Guangzhou government issued a document on Several Measures
for Further Optimizing the Business Environment in Guangzhou in early
April to further implement the reform of the business environment.
The document covers 43 measures in total, including building an
intelligent government affairs platform, striving for two national pilot
demonstration areas, and carrying out crucial
projects to improve the business environment in 10 key areas,
such as the establishment of enterprises, the handling of building permits,
real estate registration, payment of taxes, cross-border trade, access to
credit and intellectual property protection.
People deal with their businesses through the
intelligent government affairs system. [Photo/Nanfang Daily]
The intelligent government affairs platform aims to achieve the
sharing of government data, the integration of corporate approvals and
establish a connection between government services and required data.
Based on the platform, Guangzhou will
implement the joint examination and approval of electric, water and
gas external line projects, and comprehensively integrate planning, housing
construction, public security, transportation, municipal, water and other
enterprise-related approval matters by the end of April.
The city will also realize online services in key areas and
for high-frequency issues by the end of June, integrating the service
windows of government departments into one comprehensive window to handle
issues easily by the end of December.
People consult and handle business at the comprehensive windows.
[Photo/Nanfang Daily]
The document demands the promotion of Guangzhou
High-tech Zone to a national business environment reform and
innovation experimental zone and of Nansha Free Trade Zone to a
national business environment reform special zone, as well as a
cooperation demonstration zone for the Guangdong-Hong Kong-Macao Greater
Bay Area.
The Guangzhou High-tech Zone and Nansha Free Trade Zone will
establish open and interoperable regional innovation systems, gather innovative
elements to attract and connect global innovation resources, and promote
effective integration with Hong Kong and Macao commercial systems, industry
supervision, and urban planning and construction.
Among all the crucial projects, water, electricity and gas
access are the most concerning issues for enterprises and citizens. The
document makes clear that the processing time for high-voltage power
access shall not exceed 15 working days, and the processing time for
low-voltage power access shall not exceed 3 working days; the total
administrative time for water installation reporting shall not exceed 14
working days; and the total time for administrative approval of gas access
projects will also not exceed 14 working days.
In addition, the document mentions that the start-up time of an
enterprise will be reduced to 2.5 working days in 2019, and to
two working days in 2020.
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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