ShenZhen Qianhai Pilot Free Trade Zone Offers Incubators Free Rent & Low Taxes,Shenzhen Qianhai Company Registration Business Setup Procedures

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.

 

The Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone – has opened a 15 square kilometer incubator hub for entrepreneurs from Hong Kong and overseas. The Zone itself has been billed as a Hong Kong-Shenzhen joint development, and to date has focused on attracting corporate financial services. HSBC, for example, have committed to the zone, as have Standard Chartered, the Bank of East Asia and China’s Commercial Bank, based on the zone’s ability to offer cross-border RMB loans. However, the Qianhai bankers and forex traders may soon find themselves rubbing elbows with T-shirted entrepreneurs aged 18 to 45 who are looking to start their businesses there.

 

The Shenzhen government has specifically targeted IT and promised that internet access will be better than is permitted elsewhere on the mainland. One-third of the land set aside for the entrepreneurs – known as the Shenzhen-Hong Kong Youth Innovation & Entrepreneur Hub – will be available to Hong Kong residents, the rest to foreign investors. Incentives for approved projects include one year of free rent and the second year at 50% for both residential and office space. Also, both individual income tax and corporate income tax rates in certain industries are set at 15 percent. Normal tax rates in China are 25 percent for corporate and up to 45 percent for individual income tax.

 

Meanwhile, a gold vault, which will facilitate gold as a commodity trading hub, will also opening in Qianhai, in March. The vault will be operated by the Chinese Gold and Silver Exchange Society and will allow for gold to be traded and supplied on-demand to Shenzhen’s jewellery factories. Sixty-eight gold trading firms are behind the scheme. Shenzhen manufacturers some 70 percent of all gold jewellery in China, and the gold facility in Qianhai is expected to attract international gold firms hoping to access the PRC market.

 

The preferential tax policies have already attracted over a 100 000 business to the Qianhai SEZ which are expected to generate 150 billion Yuan by 2020 as it transforms into a modern services centre and regional powerhouse

Low financing costs, low labor costs and high efficiency have enticed a growing number of enterprises to set up operations in the zone

 

Ok, so you’re convinced Qianhai company is for you. What are the requirements for setting up? Here’s a list:

Qianhai Company Forms

1. Qianhai company forms: WFOE, CJV, EJV, Domestic company;

2. Documents required for Qianhai company registration:

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

*Passport or ID card copies of Legal representative, Executive director, General manager and Supervisor;

*One original Lawyer’s legalization or notarization which should be endorsed by local China Embassy or Consulate within 6 months (for foreign invested company);

*China company’s business license, company stamp and article of association (for JV)

*Online banking USB of Shareholders, Legal representative, Executive director, General manager and Supervisor (for Shenzhen domestic company).

 

Qianhai company registration and Qianhai regulations

1. Qianhai company name format: China government has a name format for anyone who wants to setup a company in China, the format is: City name + trade name + business scope+ limited. If using the province name or even using “China” instead of the city name, the name should be applied in the province authority or Beijing. And only Chinese company names are officially used, while English names are for reference only. Any names are subject to the approval of relevant authority. In Shenzhen, the company name should include the city name “Shenzhen” inside it and for those registered in Qianhai Free Trade Zone, the investors can choose either to add “Qianhai” into the company name or not.

 

2. Qianhai company registered address: Qianhai government provides the registered address for all companies registered in Qianhai Free Trade Zone. Before applying for Business License, the company is required to apply for the Qianhai registered address from Qianhai government. After the application is approved, the investor can sign a lease agreement with the Qianhai government. The valid period for the address is for one year and the investor is supposed to apply for another year’s extension before the lease agreement expires.

 

3. Qianhai company registered capital: Shenzhen Qianhai Free Trade Zone authority has different requirement about the amount of registered capital from other areas in Shenzhen. In other area of Shenzhen, investors are free to decide the amount of registered capital while in Qianhai Free Trade Zone only investors from Hong Kong, including both HK citizens and HK companies, are free to decide the amount of registered capital. Investors not from Hong Kong are required to set up the company in Qianhai with the minimum registered capital of RMB 5 million. And the capital, like other areas in Shenzhen, could be paid up within 30 years from the date of issue of Business License.

 

4. Qianhai company business scope: One of the most important issues is to define the business activities of the company. Business scope is narrowly defined based on many factors, such as trade names, registered capital and business scope. A Shenzhen Qianhai company can only conduct business within its approved business scope on the business license. Amending the business scope will need further application and approval. Qianhai authority encourages the business scope from logistics, technology, services and trading, but disapprove manufacturing company to be registered in Qianhai Free Trade Zone.

 

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.

 

We are ready to help you register your Qianhai company quickly and easily.

