English Speaking Lawyer From Wuhan Law Firm Offer Foreign-Related Legal Services in Wuhan China

English Speaking Lawyer From Wuhan Law Firm Offer Foreign-Related Legal Services in Wuhan China

Foreign companies come in contact with the Chinese legal system the moment they decide to enter the Chinese market. Legal aspects must be considered in relation to enterprise formation, investment approval, real estate, human resources, environmental protection, Intellectual Property,and taxation.

International companies sometimes must resolve disputes with local companies or contractors. The Chinese legal system's structure might be perceived as an obstacle, Rapid changes in China's legal system require foreign companies operating in China to seek legal services of the highest quality.

Due Diligence

We have ever handled so many fraudulent trading or investment cases in which the foreign partners have all been defrauded or scammed by their Chinese partners. The reason is all the same that the foreign partners failed to conduct background check on reliabilities of their Chinese partners, which could have been easily done before the transactions. We call this background check “Due Diligence”.

If you want to do business in China or cooperate with a partner, due diligence is an essential step before you go further, and China Law Service (Wuhan) Limited can offer professional due diligence report to you in accordance with your typical needs. We can deliver highly cost effective solution to the problems of getting behind glossy presentation and cultural confusion to see the real quality and position of the other party of your business or transaction. The staffs with China Law Service (Wuhan) Limited have more than 20 years’ experience in China company research, investigation and commercial analysis sector. They bring experience and knowledge to the presentation of China company information.

China Law Service (Wuhan) Limited can research and report on any company in China to the depth required. Information from which selection can be made includes: corporate details, including export license details, business operations, history, strategic or political factors, international connections, financial status, reputation, rating and overall assessment.

Our research facilities in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Wuhan and other major cities in China are well-established businesses. They combine an extensive and painstakingly constructed contact network across China with the China company registration authorities, with good experience in “live” company research through identifying and interviewing knowledgeable individuals concerning any company. This latter capacity is essential in an environment where even data formally collected by the local authorities may not always be entirely trustworthy.

 Contract Review

In many business situations there comes a time when a relationship or transaction needs to be set down in writing. Contracts are an integral part of business relationships throughout the world. This is no less true in China. Chinese contracts are drafted everyday for many different purposes. A main hindrance to the foreigner doing business in China is the inability to read a contract he is expected to sign. Even if a translation of a Chinese contract is produced, the contract is sill written in legal terms. And complex legal minutia can fill many of the pages of a China contract. For this reason, it is often advisable to retain legal counsel that is fluent in Chinese, English, and legal terminology in both languages.

At China Law Service (Wuhan) Limited, we can produce a Chinese to English translation of a proposed contract. This translation will be carried out or modified by a China lawyer who is fluent at English. By doing this, the rights and interests of our clients will be best guarded. Possible issues that they would be on the lookout for in a contract between a Chinese and a foreigner would be conflicts of law issues between China and another jurisdiction, unequal rights between the two parties, and possible legal ambiguities that could lead to unnecessary litigation in the future. These are just a few of the issues to look out for regarding Chinese contracts.

People in or out of China may sign property leases, vehicle and equipment leases, advertising agreements, web site development and maintenance agreements, banking documents and numerous other contracts in the usual course of business. Retaining a China lawyer can make these contracts simple and easily understandable. The China lawyer may help you with the clauses like negotiating the terms, identifying the parties, completing all blanks, allocating risk, indemnification provisions, warranties, representations, events of default, rights and responsibilities, remedies provisions and so on.

It is always wise to have a competent legal professional review any document before signature. This is true especially in China where a Chinese contract is written in Chinese script. Failure to retain competent legal advice before signing a Chinese contract could lead to unforeseen legal consequences befalling the foreign businessman in China. Please contact China Law Service (Wuhan) Limited for more information about Chinese contract review

 Merger & Acquisition

 On a global basis, mergers and acquisitions (M&A) were the prevalent method through which multinationals conducted foreign investment, while “green field” investments were virtually the only option available to foreign investors in China in the past. However, the environment for M&A in China has fundamentally changed in recent years, affected in party by the global economic trend and with the intention of stimulating M&A related activity, Chinese Government have introduced and consolidated various laws and regulations since 2002.

