequently charged at 50% (of the standard 25% CIT rate) for the next 3 years
• ‘Green’ companies rewarded with CIT tax breaks
• VC SMEs eligible for CIT tax breaks
• Businesses may account for 30% of their income from none-preferential business activities, meaning that companies have more flexibility in how they can trade
• Foreign high-end talent, skilled foreign workers, may be eligible for individual income tax reductions by subsidy if the income tax equals 15% or more of their total taxable income
• Reformed tax declaration, making it easier and faster for companies to handle their taxes in China
• Close proximity to Hong Kong and the main cities of the PRD
• Can get loans from Hong Kong banks in CNY, but with Hong Kong loan rates
• Billions of CNY in government grants for preferred industries
• Easy access to Hong Kong and overseas banks, many of whom choose Qianhai as their local HQ
• Hong Kong CPAs may provide their services within the zone as partners of local accounting firms, as may various other registered Hong Kong professionals
• Hong Kong education providers may set up international standard schools within the zone
• Hong Kong medical service providers may set up international standard healthcare service providers, such as clinics, within the zone
• Hong Kong and Macau telecoms providers may set up a joint venture with Chinese firms in order to offer international class telecoms services for the zone
• World class logistics, be it the custom built port, or the numerous local international airports
• Youth entrepreneur innovation hub offering subsidised company start up costs, research, networking with Hong Kong peers, and venture capital opportunities for younger entrepreneurs

How To Set Up A Company In QianHai?

Setting up a Shenzhen Qianhai WFOE requires an investment of 5 Million RMB paid into the capital account, however, this can be spread out over a 5 to 10 year period. You can forego this initial investment if you use an existing Hong Kong registered company to set up your WFOE there

Setting up a company, say a WFOE, is mainly the same as elsewhere in Shenzhen. The difference is that QianHai have some particularly beneficial rules surrounding new business registry.

For instance, you and foreign staff can expect to be taxed at the lower CIT rate of around just 15% - that's less than Hong Kong!

There are also a number of tax breaks and subsidies that the Chinese government grant to new businesses that are in QianHai's preferred niches. For instance, you may be granted free or discounted rent for a number of years, or perhaps you'd be made tax exempt for a period of time to allow you to get well set up.

Shenzhen Qianhai company registration procedures

Step1: Let clients fill out the application form (sign the agreement);

Step2: Confirm the company name, business scope, registered capital and company shares;

Step3: Check the required documents for the clients;

Step4: Pay the services;

Step5: Prepare for the statutory documents for the investors to sign personally;

Step6: Forward documents to related government departments;

Step7: Keep clients informed of processing.

Step8: Finish processing in 15-35 working days;

Step9: Collect the documents and items and settle the balance if any.

Documents Needed To Open Your WFOE

WFOE application form and resolution by Foreign investor’s chairman, signed and stamped

List of directors’ names

Letter of authorisation (4X - This letter is authorisation for the WFOE to be set up by the

foreign investor)

Passport copies of investor, and management of China company

Feasibility study (a study in Chinese that includes the first year business plan and budget, as well as the company seal)

Copies of the business license of the foreign investor company (2X stamped)

Copies of articles of incorporation of foreign investor company (2X stamped)

2X Certificate of Status (original)(U.S. and Canada) or a notarized copy of the Corporate Register for the investor or similar document (original)(Civil Law jurisdictions)

CV of China legal representative (investor) and 6 passport photos

Investor company’s business activity report (Includes business description, brochures, images, and contact information such as website)

An original copy of lease agreement for your business premises in China (2X stamped),

certificates of real estate ownership (2X stamped), and landlord’s ID (2X stamped)

Bank reference letter from investing company’s bank, and bank statement showing 6 month’s balance - demonstrates the good standing and financial stability of the investor (2X Originals and Chinese translation)

Approval paper for corporate formation (Copy)

Notice of enterprise’s name confirmation appraised by the Industry & Commerce Administrative

Bureau (We will help to apply for this, and can assist in the choice of Chinese company name)

2 passport photos of the investor

Proof of investor capital (Usually 100,000 CNY, but this depends on WFOE type)

Corporate certificate of approval receipt (Copy)

we are ready to help you set up your Qianhai company quickly and easily!

Please visit: http://www.tommyconsulting.com/CorporateFormation.html

Email: tomlee@tommyconsulting.com, Skype: tomleeli

WhatSapp/Wechat/Cell Phone: +86 18926401128