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