1. Setup Business in Shenzhen China, set up company in Shenzhen as china
market entry strategies
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 . 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. 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
Shenzhen Business Formation 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 register 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
2. 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 invest in ShenZhen. 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
3. Advising on formation of WOFE and business structures ,managing and controlling WOFE in China
drafting privacy policies and structuring commercial transactions
TCBC will manage all aspects of incorporation to get you a business license in ShenZhen 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)
- Hong Kong Holding Company
Please visit Http://www.tommyconsulting.com