For a higher
concentration of electronic information industry, the Science City has planned
another area of 8.73sq.km., which will be used to build an electronic
information industrial base. The sound industrial environment in Guangzhou
constantly attracts the world’s large-scale electronic information enterprises to
settle in the Development District----ST STMicroelectronics from France has
signed up to establish an integrated circuit research and development center in
the Science City; Sony (China) has invested 30 million USD to establish Sony
Electronics Huanan Co., Ltd., which engages in design and manufacturing of
electronic products; Sanyo Electric intends to invest 20 million USD to build
an enterprise specializing in auto electronic products manufacturing in Huangpu
District; Nanco Electronics, the first manufacturer of 8-inch integrated
circuit chip in China, has invested 586 million USD totally, including 186
million USD for the initial phase.
Six major
competitive industries of software design, research & development and
creative design, commodity inspection and detection, financial innovation,
consulting and management services and modern logistics services have taken
shape gradually. There are about 100 software enterprises with the operation
revenue of 2700 million yuan RMB, among which 3 enterprises have passed
CMM/CMMI certification, and Superdata Software and Bamboo Computer have passed
CMMI Level 5 certification. 15 countries (regions) have invested to establish
over 50 service outsourcing enterprises, with the aggregate investment of about
200 million USD, 45％ of which is invested in information
technology outsourcing (ITO) and 55％ is invested in business process
outsourcing (BPO). The annual number of service outsourcing contracts is over
30, with the total revenue of about 200 million USD. Currently, the major service outsourcing enterprises include Microsoft, IBM, Oracle, Intel, Dongya Electronic and Friends Software, etc.
To facilitate people who want to invest and set up business in Guangzhou Science City, 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 consulting in Guangzhou now.
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