The robust growth of China’s economy and its further liberalization of the domestic market after its accession to the World Trade Organization have worked together to fuel the accelerated pace of M&A activity in recent years. It is foreseeable that M&A activity, which offers foreign investors a more immediate method of entering the China market as opposed to “green field” investment, will continue to boom in China in the years to come.

Suppose a US-based company “ABC Co.” has preliminarily identified an ideal target company in China, which it intends to acquire. Before proceeding to conduct an in-depth financial assessment and structure the prospective acquisition, it is advisable to take the following into consideration: 1. M&A transactions in China require examination and approval by Chinese government agencies. 2. The sectoral restrictions applicable to “green field” investment in China are also applicable to foreign-related M&A transactions. 3. Ascertaining the nature and desirable businesses of the target is essential to structuring the M&A transaction. 

Due to the general lack of transparency or proper regulations in China, many Chinese companies may have certain irregularities incurred somewhere or sometime in the course of its business. It is imperative that a foreign investor resolve any irregularities before entering into the transaction. Therefore, conducting a legal due diligence exercise is often just as important as conducting a financial due diligence to determine the viability of the target company in a merger and acquisition deal. 

 Business Establishment

We have extensive experience with the entire spectrum of business entities in China, from simple Representative Offices to more complex Foreign Invested Enterprises such as Wholly Owned Foreign Enterprises (WOFEs) and Joint Ventures (JVs). We have served hundreds of clients from more than 30 countries in virtually every industry sector. Our consultants have developed an extensive network of local connections to expedite business registration projects and to negotiate for favorable incentives for large Foreign Direct Investment (FDI) projects.

We also provides a wide range of business support services tailored to the needs of Representative Offices and newly established foreign invested companies in China, including accounting services and regulatory compliance assistance.

Registering a foreign company in China is much easier than before as it doesn’t involve approval from multiple local authorities and bureaus if the perspective enterprise isn’t subject to the special administrative measures for permits stipulated by the government. However, the establishment of a foreign company is still a complicated process. Our extensive network of local government bureaus contacts, knowledge of local regulations and experience with hundreds of projects already executed can help you accelerate your entry and growth in China.

Foreign investment companies that engage in business operations in China are required to pay taxes according to China tax laws. The most commonly used forms of business for foreign investment companies are the Representative Office (Rep. Office) and the Limited Liability Company (LLC). The most important tax categories for these forms of businesses are corporate income tax and business tax, which is being transitioned to a new value-added tax (VAT) system, as well as the value-added tax (VAT) for manufacturing, wholesale, retail, and trade.

We assist our clients with their China projects regardless of which stage of development they are in, like researching the business environment, entering the market or already growing their business within China. We are committed to guiding our clients through the challenges of achieving their goals by not only keeping them abreast of current trends but also anticipating how those trends may impact the market they are in. We customize our approach according to our clients’ specific needs.

Our main priority is to provide high-quality services to maximize our clients’ potential for long-term success within China. Our mission is to provide the best solutions for our clients’ China market entry & growth needs and to become the partner of choice for companies and organizations doing business in China.

Please visit: http://www.tommyconsulting.com/legal_introduction.html
Email: tomlee@tommyconsulting.com, Skype: tomleeli
WhatSapp/Wechat/Cell Phone: +86 18926401128

Brief Introduction to Wuhan Business Environment,One Stop Services For Investing in Wuhan China,Register Company,Business Formation, Investment Legal Advice, Accounting Services

One Stop Services For Investing in Wuhan

Wuhan, the capital of Hubei province,is the most populous city in central China. In 2015 it has a population of 10.60 million residing in three distinct districts (Hankou, Hanyang, and Wuchang), commonly known as “The Three Towns of Wuhan”. The city is recognized as the political, economic, financial, cultural, educational, and transportation centre of central China.

While Wuhan has for decades been a traditional base for manufacturing, it has also become one of the areas promoting modern industrial change. Wuhan consists of three national development zones, four scientific and technologic development parks, over 350 research institutes, 1,656 hi-tech enterprises, numerous enterprise incubators and investments from 230 Fortune Global 500 firms – enabling the city to offer globally competitive strengths in most business fields. By combining traditional industries such as automobile manufacturing, the starting point of China's economic liberalization, with new hi-tech industries in places like the Optics Valley, Wuhan is positioning itself as one of the most progressive business cities in all of Asia.


