Brief Introduction To Guangzhou Nansha Economic and Technological Development Zone,Set Up Business,Company Registration,Corporate Formation In Guangzhou Nansha

Facts & Figures (2013)

Rating	AA
Year of Establishment	Guangzhou Nansha ETDZ: 1993  Guangzhou Nansha
Land Area	Guangzhou Nansha ETDZ: 27.6 km2 Guangzhou Nansha EPZ:1.4 km2
Location	Nansha District, Guangzhou
GDP	RMB 40.45 billion (Jan-Jun 2013)
FDI	N.A.
Utilized FDI	US$ 234 million (Jan-Jun 2013)
Major Investors	BASF, GM, Toyota, JFE, Mitsubishi, Meiko, Lonza, China State Shipbuilding Corp, China Erzhong, Dongfang Electric, Guangzhou Iron & Steel, Dongling Group, Liby, Idemitsu, Hitachi
Major Industries Encouraged	Guangzhou Nansha ETDZ: plastics, chemicals, electronics, food processing, shipbuilding  Guangzhou Nansha EPZ: Information Technology, optoelectronics, precision machinery, home appliances

Introduction

Guangzhou Nansha Economic and Technological Development Zone (Guangzhou Nansha ETDZ) was approved as a state-level development zone by the State Council in 1993. It covers an area of 27.6 sq km. Guangzhou Nansha Export Processing Zone (Guangzhou Nansha EPZ), located within Guangzhou Nansha ETDZ, won approval to be a state-level development zone in 2005. Covering an area of 1.4 sq km, the processing zone commenced official operations in 2007. Guangzhou Nansha EPZ is the second export processing zone that was founded in Guangzhou after the Guangzhou Export Processing Zone.

The Guangzhou Nansha ETDZ is located in Nansha District in the southern part of Guangzhou, the capital of Guangdong Province. Guangzhou's downtown area is 54 km away. Guangzhou is the center of the Pearl River Delta, and all the major cities of the delta are within a 1.5-hour drive. The zone is a mere 71 km from Hong Kong and 75 km from Macau.

Guangzhou Baiyun International Airport and Shenzhen Bao'an Airport are 54 km and 70 km from Guangzhou Nansha ETDZ. Nansha Port is an important part of Guangzhou Port, which is the fourth largest port in China and had handled over 10 million TEUs in 2013. The Guangzhou-Shenzhen-Zhuhai Expressway and the Humen Bridge, which connects Humen in Dongguan and Nansha in Guangzhou, are also close to the zone.

Investment Climate

In the first half of 2013, GDP of Guangzhou Nansha ETDZ reached US$40.45 billion, reflecting a year-on-year increase of 39.7%.

Guangzhou Nansha ETDZ encourages investment in plastics, chemicals, electronics, food processing, shipbuilding and other high-tech industries, while Guangzhou Nansha EPZ encourages investment in IT, optoelectronics, precision machinery and home appliances. In the first six months of 2013, the value-added industrial output of the zone amounted to RMB 30.07 billion, up 31.36% year on year.

The automobile industry is the strongest industry in the Nansha ETDZ. Japan-based Toyota is a major investor in the zone. Guangzhou Toyota Motor Co Ltd, a joint venture between Guangzhou Automobile and Toyota Motor Corp, was set up in 2004 in Guangzhou Nansha ETDZ with a registered capital of RMB 1.3 billion. The venture involved a total investment of RMB 3.8 billion.

In January to June 2013, the utilized FDI of the zone amounted to US$234 million, up 1.57% year on year. Over 40 Fortune 500 enterprises have commenced businesses in Nansha ETDZ. Besides Toyota, major investors in the zone include BASF, GM, JFE, Mitsubishi, Meiko, Lonza and large domestic firms such as China State Shipbuilding Corp, China Erzhong, Dongfang Electric, Guangzhou Iron & Steel, Dongling Group and Liby. In the first half of 2013, the export value rose 52.94% to US$3.02 billion.

Winning Edges

• The zone enjoys close proximity to Hong Kong, Macau and major cities in the Pearl River Delta.
• The transportation in the zone is convenient.
• The zone has a strong automobile and auto parts industry.
• Nansha Port is an important part of Guangzhou Port. There is also a dock specializing in the handling of chemicals and chemical products.

Limitations

• Operating costs are high.
• The zone has a smaller economy and industrial output than its largest competitor in Guangzhou, Guangzhou Development District.

The Administration Committee

Address: No. 1 Gangqian Avenue, Nansha, Guangzhou, P.R. China 511458
Tel: 86-20-84688220, 84986688
Fax: 86-20-84687763
Website: www.gzns.gov.cn

Source of Facts & Figures: Statistic Bureau of Guangzhou Nansha Economic and Technological Development Zone

To facilitate people who want to invest and set up business in  Guangzhou Nansha Economic and Technological Development Zone, 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 )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

Contact Tom Lee for business set up in  Guangzhou Nansha Economic and Technological Development Zone now.