 

 

Contact Tom Lee now for setting up your Qianhai company

Email: tomlee@tommyconsulting.com, tomlee_cn@163.com,
WhatSapp/Wechat/Cell Phone: +86 18926401128, Skype: tomleeli
Tel: 86-755-25809219,Fax: 86-755-83256658

Five Good Reasons to Set Up Business in Hong Kong,Hong Kong Company Incorporation Services, HK Company Registration

“Hong Kong is a regional base for expansion across Asia. Stable, business-friendly and cosmopolitan”, is how Hong Kong’s business promotion organisation InvestHK promotes the city. It wants Hong Kong to be seen as a Chinese hub, but also as a gateway to Asia’s business environment. Indeed, there are about 1,000 daily flights between Hong Kong and the rest of the world. What else is there?

1.   Great for startups – Hong Kong offers a good climate for startups. A recent survey conducted by HKInvest showed that the number of new startups has risen sharply in 2014. 1,558 new startups were registered, up 46 per cent compared to a similar poll done a year ago. Top sectors included Information, Computer and Technology taking up 19 per cent, Hardware (IoT, prototypes and wearables) accounting for 14 per cent (compared to only five per cent a year ago) and E-commerce/Supply Chain Management and Professional or Consultancy Services, each taking up 10 per cent.

2.   Location - Hong Kong offers easy access – commercially and geographically – to Mainland China business opportunities. The Pearl River Delta (PRD) region is immediately to the north of Hong Kong and business people commute regularly and easily between the two.

3.   Government support – Hong Kong’s government wants your business and is prepared to offer incentives, with programmes designed to help overseas and local SMEs set up in Hong Kong. Part of Hong Kong’s appeal is built on political stability, the rule of law, free market principles, free flow of information, and English as the language of business. More pros: there are no foreign ownership restrictions and HK offers free movement of capital, talent, goods and information and a fully convertible Hong Kong dollar separate from the Renminbi (RMB).

4.   Tax is a breeze - According to the 2015 Paying Taxes study of 189 economies, Hong Kong has one of the most tax-friendly economies in the world. There is a simple tax regime, profits tax is capped at 16.5 per cent, salaries tax is a maximum of 15 per cent, and property tax is 15 percent. Hong Kong has no sales tax or VAT, no withholding tax, no capital gains tax, no tax on dividends and no estate tax.

5.   Free trade - For the past 21 years Hong Kong has been ranked as the ‘World’s Freest Economy’ by the Heritage Foundation/Wall Street Journal. Hong Kong scored particularly well on business, trade, financial and labor freedoms. Hong Kong’s natural deep water port and trading history has made the city one of the world’s major international sea and air cargo hubs, accounting for almost a third of exports in and out of Mainland China. Hong Kong also handled nearly 4.4 million tonnes of airfreight in 2014.

6.   The right people - Recruiting well-educated local staff is easy. Almost all business professionals speak excellent English. The Hong Kong University was ranked the second in Asia in the 2014-15 QS World University Rankings. Hong Kong’s business schools are also world-renowned. Hong Kong’s immigration policies are designed to attract overseas professionals, talent and investors. Policies are family friendly and expatriate employees can normally bring their spouse and dependent children.

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

Requirements of Hong Kong Company Formation
If the shareholder is a corporation, need to provide Business Registration certificate copy.
Company Secretary must be ordinarily reside in Hong Kong or Hong Kong Limited Company, like UWS, to handle on-going statutory compliance matters.
Registered address of the Company must be located in Hong Kong
There shall be at least one shareholder and natural director over 18 years old, Shareholder and director can be the same person and can be of any nationality
Processing Times of Hong Kong Company Formation• Online applications for Hong Kong Company Incorporation can normally be processed within a day
Paper applications will take 5 working days to get the Certificate of Incorporation and Business Registration Certificate.
Required Information for Hong Kong Company Formation
Proposed company name (please provide at least 2-3 choices). Company Name must be unique and can be in English or Chinese or both.
Passport copy and residential address (in English) of shareholders and assigned Director.
Amount of share capital, and percentage of shareholdings; if there is more than one shareholder. HK$10,000 divided into 10,000 shares of HK$1 each is the most common and Minimum subscribed share capital is HK$1

Hong Kong Company Formation Procedures:
Step 1
Client engages the services of Uni-World Services.
Full information required is sent to us by fax or email.
Step 2
Payment receipt of company formation service fees to be submitted.
Step 3
Necessary documents and forms will be sent to client for shareholder’s and director’s signature.
Step 4
Upon the receipt of the signed documents, the application for the Certificate of Incorporation (CI) and Business Registration Certificate (BR) will be submitted to the Company Registry of Hong Kong. (The Certificate of Incorporation will be issued within 5 working days.)
Step 5
The order for making company seal & chop will be placed.
Step 6
Open bank account
The official establishment of the company is finally completed.