Wuhan possesses strong economic and regional advantages. It connects the east with the west, channels the north to the south, and links rivers with seas by means of its developed infrastructure in water, land and air traffic.

Important metropolises in China, including Beijing, Shanghai, Guangzhou, Chengdu, and Xi’an, are all within 1,200 km of Wuhan, home to the largest inland port in the country and the gateway to the Three Gorges Project – the development of a hydroelectric dam in the Yangtze River. Benefitting from its strategic position in central China, Wuhan naturally became a hub for the efficient distribution of products for many industries.

Major industries in Wuhan include modern manufacturing (automotive, steel and iron manufacturing) and high-tech industries (including opto-electronic technology, pharmaceutical, biology engineering, new material industry, and environmental protection). Wuhan’s Dongfeng Motor Corporation is the third largest automaker in China. It has joint ventures with firms such as Honda, Nissan and French carmaker PSA Peugeot-Citroen. In 2014, Dongfeng sold more than 3.53 million vehicles. In addition to a strong industrial base, Wuhan is also ranked third in China for its comprehensive scientific and educational strength.

Overall, Wuhan is enjoying substantial growth:
Wuhan’s GDP reached RMB1,090.56 billion in 2015, with a YoY increase of 8.8%. GDP per capita reached approximately RMB 104,132 (USD $16,528).
Wuhan’s GDP in 2015 ranked 1^st in major cities in Central China and 8^th among 100 major cities in China. It is a city with great potential.

Special industrial zones

1.      Wuhan Optics Valley Area
With National Development Zone: Wuhan East Lake High-tech Development Zone
Key sectors: Electronic information, biotechnology, environment protection, and equipment manufacturing

2.      The Automotive Industry Cluster
 With National Development Zone: Wuhan Economic and Technological Development Zone
 Key sectors: Automobile, innovative industry, and aviation

3.      Wuhan Airport-neighboring Industry Cluster
With National Development Zone: Wuhan Airport-neighboring Economic and Development Zone, formerly known as Wuhan Wujiashan Economic and Development Zone.
Key sectors: Food processing industry, high tech mechanical and electric manufacturing, new energy vehicle, and service industry with high added value.

4.      Wuhan New Port-neighboring Industry Cluster
Key sectors: Yangtze river transportation, bonded warehousing, processing and logistics service, petrochemical, and steel processing

To facilitate people who want to invest and set up company in Wuhan, 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 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. No. minimum registered capital is required for WFOEs with scope of business of consulting, Trading, retailing, information technology etc. in China. There are minimum registered capital still required for some industries for instance: Banking, Forwarding etc Since China still maintains foreign currency control policy, it's still advisable to choose registered capital within RMB 100,000 ~ RMB 500,000 as the minimum registered capital. Companies can now determine how much capital will be required to maintain their operations and must simply ensure that they meet those targets within a period of 10 years.

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, Wuhan, 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 Wuhan 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 Wuhan 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 Wuhan China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Wuhan 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: tomlee@tommyconsulting.com, Skype: tomleeli

WhatSapp/Wechat/Cell Phone: +86 18926401128

Guideline To Incorporate Business In Wuhan,Offer Complete Range Of Company SetUp Corporate Formation Business Registration Services In Wuhan China

Guideline To Incorporate Business In Wuhan,Offer Complete Range Of Company SetUp Corporate Formation Business Registration Services In Wuhan China

 
Wuhan, the capital of Hubei province,is the most populous city in central China. In 2015 it has a population of 10.60 million residing in three distinct districts (Hankou, Hanyang, and Wuchang), commonly known as “The Three Towns of Wuhan”. The city is recognized as the political, economic, financial, cultural, educational, and transportation centre of central China.

While Wuhan has for decades been a traditional base for manufacturing, it has also become one of the areas promoting modern industrial change. Wuhan consists of three national development zones, four scientific and technologic development parks, over 350 research institutes, 1,656 hi-tech enterprises, numerous enterprise incubators and investments from 230 Fortune Global 500 firms – enabling the city to offer globally competitive strengths in most business fields. By combining traditional industries such as automobile manufacturing, the starting point of China's economic liberalization, with new hi-tech industries in places like the Optics Valley, Wuhan is positioning itself as one of the most progressive business cities in all of Asia.

