Guangdong Development District [Photo/msweekly.com]
Approved by the State Council in 1984, Guangzhou Economic and Technological Development District (广州开发区) was one of the first national economic development zones in China.
By 2002, together with Guangzhou High-tech Industrial Development Zone, Guangzhou Export Processing Zone and Guangzhou Free Trade Zone, it formed part of the Guangzhou Development District.
Located in the administrative scope of Huangpu district, Guangzhou Development District serves as a driving force for Guangzhou's economic growth and scientific innovation.
The comprehensive strength of Guangzhou Development District has been ranked in the top three of the country over the past 30 years. The district is home to 1,580 enterprises above designated size, 31 listed companies, more than 3,000 scientific companies including 442 national high-tech enterprises and 29 listed on the New Third Board. The district also has built 3.45 million square meters of incubators and accelerators. Over 3,100 foreign-funded companies and 80 international companies have set up research institutions in the district and Global Fortune 500 companies have invested in 120 projects.
The district was one of the first pilot areas for Sino-European and Sino-Israeli cooperation as well as a hot spot for innovation and entrepreneurship, attracting 32 academicians, 50 experts under the national Thousand Talents Program and 3,000 other innovative talents. It offers strong support to Guangzhou's efforts in building a global innovative resource gathering area and a demonstration area for innovation-driven development.
Guangzhou Development District focuses on economic development including industrial growth, industrial park construction and investment attraction, while Huangpu district government puts social development as a priority, including city construction, social management and public services. The two districts will combine their resources and utilize each other's advantages to seek coordinated development to create a powerful engine for east Guangzhou's economic and social growth.
To facilitate people who want to invest and set up business in Guangzhou Development District, 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 Development District now.
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