Hong Kong Company Secretarial Service
Under the Companies Ordinance (Cap. 32) of the Laws of Hong Kong, a limited company incorporated in Hong Kong should appoint a company secretary, to perform the legal liability of the company, which includes declaration of relevant organisation structure, changes of shareholders and directors to the Companies Registry, as well as contemplation of the agenda of company meetings for Board of Directors, preparation of annual general meetings of shareholders and provision of professional advisory service and advice on relevant statutory ordinances.

Our Services Include:
Preparing and keeping statutory records, such as register of shareholders and register of directors, etc.
Arranging and attending meetings of directors and shareholders, and preparing minutes of meetings
Preparing and submitting statutory documents, including annual return form
Preparing and submitting application for business registration certificate
Assisting in opening bank account
Assisting in applying for Hong Kong work visa
Deregistering the company and suspending applications for activities
Providing relevant advice on company liquidation and bankruptcy
Hong Kong Company Bank Accounts
After incorporating company, you may consider to open bank account or not depending on your company’s actual circumstances.

Local Accounts Documents Required:
Director(s)’s Passport, address proof
Business Registration Certificate
Certificate of Incorporation
Statutory record
Common Seal and stamp
Shareholder(s)’s passport and address proof
Relevant business proof are *Essential*
• Business Plan and/or Product Brochure
• Buyer and Supplier’s contract
• Shipping documents e.g. Packing List, Commercial Invoice and Bills of Lading etc.
• Company Business Card

Director(s) should go to the bank in person to sign the bank documents:
Hong Kong banks generally require the directors (at least 2 if more than 2) to visit the bank in person to open an account. Account signatories or a company director (if from Mainland China you must hold a Chinese passport or travel permit) should bring company documents and related materials as mentioned above to open an account in Hong Kong or Macau.
UWS Banking Services:
Communicate with you in preparing documents required
Review all supportive documents
Understand your business mode
Submit required documents to banker and arranging bank meeting.
Advice on answering bank interview questions shortly before your meeting with bank.
Accompany you to bank for opening bank account.
Follow up with bank closely.

We are experts in Hong Kong company registration, and will get your Hong Kong company up and running with the minimum of hassle for you. You do not even need to be in Hong Kong for us to do this for you

Contact Tom Lee now for setting up your Hong Kong company

Email: tomlee@tommyconsulting.com, tomlee_cn@163.com,
WhatSapp/Wechat/Cell Phone: +86 18926401128, Skype: tomleeli
Tel: 86-755-25809219,Fax: 86-755-83256658

Set Up a Representative Office in Shenzhen China, Establishing Representative Office (RO) in Shenzhen

Shenzhen is the second largest city in Guangdong province, a regional manufacturing and financial hub and one of the richest cities in China. The city, originally a village north of Hong Kong, was first developed as a special economic zone when economic reforms were introduced in the late 1970s. After over 30 years of sprawling, it has become one of China's top four first-tier cities along with Shanghai, Beijing and Guangzhou. With a population of over 20 million, the city's GDP grew 10% to RMB1.3 trillion in 2012. The Shenzhen Stock Exchanges, one of the only two on the mainland, focuses on small and midsized companies as compared to Shanghai's where larger state-owned companies are traded. With sound infrastructure and easily recruited many talented personnel in Shenzhen, Foreign company can take this advantage to set up company in Shenzhen as china market entry strategies

 

 

When investors have plans on establishing representative office in Shenzhen, it is better for them to acquire more information in order to run a successful business in Shenzhen. Setting up a representative office is the most inexpensive entry form for foreign enterprises to enter the Chinese market. And about 20% of investing clients have chosen Representative Office as their Shenzhen business entity since setting up a representative office is cost efficient and it requires no capital investment. A representative office basically is to serve as a liaison office between a foreign company and its business partners in Shenzhen, and to coordinate the parent enterprise activities in Shenzhen (travel arrangements, promotion etc.). 

 

Representative offices are applicable for many industries: trading, shipping, consulting, etc. The Chinese government has a name format for anyone who wants to setup a representative office (RO) in China, the format is: country (area) + parent company name + Shenzhen Representative Office.

 

Shenzhen Representative Office Setup-Procedures
Preparing all the needed documents→ fill out the application form→ sign the agreement with TCBC→ pay for the services→ submit all the needed documents→ name reservation→ apply for the business license and work card→ go to the public security bureau for stamp-make→ apply for Organization Code License & card→ apply for Setup license of the Local & National Taxation Bureau.