For more information about Wuhan, please visit https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/international-business/csg-china-research-report-on-investment-environment-of-wuhan-en-2013.pdf

http://files.chinagoabroad.com/Public/uploads/content/files/201709/Factsheet_Hubei%20and%20Wuhan_30082017_0.pdf

http://english.wh.gov.cn/

To facilitate people who want to invest and set up company in Wuhan, 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 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. No. minimum registered capital is required for WFOEs with scope of business of consulting, Trading, retailing, information technology etc. in China. There are minimum registered capital still required for some industries for instance: Banking, Forwarding etc Since China still maintains foreign currency control policy, it's still advisable to choose registered capital within RMB 100,000 ~ RMB 500,000 as the minimum registered capital. Companies can now determine how much capital will be required to maintain their operations and must simply ensure that they meet those targets within a period of 10 years.

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, Wuhan, 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 Wuhan 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 Wuhan 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 Wuhan China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Wuhan 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: tomlee@tommyconsulting.com, Skype: tomleeli

WhatSapp/Wechat/Cell Phone: +86 18926401128

China's Motor City Wuhan, start your engines now!

(Xinhua)  Updated: 2016-05-18 08:02

A Chinese employee working on the Kadjar car assembly line of France's Renault and China's Dongfeng Group factory in Wuhan, Hubei province. Renault was the last major producer that has opened a car factory in China.AFP

Jiangxia district in Wuhan, capital of Hubei province, takes pride in its young car culture: streets here are named after Chevrolet, Buick and Cadillac. People introduce their hometown as "China's Motor City", and many young people expect to work in the automotive industry when they leave school or college.

The district is home to Shanghai General Motors' Wuhan factory, which opened last year and assembles 1,300 Buick Excelles a day, at full tilt, supporting an ecosystem of dozens of auto parts factories.

Just across the Yangtze River is a new Dongfeng Renault plant that opened in February. The joint venture plans an eventual annual capacity of 300,000 cars.
The riverfront is at the heart of the city's ambitions. Wuhan attracts foreign investment partly through ease of water transit and proximity to the inland market. The city was founded on steel and the car industry is seen as away of weaning the city off its over-reliance on a declining industry.

Once China's biggest steelmaker and the pride of the city, Wuhan Iron and Steel (Group) Corp is now under pressure to cut excess capacity like many others. Board Chairman Ma Guoqiang has said that as many as 50,000 workers "will need to find another job".

Thankfully for those about to be laid off, Wuhan is home to nine car factories, including joint ventures with Renault, PSA and Honda, plus dozens of auto parts-makers.

The auto industry now supplies 20 percent of the city's industrial output and employs more than 1 million residents.

A personnel manager with Dongfeng Peugeot Citroen Automobile said that the number of assembly workers is actually falling as robots take their jobs, but more jobs are opening up among parts-makers and at vehicle storage facilities.

In the eyes of local people, the car industry is where the action is. "Wuhan is becoming a city of cars, attracting billion-dollar projects, and many smaller plants. I came back because I saw the potential here," said Kang Mansheng, 35, who works at a parts-maker in Jiangxia. Kang spent eight years as a driver and mechanic in eastern China but came back in 2015 with his wife and many colleagues as local salaries improved.

"Many people have had similar experiences. They have worked in car businesses in other cities and returned to Wuhan with experience and skills. They have faith in the future of the city," Kang said.

Apart from picking up the employment slack left by steel mills, the auto industry is a major customer of steel producers, and the city sees it as a stimuli to upgrading the steel industry.

WISCO now supplies steel panels to local car plants, 70 percent of DPCA's panels in fact, along with other marks such as Volkswagen and Land Rover.

Li Minghuan, a director of the DPCA technical center, said WISCO began supplying low-end panels in 2000 and is now a strategic supplier of DPCA. The two companies even have a joint R&D lab.

A spokesperson for WISCO's sales department said it sells steel to dozens of automakers in Wuhan and the surrounding area, greatly aided by low-cost water transportation on the Yangtze River.

