1.Complete Infrastructure
Guangzhou is the south gate of China and a
global hub network is taking shape. Guangzhou Baiyun International Airport has
more than 1,200 flights per day, with nearly 180,000 people and5,000 tons of
cargo going in and out. Port of Guangzhou is the sixth largest port in the
world that has seaborne trade with more than 400 ports in more than100
countries and regions.
Setting off from Guangzhou, the
high-speedrail can reach most of the major cities in the country within one
day, and were having more trains connecting China to Europe and South Asia
under the Beltand Road Initiative. In terms of seaports, in 2017, the Port of
Guangzhou had acargo throughput of 590 million tons and a container throughput
of 20.37million TEUs, ranking the fifth and the seventh respectively in the
world. Speaking of airports, Baiyun International Airport is the national hub
for the promotion of jointly building the Belt and Road Initiative. In 2017,
the passenger throughput was 65.83 million, ranking the third in the country.
In terms of railways, Guangzhou railway hub is one of the four major railway
hubs in China. As for highways, Guangzhou is one of the major highway hubs in
the country and one of the cities that connect with the largest number of
highways in the national network. With regard to information ports, Guangzhou
is one of the three communication hubs in China and the Internet exchange point
as well as having China’s top three international export bandwidth.
2.Strong Industrial Base
The manufacturing and service sectors in
Guangzhou are the most advanced and complete in South China. The proportion of
the three industries in Guangzhou is 1.09:27.97:70.94, and the financial
deposit and loan balances in Guangzhou are RMB 5.14 trillion and RMB
3.41trillion respectively. According to the plan, Guangzhou will implement
high-quality development requirements, promote the coordinated development of
the real economy, scientific and technological innovation, modern finance and
human resources, and vigorously develop emerging industries such as new
generation information technology, artificial intelligence,
bio-pharmaceuticals, new energy and new materials to build the new pillars of
the industrial system. By March in 2018,297 Fortune Global 500 companies have
invested in 921.
3.Strong Innovation and Entrepreneurship
Support
Guangzhou is the education center in South
China. Two-thirds of the universities of Guangdong Province are located here.
97% of all state key disciplines, and state key laboratories in Guangdong
Province are in Guangzhou. By 2017,Guangzhou already had 3.26 million
college-educated talents. Six Nobel laureates, 79 academicians of the two
academies, and 281 experts of the Thousand Talents Program are working in
Guangzhou. Prof. Tang Benzhong, an academician of the Chinese Academy of
Sciences recruited by the South China University of Technology, is the first one
to propose the concept of aggregation-induced emission in the world and won the
first prize of the 2017National Award for Natural Science. Guangzhou was
approved as the national independent innovation demonstration zone and the core
area for the comprehensive innovation and reform. The 261 incubators and the
hatched area of9.09 million square meters in Guangzhou have given birth to
8,700 high-techenterprisesand a total number of 169,000 technological
innovation enterprises. Guangzhou Science City was listed as one of the first
regional demonstrationbases for innovation and entrepreneurship in China. With
institutions and carriers such as the Guangzhou Intellectual Property Court,
Guangzhou Intellectual Property Exchange Center, the National Brand Innovation and
Venture (Guangzhou)Base, and the Trademark Examination Cooperation Guangzhou
Center of the State Administration for Industry and Commerce of China, strong
support and protection for enterprises and individuals in innovation and
entrepreneurship can be provided in Guangzhou.
4.Rich Institutional Innovations
The construction of a national innovation
central city is vigorously promoted in Guangzhou and the related policy support
is continuously strengthened. The “1+9”scientific and technological innovation
policy and other relevant policies have been introduced, covering the
transformation of scientific and technological achievements, the recruitment of
and incentives for talents, the science and technology finance, and other
aspects, to form a comprehensive policy system supporting innovation and
entrepreneurship. Among them, R&D investment grants for enterprises,
support for the construction of new R&D institutions, support given to the
enterprises for the establishment of R&D institutions, subsidies for
science and technology finance, and support for the high-tech companies and
maker space are taking the lead in China.
