Located on the
Yangtze River, Chongqing is now the largest and most populous of China’s four provincial-level
municipalities, and the only one in western China. With a population of more
than 31,442,300, Chongqing is China’s largest city.
In 1997, the
Eighth National People's Congress merged Chongqing with neighboring counties
creating the new Chongqing Municipality, independent of Sichuan Province. The
Chongqing Municipality has become the spearhead of China's efforts to develop
the western interior regions and coordinate the resettlement of residents from
the reservoir areas of the Three Gorges Dam project.
In recent years,
Chongqing has attempted to promote hi-tech, knowledge-intensive industries.
Chongqing makes up for its remote location with its highly-educated and
relatively cheaper labor costs. In addition, Chongqing has invested
substantial sums in infrastructure development. The network of roads and
railways connecting Chongqing to the rest of China have also been expanded and
upgraded in order to reduce the logistical cost of distributing and
transporting goods in and out of Chongqing. In recent years, Ford Motor Company
and Mazda have launched a joint-venture project with Chongqing Changan
Automobile CO Limited , the largest local automobile manufacturer to open an
assembly plant in the area with a capacity of 270,000 vehicles per year.
In addition to
manufacturing, Chongqing has a large agricultural and mining industries.
Chongqing also is rich in natural resources, with more than 40 kinds of
minerals. Coal reserves are estimated to be 4.8 billion tones and the Chuandong
Natural Gas Field in Chongqing is China's largest inland production base of
natural gas, with deposits of 270 billion m³, accounting for more than
one-fifth of China's total. Chongqing also contains China’s largest reserve of
strontium, and is home to Asia's largest aluminum plant, South West
Aluminium.
To facilitate
people who want to invest and set up business in Chongqing , 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 Chongqing now
Hi Tom,
ReplyDeleteI really like your Blog and its sounds great.
This is Robert Bailey from Hong Kong.
Hong Kong is a global financial hub and every business organization wants to establish its branch in this city. Though it might sound like an easy thing to do, it may consume a lot of time and money. Eventually, you might drop the idea of establishing a company in Hong Kong Incorporate HK company.
What if you could get everything ready and start trading with your new company in Hong Kong? Yes, establishing a new company in Hong Kong can be as simple as that if you check the ready made HK companies list and pick one to establish your business in this fast growing city.
Why a ready made company?
There are a number of reasons to choose a ready made company. The main reason to prefer this option is the time it takes to open a new company. It may certainly take weeks to complete official procedures. You will encounter a number of legal barriers that will eventually affect your decision of forming a new company in Hong Kong.
Thank you
Incorporation in Hong Kong
ReplyDeleteGold Tree Consultancy is a leading company for providing company incorporation services in Singapore, Malaysia or Hong Kong. We also provide company Incorporation services in Singapore, Malaysia or Hong Kong.
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