Wuhan is not the only Chinese city switching to auto production. Upstream on the Yangtze, Chongqing has similar ambitions. Home to Changan Automobile and a new Beijing Hyundai plant, the southwestern city is working toward an annual capacity of 4 million cars by 2017. Other cities producing more than 1 million cars annually include Shanghai, Beijing, Changchun and Guangzhou, but overcapacity concerns are rising as the car market becomes saturated.

China sold more than 24.5 million cars in 2015, up 4.7 percent year-on-year, but that rate was down by 2.2 percentage points on 2014.

Yet there are still positive signs. Dong Yang, executive vice-chairman of the China Association of Automobile Manufacturers, cites low car ownership-only around 30 percent of Chinese families have a car-and anticipated future economic growth as mitigating factors against oversupply.

Preferential Tax Policies for Enterprises with Foreign Investment in Hubei province China

The preferential tax policies for enterprises with foreign investment (hereinafter referred to as EFI) include the following main items: preferential enterprise income tax rate, enterprise income tax reduction or exemption and import tariff and value added tax(VAT) exemption of imported equipment.

1. Preferential Enterprise Income Tax Policies
1.1 Preferential enterprise income tax rate
The income tax rate is 33 percent on usual for the EFIs in Hubei province. The preferential income tax was practiced in the following regions and industries.
A 15 percent enterprise income tax rate shall apply to the EFIs engaged in production and business operation or of a production nature:

• Located in the state-level Economic and Technological Development Zones and New and High Technology Industry Development Zones;
• Centering on infrastructure fields such as power, energy, transportation and communication, harbor and port, dock and wharf and other projects.

The 24 percent preferential income tax rate is applicable to: the production-natured EFIs in Wuhan, Huangshi and Yichang municipality.
The enterprises engaged in production and business operation or of a production nature include:
a. Technology-intensive or knowledge-intensive projects;
b. Energy industry(petroleum and natural gas exploitation not included);
c. Metallurgical, chemical and building materials industries;
d. Textile, packaging and other light industries;
e. Medical apparatus and instruments and pharmaceutical industries;
f. Agriculture, forestry, husbandry, fishery and water conservancy industries;
g. Construction industry;
h. Transportation and communication industry;
i. Service industry as science and technology development, geological prospecting, industrial information consulting and precision instruments maintenance and repair industries;
j. Other industries agreed by Ministry of Finance or State Administration of Taxation

1.2 Enterprise income tax reduction or exemption
Any EFI engaged in production or of a production nature intended to conduct business in China for at least 10 years shall, from its first profit making year, be entitled to two-year's income tax exemption adjoining three-year's 50 percent reduction.

Any EFI engaged in advanced technology intended to conduct business in China for at least 10 years shall, from its first profit making year, be entitled to two-year's income tax exemption adjoining six-year's 50 percent reduction, with the reduced tax rate not less than 10 percent.

Any Chinese foreign equity joint ventures undertaking port or dock construction with an operation period exceeding 15 years shall, from the first year of its making profits, be exempted from enterprise income tax for five consecutive years adjoining another six to ten years of 50 percent reduction.

1.3 Further enterprise income tax reduction or exemption
Any export-oriented EFI shall, after its expiration of exemption or reduction, be entitled to a further 50percent reduction on Enterprise Income Tax, provided that at least 70percent of its annual products have been exported. The reduced tax rate shall not below 10 percent.

Any EFI that belongs to the encouragement category and situated in Hubei province, shall be entitled a 50 percent reduction on Enterprise Income Tax, provided that at least 70percent of its annual products have been exported. The reduced tax rate shall not below 10 percent.

For those EFIs engaging in agriculture, forestry and husbandry shall, after its expiration of exemption or reduction, be entitled to a further ten-year's 15-30 percent reduction on Enterprise Income Tax, if approved by the State Administration of Taxation.