Guangzhou has strong innovative research
capabilities. The city currently has 19 state key laboratories and 213
provincial key laboratories, accounting for 70% and69% of the total number in
the province respectively. In 2017, the number of patent applications in
Guangzhou exceeded 100,000 for the first time, and a number of growth
indicators led the country, including the number of invention applications,
invention authorizations, PCT international patent applications, and effective
invention patents led the country.
The status of the enterprise as an
innovation subject further improves. In 2017,there were 40,000 new
technological innovation companies in Guangzhou, contributing to the total
number of 169,000, of which the net increase of high-techcompanies was nearly
4,000, making the total number about 8,700.
In the Nansha Free Trade Zone, a total
number of 376 reform and innovation achievements have been made, among which 67
are original in the country, 19have been replicated and promoted nationwide, 90
have been replicated and promoted in the province, and 140 have been
implemented in the city.
5.Convenient Government Services
Guangzhou strives to streamline
administration, delegate more powers to lower-level government and society,
improve regulation and optimize services to stimulate the vitality of the
market. In order to reduce the number of pre-approval items for industrial and
commercial registration, the city's industrial and commercial
registrationpre-approval items have been continuously reduced to 11 items from
127 before the reform of the commercial system.
Guangzhou implemented the reform of
“Multiple in One and One Code for One License” so that the applicant only needs
to submit one set of materials to a window, and then can receive a license. The
time required to start a company reduces to three working days under the
current one license policy from the previous 20 working days. The
classification of commercial registration and record approval deadlines shall
be subject to the reduction of the time. A mechanism that permits a company to
register without submitting all required documents on the registration day
which shall be provided before an agreed due date shall be implemented on trial
basis. All registration and approval procedures shall be completed within three
working days. The establishment of registration and approval shall be completed
within eight working days. Eight simple registration items such as changing
licenses and taking records shall be completed on the spot. In this way, the
speed of the approval procedure has increased by 88%.
The Single Window for international trade
and customs integration is put into full implementation. International trade
“Single Window” version 2.0 is exempted from customs declaration fees. Border
inspections, maritime affairs and port administration declarations are all
reported through the “Single Window”, realizing “one platform, one submission,
one standard” for enterprise’s customs declaration and “one single access, one
declaration, one settlement” for multi-department operations at ports.
6.Livable Environment
Guangzhou has provided its citizens with
convenient living services which are greatly improved by successfully creating
a clean, safe and orderly urban environment. The air quality of Guangzhou is
the best among the five central cities in China. The annual average
concentration of PM2.5in 2017 is 35 micrograms/cubic meter. It has become the
first national centrality and the first provincial capital with a GDP exceeding
RMB one trillion and permanent population of over ten million that has achieved
PM2.5 compliance. The urban greening rate is 41.5% and the forest coverage rate
is 42%. Cantonese cuisine is one of the eight major cuisines in China. “Food in
Guangzhou” is well known both at home and abroad. There are 10 international
schools and large number of international medical institutions, catering
companies and places of worship in Guangzhou. 52 museums and memorial halls
such as Guangdong Museum and the Archaeological Site Museum of Nanyue Palace
are located in Guangzhou with another 19 public libraries, providing investors
with convenient living environment
To facilitate people who want to invest and set up business in Guangzhou, 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 OwnedEnterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no 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.
Representative Office (RO) is aLiaison 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 Limitedliability 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 ofEstablishment 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, Guangzhou, 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 (Mainland China 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 Chinabecomes 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 Guangzhou 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 . Tommy China Business Consulting has direct connections in the local government
Since 2006, TCBC has been focusing on consulting services for our clients to invest in Guangzhou China. 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. Advising on formation of WOFE and business structures, managing and controlling WOFE in Guangzhou China, drafting privacy policies and structuring commercial transactions
TCBC will manage all aspects of incorporation to get you a business license in Guangzhou China. We offer a range of company formation services including helping you to set up:
-Wholly Foreign Owned Enterprises (WFOE )
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises (FIPE)
Contact Tom Lee for business set up in Guangzhou now.
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