 

An RO has no legal personality, meaning it does not possess the capacity for civil rights and conduct, cannot independently assume civil liability, and is limited in its hiring ability. Chinese staff working for an RO, although not limited in number, must be employed through a human resources agency that will sign a contract with the RO on the one hand and with the Chinese staff on the other in order to ensure social security and housing fund contributions are paid on a regular basis. No more than four foreign employees can be hired per RO. Foreign staff working for ROs should have an employment relationship with the parent company abroad, and any disputes should be settled under the laws of that country

 

ROs are usually taxed on gross expenses with the overall tax burden around 11.75 percent of total monthly expenses; however, these rates may be increased by the relevant tax bureau according to the industry. If the chief representative is a foreign national, whether they stay in China or not, they shall be subject to individual tax based on the income derived from the RO. 

Set Up a Representative Office 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

 

Contact Tom Lee now for setting up Representative Office in shenzhen

Email: tomlee@tommyconsulting.com, tomlee_cn@163.com,
WhatSapp/Wechat/Cell Phone: +86 18926401128, Skype: tomleeli
Tel: 86-755-25809219,Fax: 86-755-83256658

 

Why Choose a Hong Kong Offshore Structure to Invest In China? Setting Up Hong Kong Company as a Special Purpose Vehicle to Invest In China

Chinese official statistics on foreign investment in China have indicated that Hong Kong has been the biggest source of inbound foreign investment in the mainland China. In addition to the common advantages of having an offshore structure, namely, easier transfer of equity interests in the Chinese entity, better financing access and higher appraisal of Chinese assets, the decisive factor for considering Hong Kong over other offshore hotspot like Cayman and BVI is the income tax favorable treatment made available to HK by the mainland China, a unique advantage enjoyed only by Hong Kong.


Tax benefit
Hong Kong also has the lowest corporate income tax rate in China at 16.5 per cent. In comparison, the PRC has a standard corporate income tax rate of 25 percent. By using transfer-pricing techniques, a PRC foreign-owned factory can sell its products to its Hong Kong holding company at a low price, which in turn can sell the products to third-party foreign customers at a higher price. By this means, a larger portion of the pro?ts can be realized in Hong Kong and will therefore be taxed at the lower Hong Kong rate. In terms of the repatriation of pro?ts from the foreign company’s perspective, the repatriation of pro?ts from China to the foreign jurisdiction is generally the same whether the pro?ts ?ow directly from the PRC entity or through a Hong Kong intermediary. The foreign parent company with a Hong Kong holding company, therefore, has the option of keeping the pro?ts in Hong Kong; such funds can be reinvested for other offshore purposes by the Hong Kong Company. Another benefit is that HK company is not required to declare taxation to HK government for its dividends made from China company.


Legal system benefit
A JV or WOFE established in China, will, of course, be subject to PRC law. If a Hong Kong holding company is used, agreements with third parties can be signed by the Hong Kong holding company which will be governed by Hong Kong law. Companies may ?nd that new customers may also take comfort in the fact that agreements are signed in Hong Kong as opposed to China, as Hong Kong is seen as a lower risk jurisdiction. Hong Kong’s legal system remains based on the rule of law. Its courts are independent of the government and are open to the public. Another unique opportunity may soon arise as Hong Kong; the mainland authorities are currently negotiating a reciprocal enforcement of judgments agreement that, when adopted, will be an additional advantage to executing contracts in Hong Kong. The result will be that Hong Kong judgments, unlike those of any other jurisdiction, will be recognized and immediately enforceable in the PRC.


Restructuring benefit
Using a Hong Kong holding company also affords greater ?exibility in the case of restructuring the mainland entity. Transfers of ownership of Hong Kong companies do not require much approval and can be done immediately. While Transfers of ownership of other foreign company will be time consuming and vetting of transfer agreement would be required.

Another benetfit is that transfer tax must be paid for the transfer of an interest in a PRC entity, whereas Hong Kong only levies a 0.02per cent (on net asset value) ‘stamp duty’ on the transfer of shares. The result is that a foreign company that wishes to sell or restructure its holdings in a PRC entity can do so much more easily and quickly if it has the option of carrying out such sale or restructuring at the Hong Kong holding company rather than at the PRC company level.

Liability issues
Inserting a holding company between the parent and the WFOE also affords the parent company some protection from liability. On the mainland, the corporate veil is lifted much more easily than in western jurisdictions. By using a holding company between the foreign parent company and its PRC WFOE or JV, the foreign company can insulate itself to some degree if problems arise at the WFOE or JV level. In this situation, the Hong Kong holding company will be held responsible rather than the foreign parent company.

