Brief Introduction To Guangzhou Economy,Corporate Formation Company Registration Set Up Business In Guangzhou China

As the birthplace of Maritime Silk Road in China, Guangzhou has always been an important port city. It has prosperous economy and trade, and open its arms to the merchants from all over the world. In 2014, the GDP volume of Guangzhou reached 1,670 billion yuan, with an increase of 8.6%. The total import and export value amounted to 130.6 billion U.S. dollars, up 9.8%. The proportion of tertiary industry continued to rise, and high technology industry, strategic emerging industry and new businesses saw faster expansion. In 2014, Guangzhou was honored the best mainland commercial city by Forbes China for the fourth time. 

Agriculture In 2014, the gross output value of agriculture in Guangzhou reached 40.167 billion yuan, with a growth of 0.8% year on year. The planting industry and animal husbandry sustained stable growth. 

Industry Traditional competetive industries such as equipment manufacturing, food processing, textile & garment and shipbuilding enjoyed steady development, and new business types including 3D printing and industrial robot grew rapidly. In 2014, the added value and gross output value of industries above a designated scale were 485.96 billion yuan and about 1.82 trillion yuan, respectively. 

Tertiary Industry The logistics industry developed steadily. In 2014, the tonnage mileage in Guangzhou was 859.62 billion tons per kilometer, passenger turnover was 249.59 billion persons per kilometer, passenger traffic was 980 million person-time, and airport cargo throughput was more than 1.89 million tons. The gross revenue of tourism was 252.18 billion yuan, and the number of tourists staying overnight in Guangzhou was over 53.30 million person-time. 

Innovation-driven Initiative In order to build national innovative city, Guangzhou has implemented the ‘double growth plan’ on expenditure for technical research and development and incubator for high-tech businesses, boosted innovation projects in health and medical treatment, intelligent equipment and mobile Internet application, carried forward the establishment of innovative platform, and motivated enterprises’ innovation vigor. In 2014, the output value of new high-tech product achieved by industrial enterprises above designated size was 800.14 billion yuan. 

Finance The financial reform and innovation policy for Nansha New Area, a financial innovative platform, was approved. More financing institutions entered and are stationed in its financial function area, the Financial Asset Exchange Center were listed and has been put into operation, its carbon emissions trading volume accounted for 62% of the whole China, and the annual turnover of Guangdong Plastics Exchange exceeded 400 billion yuan. In 2014, five more listed enterprises entered Nansha New Area. The premium income reached 601.80 billion yuan. 

Foreign Trade The 21st Century Maritime Silk Road has been opened up, the pilot free trade zone was successfully established, new businesses including cross-border electronic commerce, service outsourcing and bonded logistics were developed, and open economy developed with a steady pace. In 2014, Guangzhou achieved the total import and export value of 130.60 billion U.S. dollars. 

International Transportation Hub In 2014, Baiyun International Airport had a passenger throughput of more than 54.78 million person-time, ranking No. 2 in China; its cargo throughput was over 1.89 million tons, among the top 15 airports in the world. The cargo throughput of Guangzhou Port reached 482 million tons, and the container throughput was 16.38 million TEUs, ranking the 5th and 8th among all the ports in the world, respectively. 

Consumption Guangzhou upgraded and rebuilt its key business areas, sped up the construction of international convention center, logistics center and purchasing center, improve the function of commerce and trade in them and launched a series of activities on commerce, trade, and exhibition. It launched the pilot projects on the transformation of professional wholesale markets, facilitated the industrial upgrading, promoted new-type consumption such as information, culture, health and tourism, and motivated the vigor of consumption. In 2014, the whole city realized the total retail sales of consumer goods of 769.79 billion yuan. Newly-developing consumption needs represented by communication-electronics and e-commerce were in great demand, with a turnover achieved by online shops of 50.97 billion yuan. 

Employment Guangzhou has taken several employment promotion measures. In 2014, newly employed persons in cities and towns were 270.8 thousand in number, 175 thousand registered unemployed people got new jobs, and the registered urban unemployment rate was 2.26%.  

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 )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

Contact Tom Lee for business set up in Guangzhou now.