Chongqing is a major political, economic and
cultural center of Central China. It is a direct-controlled municipality that
encompasses an area of 82,402.95 km2 and surrounded by Guizhou Province in
the south, Hubei Province in the east, Sichuan Province in the west and Shaanxi
Province in the north. As a result of China's "Go West" Policy,
Chongqing has become a significant trading and manufacturing hub as well as a
major gateway to West China. The controversial Three Gorges Damalong the
Yangtze River, completed in 2006, is intended to improve efficiency for
transportation between Chongqing and coastal cities in the Yangtze River Delta.
General
- Population: 33,430,000
Economy
- Primary Industry
(percentage of GDP): RMB 94,000 million (8.2 percent)
- Secondary Industry
(percentage of GDP): RMB 597,520 million (52.4 percent)
- Tertiary Industry
(percentage of GDP): RMB 449,440 million (39.4 percent)
- Total: RMB
1,140,960 million
- Total retail sales
of consumer goods: RMB 403,370,460 million
- Total value of
imports and exports: US$ 91,774,010 million
- Fixed
Investment: RMB 938,000,120 million
Source: China 2013 Statistical Yearbook (uses
2012 statistics)
Business
- Minimum monthly
wage: RMB 1,050
- Minimum hourly
wage: RMB 10.5
- Avg.
annual wage of staff and workers: RMB 45,392
Sources: Local Labor Bureau and Social
Insurance Bureau (2013)
Chongqing’s industrial competitiveness has been
ranked sixth in China. It is estimated that information industry will become
one of Chongqing’s pillar industries in the 11th Five-Year Plan. Chongqing’s
GDP in 2008 reached RMB509.67 billion. The GDP growth in 2008 ranked the third
in West China’s eleven provinces and ranked the fifth nationwide. The growth
was mostly contributed by the industrial sector. The “One-hour Economic Circle”
of Chongqing accounted for 78 percent of its total GDP. Chongqing’s used FDI
saw a remarkable 152 percent increase in 2008.
Chongqing is China’s fourth largest center for
motor vehicle production. The municipality is expected to turn out 2.6 million
vehicles a year by 2020, an output that could account for as much as 15 percent
of the national total. In 2008, it produced 780,000 vehicles, marking an annual
increase of 25 percent. The industry is aiming to expand overseas and to
outsource production of cars or components.
Chongqing is also one of the biggest iron and
steel production centers, and an important aluminum production base. The
manufacturing sector is also in good health. There are more than 10,000
factories with fixed assets of over RMB73 billion. In 2005, a number of
prominent domestic appliance manufacturers, including Haier, Midea and Gless,
relocated their factories from coastal provinces to Chongqing. It reportedly
costs RMB100 less to produce an air-conditioning unit in Chongqing than it does
in those provinces.
Chongqing is very open to FDI, FIEs and foreign
trade. Global Fortune 500 companies with operations in the municipality include
Danone, Carrefour, HSBC, Ericsson, Honda and Ford. Trade has also experienced
significant growth. Despite the financial crisis, exports in 2008 still saw a
26.9 percent increase, though it was lower than the growth in 2007. Major
export items include motorcycles, automobiles, auto parts, chemicals,
pharmaceuticals, agricultural products and light industrial goods. Imports
increased by 29.6 percent, leaving the municipality with a trade surplus of
US$1.92 billion. The private sector accounted for 40 percent of the local
economy, a proportion that is expected to reach 60 percent by 2014.
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
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