Ease of registration
One other simple advantage of using a Hong Kong company is that Chinese authorities are very familiar with Hong Kong companies and Hong Kong corporate documents (not to mention the fact that Hong Kong companies can be established with both Chinese and English articles of association). Both upon the set up and at certain other times, the WFOE or JV will be required to submit the corporate documents of its parent company to the PRC authorities. If the parent company is a Hong Kong company, the local PRC authorities will recognize the documents and will have an easier time processing them than would be the case for jurisdictions they have less exposure to. This makes the incorporation process (and to a more limited extent the ongoing operation) of the PRC entity more efficient.

Benefts granted by PRC government
In the last number of years there has been a concerted effort by the PRC government to integrate the economy of Hong Kong into China (particularly with the so-called ‘Pearl River Delta’13). The Chinese government has actively looked at ways to make it easier for Hong Kong companies to do business in China. The most obvious example of this is the so-called ‘Closer Economic Partnership Agreement’ (CEPA) that was signed between Hong Kong and the mainland on29 June 2003.
Free Foreign Currency Circulation

Some foreign countries will have strict foreign currency restriction when they use the foreign company to do the investment in China, while in HK, it is very easy and convenient to solve this problem if you keep a company there and open a corporate bank account, since HK does not have much limitation to foreign currency transfer, the invest capital can be transferred from HK to China very quickly without any approval steps.

Hong Kong has historically been a gateway to China. Despite the rise of major financial and trading centers in the mainland (Shanghai, Shenzhen, Beijing, Guangzhou etc.), the city has remained attractive for foreign companies expanding into the region because of its free market system, clean government, low taxes, world-class infrastructure, skilled workforce and international lifestyle, among other advantages.

For China residents, especially foreign nationals, incorporating in Hong Kong has always been a very strong alternative to setting up a business in a mainland Chinese city, where start-up. Consulting and trading are two areas where using Hong Kong has become a trend.

Consultants in China can use their Hong Kong company to bill their customers, both in China and overseas. For their China customers, providing services as company would definitely be better perceived than doing it as an individual. For international clients, one can provide China-related consulting services by using a Hong Kong company, which technically is part of China, without the price tag that comes with incorporating in mainland China.

Sole traders living in China can use a Hong Kong company to receive payments from international clients and pay their Chinese suppliers. Considering that China doesn’t tax offshore profits, and mainland China is considered offshore, this is a very attractive solution to conduct international trade without the need to rent and operate an actual office.

There are disadvantages for using Hong Kong companies to operate in China however. The first one would be the inability to receive RMB payments and bill your Chinese customers in RMB. Indeed, Chinese firms and individuals will require in most cases to pay in Chinese Yuans (or RMB, the official currency), and will need an official tax receipt (“fapiao”) to justify their expenses in their accounting records. A Hong Kong company is legally a foreign company in mainland China and as so is not able to issue such invoices. Furthermore, Chinese Yuans/RMB cannot be sent from mainland China to your Hong Kong company bank account, meaning the need for your customers to change their money into USD/HKD first which can be a burden.

Another disadvantage would be the visa and other tax/legal issues if you live in China. As we said earlier, a Hong Kong company is considered a foreign company in China and as does not entitle the owner for a residence permit in mainland China. In face of the increasing tightening of the visa regulations in mainland China, this may mean frequent trips to Hong Kong or even to your home country. This can be solved however when you set up a representative office for your Hong Kong company in a Chinese city

We are experts in Hong Kong company registration, and will get your Hong Kong company up and running with the minimum of hassle for you. You do not even need to be in Asia for us to do this for you!

Contact Tom Lee now for setting up your Hong Kong company

Email: tomlee@tommyconsulting.com, tomlee_cn@163.com,
WhatSapp/Wechat/Cell Phone: +86 18926401128, Skype: tomleeli
Tel: 86-755-25809219,Fax: 86-755-83256658

Set Up Hong Kong Company as a Special Purpose Vehicle to Invest Mainland China, Hong Kong Company Formation Procedures, Hong Kong Company Incorporation Services

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.

 

Hong Kong, Asia’s most popular city for international business has a simple, predictable and low tax system. The city only imposes three direct taxes, and filing taxes is straightforward. For the past 19 years Hong Kong has been ranked as the ‘World’s Freest Economy’ by the Heritage Foundation/Wall Street Journal. Hong Kong’s enduring appeal is built on political stability, the rule of law, free market principles, free flow of information, and English as the language of business. Hong Kong is ideally located for growing companies that want to do business with Mainland China and Asia.

