There are many options as a foreign individual or corporation to
start operations in China
Setting up a representative office of your foreign company is usually
the easiest way to get your foot on the ground in Shanghai. You
must have a company abroad so this is not an option for individual
investors. The overseas company must be two years or older. The
main advantage is that there is no registered capital requirement.
There are however many restrictions on RO: they cannot earn income,
sign contracts, hire staff directly (all hires must go through a
government-approved agency). There is a monthly tax charged as a
percentage of all expenses of the representative Office.
A consulting company is authorized to provide various types of consulting
services in China, including investment consulting, business advisory, human resource management,
etc.. It has usually the lowest capital requirements amoung wholly foreign owned enterprises.
Information Technology is a huge market in China and there are certainly opportunities for foreign companies that are expert in their specific niche..
A food and beverage wholly foreign owned enterprise is required
to run a restaurant or bar in China. The registration is rather
complex due to the high number of government agencies involved,
and the registered capital is higher than consulting or IT companies.
Trading or import-export wholly owned foreign enterprises are used
by companies engaged in importing or exporting from China.
Manufacturing companies are now leaving the east coast to move inland to take advantage of the lower costs. Local governments in China welcome
manufacturing companies as they create jobs, and are ready to invest in infrastructure or provide tax breaks to attract foreign investors.
Hong Kong Company
Technically speaking, Hong Kong companies are considered foreign companies
in China and therefore cannot run operations, rent offices or hire
staff in mainland China. Setting up a Hong Kong company however is a recommended first move when expanding to China
due to the lower costs (including taxes) and more western business environment. Hong Kong companies can also be used
as holding companies for reinvesting into mainland China.
4/F, Tower A
6 Chaowai Street
1666 Sichuan Rd (N),
Global New Times Plaza
1666 Sichuan Rd (N),
Unit 24G, Block B
Honglong Century Plaza
4002 Shennan (E) Rd