1.4 Further local income tax reduction or exemption
In Hubei province, after the expiration of the preferential local income tax: the export-oriented and advanced technology-oriented EFIs shall be entitled to nine years local income tax exemption；
the foreign enterprises invested in the infrastructure and basic industries as power and energy, transportation and communication, raw materials, development-oriented agriculture and social causes and the Sino-foreign joint ventures, Sino-foreign cooperatives and wholly foreign owned enterprises through utilizing and reforming the existing corporations shall be entitled to six-year's local income tax exemption.
Other foreign invested enterprises shall be exempted from local income tax for three years.
They can apply for further exemption once the exemption of local income taxes has expired.

Brief Introduction to Industry in Hubei province,One Stop Services For Investing in Hubei China,Company Set Up,Business Formation, Investment Legal Advice, Accounting Services

Hubei, the birthplace of modern industry in China, is one of the important old industrial bases and one of the three largest steel bases in our country. It is also the largest production base of medium, heavy, sheet plates and special steel, the second largest production base of automobiles and the largest production base of medium trucks, the largest production base of heavy machine tools and packaging machinery, the biggest hydraulic power base, and the largest production base of Join-alkali, agricultural chemicals, phosphorus, salt chemical industry and striate gypsum. It is also a national photoelectron information industrial base in China and one of modernized traditional Chinese medicine bases and important textile bases. It has established a distinctive industrial system, forming a pattern with automobile, steel and photoelectron information as advantaged industry.

(I) Automobile Industry
With the construction and development over 50 years, the mechanism and automobile industry in Hubei province has established the industrial foundation with “one leading industry and two belts”. “One leading industry” refers to take the automobile industry as the leading role, building a wide range of 13 industries with rich strength such as machine tools, electrical appliances, instruments and meters, general petrochemical machinery, heavy mining machinery, food packaging machinery, general basic parts, engineering machinery, agricultural machinery, internal combustion engine, cultural office equipment, civil machinery and so on. “Two belts” refers to the two centralized belts, including an automobile industry belts based on the Dongfeng Motor Company in Shiyan, Xiangfan and Wuhan and a large technical equipment belt based on Yichang, Jinzhou, Wuhan and Huangshi, which brought about an industry pattern supported by a large number of big corporations and companies such as Dongfeng Motor Corporation, Dongfeng Peugeot Automobile Company, Tri-ring Group Corporation, Wuhan Kaidi Electric Power Co., Ltd, Wuhan Boiler Co., Ltd, China Chang Jiang Energy Corp.(Group), China Shipbuilding Industry Corporation Wuchang Shipyard and so on. Dongfeng Motor Corporation has realized multinational reorganization with Nissan Motor Co.，Ltd, enhanced operation with PSA Peugeot Citroen and expanded operation with Honda, which marked that Dongfeng Motor Corporation has stepped into the queue of international big companies; after reorganization with the automobile corporations in Hubei province, Tri-ring Group Corporation has further enhanced its strength. As one of the three big production bases for manufacturing automobile components and parts, Hubei Province has achieved a productivity of 800,000 entire vehicles. On the whole, it has formed a product structure which pays equal attention to “limousine, heavy, medium, light and special” and the wide range of vehicle type. Due to the rapid development of entire vehicles, the components and parts industry in Hubei has strengthened day by day. At present, there are more than 700 components and parts enterprises in Hubei (of which there are more than 310 enterprises above the scale), and the annual capacity to provide the auxiliary items exceeds 600,000 vehicles. The industrial output accomplished by the top 10 big companies in this industry take up more than 60% of the total industrial output accomplished by the mechanism and automobile industry in Hubei.

(II) Information Industry
The information industry in Hubei Province maintained comprehensive, rapid and effective development. The scale of manufacturing industry grew in duplication. The government affairs, enterprises and social informatization have been push forward in an all round way. The informatization level has improved remarkably, and the wireless infrastructure construction is highly effective. Supervision competence is strengthened time and again. The function and status of information industry in the national economy and social development has been reinforced at large, which lays a solid foundation for the sustainable development of “10th Five-year Plan”. As a result of the construction and development, the information industry in Hubei Province has formed a development pattern featuring optical communication, mobile communication, laser, display, chemosynthetic foil electronic material and software industry. The scale of optical fibers and cables industry is in the first place at home and the third place in the world, and the research and development as well as the production scale of the optical communication come out at the top in China; the output of micro-midi broadcasting station and mobile base station antenna system is on top at home, the same with the production scale of laser; production of mobile phone, display and air condition respectively has formed a scale of 10,000,000 sets; the production scale of chemosynthetic foil electronic material is also on top at home with an output of 50,000,000 square meters; by the same token, the software industry provided with domestic considerable foundation and strength is in full flourish. As to the industry structure of the information industry in Hubei Province, it has changed from the single manufacturing industry in the past to the modern information industry integrated by manufacturing industry, software industry and information service industry. The product structure with dominant investment class products in the past has entered into an amenable environment in which the products of investment class, consumption class and foundation class are developed side by side. By means of developing the photoelectron information and organizing and optimizing some essential elements including industry, qualified personnel and resources, Optical Valley of China (Wuhan) has rapidly developed into the biggest photoelectron information industry base in China.