 

Advantages of Hong Kong Company

Free to choose company name
Less restriction on business scope
Low tax environment encourage business development
Low register capital and no requirement on the minimum amount of a company’s paid-up capital
Gateway to China
Easily to set up international credit and get financial credit
No restrictions on investments inward or outward, No foreign exchange controls and No barriers to trade
Good reputation

 

Requirements of Hong Kong Company Formation
If the shareholder is a corporation, need to provide Business Registration certificate copy.
Company Secretary must be ordinarily reside in Hong Kong or Hong Kong Limited Company, like UWS, to handle on-going statutory compliance matters.
Registered address of the Company must be located in Hong Kong
There shall be at least one shareholder and natural director over 18 years old, Shareholder and director can be the same person and can be of any nationality
Processing Times of Hong Kong Company Formation• Online applications for Hong Kong Company Incorporation can normally be processed within a day
Paper applications will take 5 working days to get the Certificate of Incorporation and Business Registration Certificate. 

Required Information for Hong Kong Company Formation
Proposed company name (please provide at least 2-3 choices). Company Name must be unique and can be in English or Chinese or both.
Passport copy and residential address (in English) of shareholders and assigned Director.
Amount of share capital, and percentage of shareholdings; if there is more than one shareholder. HK$10,000 divided into 10,000 shares of HK$1 each is the most common and Minimum subscribed share capital is HK$1

 

Hong Kong Company Formation Procedures:
Step 1
Client engages the services of Uni-World Services.
Full information required is sent to us by fax or email.
Step 2
Payment receipt of company formation service fees to be submitted.
Step 3
Necessary documents and forms will be sent to client for shareholder’s and director’s signature.
Step 4
Upon the receipt of the signed documents, the application for the Certificate of Incorporation (CI) and Business Registration Certificate (BR) will be submitted to the Company Registry of Hong Kong. (The Certificate of Incorporation will be issued within 5 working days.)
Step 5
The order for making company seal & chop will be placed.
Step 6
Open bank account
The official establishment of the company is finally completed.

 

 

Hong Kong Company Secretarial Service
Under the Companies Ordinance (Cap. 32) of the Laws of Hong Kong, a limited company incorporated in Hong Kong should appoint a company secretary, to perform the legal liability of the company, which includes declaration of relevant organisation structure, changes of shareholders and directors to the Companies Registry, as well as contemplation of the agenda of company meetings for Board of Directors, preparation of annual general meetings of shareholders and provision of professional advisory service and advice on relevant statutory ordinances.

 

 

Our Services Include:
Preparing and keeping statutory records, such as register of shareholders and register of directors, etc.
Arranging and attending meetings of directors and shareholders, and preparing minutes of meetings
Preparing and submitting statutory documents, including annual return form
Preparing and submitting application for business registration certificate
Assisting in opening bank account
Assisting in applying for Hong Kong work visa
Deregistering the company and suspending applications for activities
Providing relevant advice on company liquidation and bankruptcy

Hong Kong Company Bank Accounts
After incorporating company, you may consider to open bank account or not depending on your company’s actual circumstances.
Local Accounts Documents Required:
Director(s)’s Passport, address proof
Business Registration Certificate
Certificate of Incorporation
Statutory record
Common Seal and stamp
Shareholder(s)’s passport and address proof
Relevant business proof are *Essential*
• Business Plan and/or Product Brochure
• Buyer and Supplier’s contract
• Shipping documents e.g. Packing List, Commercial Invoice and Bills of Lading etc.
• Company Business Card

 

Director(s) should go to the bank in person to sign the bank documents:
Hong Kong banks generally require the directors (at least 2 if more than 2) to visit the bank in person to open an account. Account signatories or a company director (if from Mainland China you must hold a Chinese passport or travel permit) should bring company documents and related materials as mentioned above to open an account in Hong Kong or Macau. 

UWS Banking Services:
Communicate with you in preparing documents required
Review all supportive documents
Understand your business mode
Submit required documents to banker and arranging bank meeting.
Advice on answering bank interview questions shortly before your meeting with bank.
Accompany you to bank for opening bank account.
Follow up with bank closely.

 

We are experts in Hong Kong company registration, and will get your Hong Kong company up and running with the minimum of hassle for you. You do not even need to be in HongKong for us to do this for you

 

 

Contact Tom Lee now for Hong Kong company registration

Email: tomlee@tommyconsulting.com, tomlee_cn@163.com,
WhatSapp/Wechat/Cell Phone: +86 18926401128, Skype: tomleeli
Tel: 86-755-25809219,Fax: 86-755-83256658

Foreign Invested Partnership Enterprises Registration in ShenZhen, Set Up Foreign Invested Partnership Enterprises (FIPE) Documents Required

Foreign Invested Partnership Enterprises Registration in ShenZhen

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

 

