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Shenzhen Company Set-up

Update Date:2019-10-11 14:22:20     Views:1386

Shenzhen WFOE Formation Service
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Shenzhen Company Set-up is also called Shenzhen corporate formation, Shenzhen company registration, Shenzhen business setup, Shenzhen company incorporation, Shenzhen company formation and Shenzhen business registration.

Shenzhen company setup is a good choice for global investors to extend business and make profit. Shenzhen is a huge market; the Chinese market is expanding many important business people’s choice. Before making the right decision, the local industry and commerce, taxation, law, management and operation of a wide range of understanding and research is particularly important. As a foreign individual or company looking to start your business or expand your activities in Shenzhen, there are several legal structures to select from:

Shenzhen company setup--WFOE
Normally the WFOE is Limited Co. A certain rate between the equity capital and the investments is regulated and is according to the sector. Two reports are necessary for the formation of a Ltd. To found a Ltd. You need a project report with the documentation of the project, the aim, etc. as well as a feasibility study. In most of the times both reports can be put together into one document. Next to these reports a good relationship to the government is an advantage. If you follow just the exact rules rather than the Chinese way while founding the company, the formation can take a long time.



Shenzhen company setup--representative office
The formation of a representative office is for many companies the first step to Shenzhen. In most of the cases these companies already have a customer base in Shenzhen and want to support them or get accustomed to the new environment. The representatives are founded out of marketing and promotion reasons in most of the times. A sponsor is necessary for the formation of a representative office in Shenzhen. This has to be a Chinese company. Mostly the company is founded in cooperation with existing customers or business partners. The problem concerning a representative office is that they are not allowed of signing business deals or contracts. They are not allowed to be involved in any business operations as well as selling products in Shenzhen. For such activities they need a Chinese company or trade office. The initiation and searching of new business contacts, consultation and perhaps the creation of market studies are their main tasks.

Shenzhen company setup-joint venture (JV)
In earlier year the Joint Venture was the most common business type for foreign enterprises in Shenzhen. In some sectors it was and still is necessary for the formation of such a company as a car producer or the aircraft industry. A crucial point for the formation of the JV is to gain market shares, customers and knowledge about the Chinese market through the JV-partner.



Shenzhen company setup--FIE
Setting up a Foreign Investment Enterprise (FIE) is a common method of creating an operation in Asian countries, especially in Shenzhen. In Shenzhen, any one of a number of legal entities can be considered FIEs including equity joint ventures (EJV), cooperative joint ventures (CJV), wholly-owned foreign enterprises (WFOE) and foreign-invested companies limited by shares (FCLS). Any one of a number of legal structures under which a company can participate in the foreign economy.


Shenzhen company setup--FIPE
FIPE stands for Foreign Invested Partnership Enterprise. In Mainland Shenzhen, there are 4 modes of business presences for foreign investors: WFOE(65%), Representative Office(20%-), FIPE(10%+), Joint Venture(5%). FIPE becomes more and more popular among young entrepreneurs with their new startups in Shenzhen as it requires no registered capital but the FIPE still could hire people, collect payments, issue invoices, apply for work & residence in Shenzhen freely. It's not a surprise that most people you meet in Shenzhen may not know anything about FIPE as it's relative new and government is not promoting on this.



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