(III) Light Industry
Hubei Province, one of the largest provinces in China in respect of light industry, has established a self-contained light industry system with a wide range of products, including 22 categories and more than 40 industries such as subsidiary foodstuff processing, foodstuff manufacturing, drink, crude salt, leather, cabinetmaking, paper making and paper products, stationery and sporting goods, chemical industry concerned with products for daily use, plastics, household electrical appliances, illuminating electrical appliances, articles of artistic industry and so on. The major light industries in Hubei Province, including foodstuff and drink, household electrical appliances, paper making, plastics, crude salt and so on, which is playing an important role at home and provided with relatively strong comparative advantage. The subsidiary foodstuff processing industry ranks the 10th place in China the foodstuff manufacturing industry ranks 12th, drink manufacturing ranks 8th, paper making and paper products industry ranks 10th, plastics industry ranks 11th, and household electrical appliances manufacturing industry ranks 10th. Moreover, there are many national renowned native enterprises concerning light industry in Hubei, such as Jingshan Light Machinery Group Co., Ltd., Angel Yeast Co., Ltd., Kaile Science and Technology Co., Ltd., Hubei Yuli Abrasive Belt Co., Ltd., Hubei Baiyunbian Wine Co. Ltd., Zhijiang Wine Co., Ltd, Jing Brand Co. Ltd. and so on. Meanwhile, Hubei Province is provided with a large number of Chinese well-known brand products, including “Kinglong” Beer, “SLEK” cosmetics, “Dongbei” refrigerator compressor, “President” juice, “Jinhuang” jewelry, “Lianle” mattress, “Daqiao” chicken essence, “Jinchen” toothbrush, “Jinlan” jewelry and so on. With more open up to the outside world and improvement on the investment environment, a large number of national and international renowned enterprises concerning light industry have settled in Hubei, including Coca-Cola, Pepsi, Philips, Budweiser, Red Bull Drink, Hair, Little Swan, China Resources Power, Tsingtao Brewery, Wahaha, Huiyuan, TCL, Nongfu-shanquan and so on, which have further strengthened the Hubei light industry.

(IV) Medical Industry
The medical industry, the new point of growth for the economic development in Hubei Province, has formed a medical industry system with a wide range of products including bio-medicine, chemosynthetic pharmaceutical products and preparations, Chinese patent medicines, traditional Chinese medicines prepared in ready-to-use forms, healthful materials, medical appliances, medicament-making devices, medicine packaging and so on, and it is provided with strong strength on manufacture, study and research and collaborative development on traditional medicine, modern biotechnology and new medicine. At present, it is growing into the important pillar industry concerning the new pattern industrialization in Hubei. In recent years, the medicine manufacturing enterprises in Hubei developed rapidly with large quantities of products and process engineering being ahead in China, and the output and export quantum of vitamin B complex separately takes up 60% and 50% of the country. Among which: the manufacturing technique for VB1 has achieved the national advanced level; the process engineering for new fungus VB2 has reached the international advanced level, its output takes up 98% of the country and productivity ranks No.1 in China and No.3 in the world; the amino acid series are provided with 16 classes of products, among which 3 products can be substitutes for imported goods and has supplied a gap for the country; productivity of Brufen ranks No.1 in china and No.4 in the world. At present, the number of fruits of the underway project and preparative industrialization on biotechnology and new medicine have exceeded 200; among which there are 65 registered number of approval for bio-medical products, including 1 kind of the national class I new medicines, 5 kinds of the national class II new medicines, and 20 kinds of national class III and IV new medicines; researches on some fields such as functional gene, artificial growth factor, biological for human and animals, thrombolysis enzyme TPA and bio-engineering bacterin has achieved the national and international advanced level. In addition, a medicine industry base involving four classes, namely, unadulterated traditional Chinese medicinal materials planting, medicine manufacturing, medicine manufacturing for special purpose and medical research has been formed to a large extent.