Shenzhen is the best choice for business-doing in China. Shenzhen is situated in the Pearl River Delta. It is the first Special Economic Zone since China carried out reform and open-door policy 30 years ago. Shenzhen has an area of 1953 square km2 and a population of more than 12 million. Shenzhen is the best city both for living and working in China the fastest growing city in the world. In Shenzhen you can enjoy sound infrastructure and nice industrial chain for trading, manufacturing and value investment. Since Shenzhen is bordering Hong Kong, you can take lots of advantages and opportunities from “one country, two systems” policy

 

In Mainland China, there are 4 modes of business presences for foreign investors: WFOE(65%), Representative Office(20%-), FIPE(10%+), Joint Venture(5%). FIPE becomes more and more popular among young entrepreneurs with their new start ups in China as it requires no registered capital but the FIPE still could hire people, collect payments, issue invoices, apply for work & residence in China freely. It's not a surprise that most people you meet in China may not know anything about FIPE as it's relative new and government is not promoting on this.

 

Condition(s) of establish FIPE in China
A partnership enterprise must meet the following requirements:
1. At lease 2 or more partners
2. A written partnership agreement;
3. Capital contribution subscribed to or actually paid by the partners;
4. A business name and an office in an office building for the partnership enterprise;

 

Documents required
1. Corporate investor as partner: Certificate of Incorporation, or Articles of formation or equivalent document certified by Chinese embassy or Chinese consulate overseas For individual investor as partner: Passport copy be certified by Chinese embassy or consulate
2. Residential Address Proof (e.g. utility bill issued within 3 months, valid driving licenses with address, National Identity card with address, etc.) be certified by Chinese embassy or consulate
3. Bank Reference letter be certified by Chinese embassy or consulate (Managing partner only)
4. Passport copy of: (i) Parent company's director (ii) China Partner Enterprise's general partner and (iii) China Partner Enterprise's partners China general partner and partners provides: 6 photos (2 inches size), brief resume. Registered capital; Business Scope; 8 proposed Chinese names of China business Office address in China, leasing contracts, certificate of real estate ownership, and landlord identification

 

GENERAL TAX INFORMATION
No corporate income tax required. The partners shall pay their respective share of the partnership income.

 

PROFIT REPATRIATION
China Government allows Foreign Invested Parnter Enterprises remit their profits out of the country and such remittances do not require the prior approval of the State Administration of Foreign Exchange (SAFE). Dividends cannot be distributed and repatriated to oversea if the losses of previous years have not been covered while dividends not distributed in previous years may be distributed together with those of the current year. Repatriating the Registered Capital to home countries is forbidden during the term of business operation.

 

 

Foreign Invested Partnership Enterprises (FIPE) Setting 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

 

 

Contact Tom Lee now for Set Up Foreign Invested Partnership Enterprises (FIPE)  in shenzhen

Email: tomlee@tommyconsulting.com, tomlee_cn@163.com,
WhatSapp/Wechat/Cell Phone: +86 18926401128, Skype: tomleeli
Tel: 86-755-25809219,Fax: 86-755-83256658

Introduction to Joint Venture company Registration in Shenzhen China, set up Joint Venture company in Shenzhen as china market entry strategies

Shenzhen is the second largest city in Guangdong province, a regional manufacturing and financial hub and one of the richest cities in China. The city, originally a village north of Hong Kong, was first developed as a special economic zone when economic reforms were introduced in the late 1970s. After over 30 years of sprawling, it has become one of China's top four first-tier cities along with Shanghai, Beijing and Guangzhou. With a population of over 20 million, the city's GDP grew 10% to RMB1.3 trillion in 2012. The Shenzhen Stock Exchanges, one of the only two on the mainland, focuses on small and midsized companies as compared to Shanghai's where larger state-owned companies are traded. With sound infrastructure and easily recruited many talented personnel in Shenzhen, Foreign company can take this advantage to set up Joint Venture company in Shenzhen as china market entry strategies

For a long time, setting up a Joint Venture was the only option for foreign investors wishing to enter the Chinese market. A Joint Venture consists of a Chinese and a foreign investor.

In China two different kinds of Joint Ventures exist: Equity Joint Ventures (EJVs) and Cooperative Joint Ventures (CJVs).

EQUITY JOINT VENTURES
Equity joint ventures are the second most common manner in which foreign companies enter the China market and the preferred manner for cooperation where the Chinese government and Chinese businesses are concerned. The Chinese authorities encourage foreign investors to use this form of company in order to obtain exposure to advanced technology and new management skills. In return, foreign investors can enjoy low labor costs, low production costs and a potentially large Chinese market share.

Normally operation of a joint venture is limited to a fixed period of time from thirty to fifty years. In some cases an unlimited period of operation can be approved, especially when the transfer of advanced technology is involved. Profit and risk sharing in a joint venture are proportionate to the equity of each partner in the joint venture, except in cases of a breach of the joint venture contract. 

