Shenzhen Has Best Business Environment In China,The Options For Company Registration In Shenzhen

Shenzhen Has Best Business Environment In China,

Shenzhen, a city in South China's Guangdong province, is the best place for doing business in China, according to a new report released by the Academy of Greater Bay Area Studies on Monday.

The top five cities are Shenzhen, Shanghai, Guangzhou, Beijing and Chongqing.

Compared with last year, Shenzhen's business environment ranking climbed two spots to first place, Shanghai moved to second place from fourth, while Guangzhou slid to third place from first.

In the business environment index, 35 major cities are assessed based on six factors: soft environment, infrastructure, business cost, market environment, social services and ecological environment.

Over the past year, the number of market entities in Shenzhen reached 3.06 million, becoming the only city to surpass the three million mark in the country.

Shenzhen also performed strongly in the soft environment index (1st), market environment index (3rd), infrastructure index (5th) and ecological environment index (6th).

Guangzhou's ranking in business environment slipped to third this year. The report found some of the city's advantages have changed. For example, its score in business cost index reached 0.368, ranking 32nd, due in part to high land costs.

Soft environment index includes the number of market entities, amount of investment and population growth, according to the report. The top five cities in the soft environment ranking are Shenzhen, Changsha, Guangzhou, Xi'an and Hangzhou.

Changsha, capital of Central China's Hunan province, was a dark horse candidate this year. Its ranking in soft environment index jumped to second from 31st last year.

The Options For Company Registration In Shenzhen

Shenzhen Company Registration also can be understood as: Shenzhen company setup, Shenzhen corporate formation, Shenzhen business setup, Shenzhen company registration, Shenzhen business establishment and Shenzhen business registration.

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.

Contact Tom Lee now for  your company  registration In ShenZhen.