Brief_Introduction_to_Shanghai_China

Brief Introduction to Shanghai China, Set Up Business In Shanghai, One
Stop Company Registration Services In Shanghai China

Shanghai has a great pro as it is located in the middle of north-south coastal line,
with convenient transport system, vast land resources, and advantageous geographic
location. It is located in front of the Yangtze River, close to the East China Sea in the
east, face the Hangzhou bay in the south, connect with Jiangsu and Zhejiang province
in the west, and close to the mouth of Yangzi River in the north. Located in the heart
of the Delta Yangtze River, Shanghai has the world’s busiest container port
Shanghai has great investment environment, which is seen by many businessmen and
enterprises as: ever-increasing efficiency of government, construction of social honest,
solid social security system, place of increasing international cooperation, good legal
system, high information level, large group of talent in different fields, language
advantage, balanced industry mix, complete adequate and systematic service, etc.
Shanghai is the largest city by population in the People’s Republic of China. It is a
major financial center in China and one of the most significant trade and finance
centers in the world. It is one of China’s old industrial bases which thanks to reforms
which took place for over past 20 years have been injected with new vitality. The city
is also home to powerful Stock Exchange, the Shanghai Stock Exchange has been
ranked third among worldwide stock exchanges in terms of trading volume and sixth
in terms of the total capitalization of listed companies, and the trading volume of six
key commodities. The importance of this metropolis is consistently increasing.
Currently Shanghai is being ranked alongside with New York, Tokyo and London.
Furthermore, Shanghai is one of the most prosperous cities in the world. Its

cosmopolitan character, sophisticated and wealthy consumers, and highly educated
skilled labor force make it highly attractive to overseas investors.

Infrastructure
Shanghai has good city infrastructure and is a hub for ground, water and air
transportation.
Two International airports connecting to the world
In 2012, the combined number of flights of Pudong and Hongqiao Airport totaled
596,700, up 4%. The number of passengers totaled 78.7084 million, an increase of
5.6%. Passengers taking domestic flights totaled 54.7374 million and passengers
taking international flights totaled 23.9709 million, 4.7% and 7.6% higher than the
previous year respectively.

Railways and roads connecting to the whole country.
Shanghai has four railway stations and conveniently connects all major cities in China.
Up to the end of 2012, the total road length of the city exceeded 12,000 kilometers
with 10,000 bridges, accounting for 14% provincial roads.

Steady growth of port throughput and booming cruising business

In 2012, Shanghai’s port throughput totaled 736 million tons, 1.1% higher than the
previous year. Container throughput totaled 32.5294 million TEUs, up 2.5%.
Shanghai has been dedicated to cruising center of the Asia – Pacific Region. Shanghai
Wusong International Cruiser Quay and Shanghai International Traveler’s Quay have
received 180 cruisers in 2012, 67 more than the previous year. 128 cruisers took
Shanghai as host port and the number of passengers totaled 350,300, 71.4% higher
than the previous year.

Convenient public transportation
Up to the end of 2012, the city has 13 metros of 468.19 kilometers (including 29.11
km of Maglev Train). 6.277 – million people have been moved via public
transportation throughout the year, 2.2% more than the previous year. 2.276 – billion
people took metros, up 8.3%. The total length of dedicated lanes was 161.8
kilometers.

The city itself is divided into:

Central Business District

Lujiazui Finance & Trade Zone and the Bund financial trade zone make up the
Central Business District in Shanghai. Over 100 domestic and foreign financial

organizations have established in this district including the regional headquarters of
many multi-national corporations, such as Siemens and Johnson & Johnson.

Free Trade (Tax Bound) Zone
1. FTZ Bonded Area (28.78 sq.km.)

The bonded area of Shanghai FTZ consists of Waigaoqiao Free Trade Zone,
Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong
Airport Free Trade Zone. Waigaoqiao Free Trade Zone, founded in 1990, is the first
bonded area in China under the supervision of Shanghai Customs; Waigaoqiao Free
Trade Logistics Park, established in 2004, is also the first bonded logistics park in
China; Yangshan Free Trade Port Area, opened in 2005, is the first bonded port area
in China; Pudong Airport Free Trade Zone, set up in 2009, integrates bonded logistics
and cargo shipping. So far, 27 innovative policies that were tested in the FTZ bonded
area have been introduced nationwide or in selected regions. Soon, 28 more policies
covering investment, trade, finance, market opening and supervision will be
popularized across the country. Six innovative practices for the customs and
quarantine departments will also be copied nationwide.

2. Lujiazui Financial Area (34.26 sq.km.)

Lujiazui Financial Area consists of Lujiazui Finance and Trade Zone and Qiantan
Area. It is the core of Shanghai International Financial Center, Shanghai International
Shipping Center and Shanghai International Trade Center. Work is under way to
establish a financial system that follow international rules and practices, attract the
headquarters of multinationals with fine services, and carry out reforms to facilitate
foreign investment, cross-border trade, international financing and market supervision,
and create a good legal environment for businesses. Qiantan Area, which used to be
the site of Expo 2010, is a key area for a new round of development in Shanghai and
is positioned as a hub of corporate headquarters, maritime financial services, cultural
enterprises, sports and tourism facilities, and high-end services.

3. Jinqiao Export Processing Zone (20.48 sq.km.)

Established in 1990, Jinqiao Export Processing Zone has become a showcase of
advanced manufacturing, production services, emerging industries, and eco-friendly
environment. The zone is focusing on administrative and financial reforms, creating
good business environment to facilitate trade, and fostering strategic growth industries
for sustainable growth and international competition.

4. Zhangjiang High Tech Park (37.2 sq.km.)

Zhangjiang High Tech Park is a base for innovations as Shanghai implements the
national strategy for sustainable growth. It combines the development of Shanghai
FTZ and the Zhangjiang National Innovation Demonstration Area with a focus on
enhancing its innovative capabilities and providing a service platform for research,
financing, talent recruitment and resources sharing.

Pudong New Area

Pudong is designed to be built as a multi-functional and radiant modern city. From
1990 to present, the total investment of capital construction in Pudong New Area
amounted to USD 11 billion. The ten capital construction projects, represented by
Pudong International Airport, Pudong Cyberport, Mass Transit (No.2), Waigaoqiao
Electricity Generation Plant, East China Sea Natural Gas have been completed.

For more information about Shanghai, Please visit
http://www.shanghai.gov.cn/shanghai/node27118/index.html
http://en.investment.gov.cn:8080/home/index.jhtml

Shanghai Business Formation also can be understood as: Shanghai company setup,
Shanghai corporate formation, Shanghai business setup, Shanghai company
registration, Shanghai business establishment and Shanghai business registration
To facilitate people who want to invest and set up business in Shanghai, here is an
introduction of Types of business presence in China:
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 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 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, 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 (MainlandChina 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 China 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

Since 2006, Tommy China Business Consulting has been focusing on consulting
services for our clients to invest in Shanghai 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 Shanghai China, drafting privacy policies and structuring commercial
transactions

TCBC will manage all aspects of incorporation to get you a business license in
Shanghai China. We offer a range of company formation services including helping
you to set up:

-Wholly Foreign Owned Enterprises (WFOE )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-Hong Kong Holding Company.

Please visit: http://www.tommyconsulting.com/CorporateFormation.html
Email: [email protected] Skype: tomleeli
WhatSapp/Wechat/Cell Phone: +86 18926401128