Officially
launched on 1 April 2017, the Chongqing Pilot Free Trade Zone (FTZ) forms
part of the third batch of government-endorsed pilot FTZs. Covering
an area of 119.98 sq km, the zone consists of three sub-zones: The Liangjiang
Area (66.29 sq km inclusive of the Chongqing Lianglu Cuntan
Bonded Port Area (8.37 sq km)), the Xiyong Area (22.81
sq km inclusive of the Chongqing Xiyong Comprehensive Bonded Zone (8.8
sq km) and the Chongqing Railroad Bonded Logistics Centre (Type
B) (0.15 sq km)) and the Guoyuangang Area (30.88 sq km).
Development
Goals
In accordance
with the Overall Plan for
the China (Chongqing) Pilot FTZ, as approved by the State
Council, over the next three to five years, the Chongqing FTZ will
seek to establish a high-level, high-quality free trade park in line with
accepted investment and trade facilitation practices, while also nurturing a
cluster of high-end industries and maintaining efficient and convenient
oversight. It will also look to deliver a high standard of financial services,
ensure the maintenance of a well-regulated and legally-compliant operating
environment and provide a model of good practice for the wider business community.
It will also oversee the construction of an international logistics hub, a port
and an inland open-economic highland designed to meet the goals outlined under
the terms of both the Belt and Road Initiativeand the Yangtze
River Economic Belt development programme. Overall, it will also look
to advance the opening up of the western region’s gateway cities, while
bringing to full fruition the priorities identified as part of the wider
western region development initiative.
Within the FTZ,
a special customs supervision area will look to offer enhanced trade
facilitation through the launch of bonded processing, logistics and services.
Other areas within the site will look to develop open investment strategies,
refine the existing systems for investment management, provide enhanced
supervisory regimes and promote innovative financial practices, while actively
cultivating high-end manufacturing and the professional services sector.
Foreign
Investment Management
Under the terms
of the Special
Administrative Measures (Negative List) Relating to Foreign Investment Access,
as promulgated by the State Council, a series of special management
measures covering those businesses and industries deemed unsuitable for foreign
investment are to be implemented across the 11 FTZs currently
operating on the mainland. In the case of any sectors not specified on the
negative list, the current practice of advance approval for foreign-invested
projects, as well as the established process of examining and approving any
foreign-invested enterprise’s contracts and articles of association, is to be
replaced by filing requirements more in line with the system specified for
domestic investors.
Any special
administrative measures in place relating to national security, public order,
public culture, financial prudence, government procurement, subsidies, special
procedures and tax-related matters remain in force even if such sectors are not
specified on the negative list. Furthermore, in the case of sectors related to
national security, any foreign investment is also subject to scrutiny under the
terms of the Tentative
Measures for the National Security Review of Foreign Investment in Free Trade
Zones.
Positioning of
Sub-zones
Liangjiang Area
This site will
have a primary focus on nurturing a cluster of high-end industries, with a
particular emphasis on high-end equipment, core electronic parts, cloud
computing and biomedicine. In terms of services, it will look to develop
specialties in the fields of headquarter management, e-commerce, exhibitions,
warehousing, distribution, professional services, financing/leasing, and
R&D/design. These will form part of wider moves to open up and foster
innovation within the financial industry, accelerate a range of
innovation-driven development strategies and promote the clustering of a number
of factors necessary to optimise the local production chain, including
logistics, technology, human resources and the provision of capital.
Xiyong Area
Establishing a demonstration
site showcasing the transformation and upgrade options for trade processing
will be the primary focus here. As an additional priority, work will also be
undertaken to develop a number of manufacturing sectors, particularly with
regard to electronic information and smart equipment. In terms of the services
sector, the focus will be on bonded logistics, transshipment/distribution and
the optimization of the processing trade.
Guoyuangang Area
The focus here
will be on establishing a multi-modal logistics transshipment centre, as well
as on developing a range of related services, including international
transshipment, consolidation and distribution. Consideration will also be given
to the development of innovative manufacturing facilities.
Policy and
Regulatory Updates
For the latest
information on the China (Chongqing) Pilot Free Trade Zone, please
consult the following website:
To facilitate
people who want to invest and set up business in China (Chongqing) Pilot Free
Trade 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 Owned
Enterprise (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 a
Liaison 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 Limited
liability 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 of
Establishment of Foreign Invested Partnership Enterprises (FIPE) in China
istaking 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 China
becomes 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 Chongqing 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 Chongqing 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 Chongqing China, drafting
privacy policies and structuring commercial transactions
TCBC will manage all aspects of incorporation to get you a
business license in Chongqing 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
company registration in China (Chongqing) Pilot Free Trade Zone now
Going through the procedure of theCompany Registration in China you will certainly realize that it is never straightforward to include a business in China. So before deciding to incorporate a business in China you need to think about the alternatives, whether it is absolutely necessary to include a business, or your task can be finished by means of an Umbrella business.
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