Share holdings in a joint venture are usually non-negotiable and cannot be transferred without approval from the Chinese government. Investors are restricted from withdrawing registered capital during the live of the joint venture contract. Regulations surrounding the transfer of shares with only the approval of the board of directors and without approval from government authorities will probably evolve over time as the size and number of international joint ventures grow.

There are specific requirements for the management structure of a joint venture but either party can hold the position as chairman of the board of directors. A minimum of 25% of the capital must be contributed by the foreign partner(s). There is no minimum investment for the Chinese partner(s).

COOPERATIVE JOINT VENTURES
In a Sino-Foreign Cooperative Venture (also known as Contractual Joint Venture), the parties involved may operate as separate legal entities and bear liabilities independently rather than as a single entity. 

A cooperative venture may also be registered as a limited liability entity resembling an equity joint venture in operation, structure, and status as a Chinese legal entity. There is no minimum foreign contribution required to initiate a cooperative venture, allowing a foreign company to take part in an enterprise where they preferred to remain a minor shareholder. The contributions made by the investors are not required to be expressed in a monetary value and can include excluded in the equity joint venture process can be contributed such as labor, resources, and services.

Profits in a cooperative venture are divided according to the terms of the cooperative venture contract rather than by investment share, allowing a more flexible schedule for return on investment in cases where one investor provides cash while the other party's investment is primarily in kind.

Greater flexibility in the structuring of a cooperative venture is also permissible including the structure of the organization, management, and assets. There is no term for unlimited terms in cooperative ventures, but also no provisions for the term of the duration. The term of the cooperative venture contract may be renewed subject to the consent of the parties involved and approval from the examination and approval authorities. The foreign investor is permitted to withdraw their registered capital or a portion thereof from the cooperative venture during the duration of the cooperative venture contract.

Because of the unique privileges and added features offered to the foreign party in a cooperative venture, trade unions must be allowed to represent the employees in employment matters to protect the interests of the employees. 

Joint ventures with Chinese companies offer one of the most effective ways for western companies to tap the massive China market. In a sino-foreign joint venture, the Chinese company usually brings the labour, land use rights and factory buildings, while the foreign company delivers the necessary technology and key equipment, as well as the capital. If the joint venture is based on a cooperative contract in which issues like the terms of cooperation, the allocation of earnings, the ownership of property upon the termination of the contract, the sharing of risks and losses, etc are laid down, it is called a cooperative joint venture (CJV). Whereas a sino-foreign Equity Joint Venture (EJV) is a limited liability company, the share holdings in which are usually non-negotiable and cannot be transferred without approval from the Chinese government. Investors are restricted from withdrawing registered capital during the life of the equity joint venture contract. 

As the investment regulation and business environment changes in China, less and less foreign investor use joint venture as the investment vehicle. RO and WFOE are now most commonly used JV is fading out because of the practical difficulties in :
- picking the proper China partner
- management
- technology transfer
- profit sharing, etc

There are three primary differences between an EJV and a CJV:
While an EJV is always a legal person, and thus a limited liability company, a CJV can be a legal as well as a non-legal person. The latter option means the partners of the joint venture would be personally liable for any losses the company might make in the future. 

In an EJV the division of profits has to take place equivalent to the ratio of the capital contributions made by the parties, while the profit division in a CJV can take place according to the parties' wishes. A CJV is thus a lot more flexible than an EJV. 

In a CJV a party may, besides contributing registered capital, provide for so-called cooperative conditions, e.g. market access rights. Before applying for the establishment of a joint venture, the following documents have to be at hand:
The necessary work and resident permits for the legal representatives: 

The approval and corresponding certificate from various relevant authorities like the Planning Bureau, the Public Security Department, the Foreign Economic and Trade Bureau, etc.The approval from the Industrial and Commercial Registration Office to use a certain company name. A report of corporate capital verification issued by a Chinese public accountant. 

Setting up a Joint Venture requires the help of an expert. This is a brief overview of the most important steps:

1. Fill out the application form (sign the agreement);
2. Company name search & confirmation;
3. Pay for the services;
4. Submit the needed documents;
5. Check the documents;
6. Prepare for the statutory documents; Let the investors sign the documents personally, and then submit all the documents to the government
7. Keep clients informed of the processing.
8. Finish processing in 40-80 working days; (it depends on the registered address and business scope)
9. Hand over all the company kit to clients;
10. Sign the receipt.

Setting up a Joint Venture 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

Contact Tom Lee for Setting up a Joint Venture company in shenzhen now

Email: tomlee@tommyconsulting.com, tomlee_cn@163.com,
WhatSapp/Wechat/Cell Phone: +86 18926401128, Skype: tomleeli
Tel: 86-755-25809219,Fax: 86-755-83256658