(V) Petrochemical Industry
Petrochemical Industry, one of the pillar industries among the industries in Hubei Province, after the development over years, has formed a manufacturing and construction system with large and middle scale enterprises as its backbone, petroleum extraction, petroleum refining, chemical industry for agricultural use, basic chemical raw materials and rubber processing as the leading role, and chemical industry research, education, design, geological exploration and installation and construction as the supporting role. At present, there are more than 600 oil enterprises, petrochemical enterprises and chemical engineering enterprises above the scale, including 25 large-scaled enterprises and 50 enterprises in middle-scale. Petrochemical industry has formed numbers of characteristic enterprises after reconstructing the traditional industries by high and new-technology industries: Sinopec Wuhan Co., Ltd and Sinopec Jinmen Co., Ltd are the leading enterprises concerning crude processing in the central area in China; Sinopec Jianghan petroleum administration is the only enterprise for petroleum extraction in the central area in China; Hubei Shuanghuan Chemical Group Co., Ltd. is the largest enterprise for producing Join-alkali in Asia; Hubei Yichang Chemical Group Co., Ltd. is an important comprehensive enterprise concerning phosphorus industry, salt industry and fertilizer manufacturing; Sinopec Hubei Fertilizer Co., Ltd. is among the enterprises taking the lead in utilizing the introduced technique to establish large scale enterprises concerning fertilizer manufacturing at home; Shalongda Co. Ltd. is the largest enterprise for manufacturing agricultural chemicals in China; Hubei Chuyuan Fine Chemical Industry Group Co. Ltd. is the largest enterprise for producing dyestuff and dyestuff intermediates in China; Wuhan Gehua Group Co. Ltd. is one of the earliest large scale enterprises for manufacturing chlorine alkali and polyvinyl chloride in China; Yichang Xingfa Group Co. Ltd. is the largest enterprise for producing yellow phosphorus and phosphorus products in China; Hubei Yangfeng Group Co. Ltd. is one of the largest enterprises for manufacturing phosphate and compound fertilizer; Wuhan Youji Industrial Co.，Ltd. is the biggest enterprise for producing food additive such as benzyl chloride and sodium benzoate in Asia. Some other distinctive enterprises with large industrial scale in our province are also included.

(VI) Textile Industry
The textile industry, a traditional pillar industry in Hubei Province, is also an important base for Chinese textile industry. At present, it has formed a relatively complete industry system including cotton textile, wool textile, gunny textile, dyeing and finishing, knitting, color weave, silk, chemical fiber, clothes, shoes and caps and textile machinery. The textile industry in Hubei has achieved a spinning productivity of 6,330,000 spindles, the weaving capacity for manufacturing fabric machine achieved 66,300 sets and the capacity for making clothes achieved 1.5 billion pieces (suits). The gross industrial output value accomplished by the enterprises above the scale has achieved RMB 43.252 billion, and the output of main products including yarn, cloth and clothes has respectively achieved 817,800 tons, 1.869 billion meters and 0.171 billion pieces. By the end of 2011, the textile industry in Hubei will realize a productivity of 500,000 tons with chemical fiber and 10,000,000 spindles with cotton textile including 7,500,000 spindles with advanced spinning equipment; fabric machine exceeding 100,000 sets including 40,000 sets with shuttleless loom; 0.6 billion meters with dyeing and finishing outside material in medium and top grade; 80,000 tons with cotton knitwear consumption in yarn; 2.5 billion pieces/suits with clothes. The proportion of advanced equipment in the all industries will exceed 60%. At the same time, sales revenue will achieve RMB 100 billion and the added value will touch RMB 28 billion. The earned foreign currency by exporting goods will achieve 1.5 billion dollar and the profit payments and tax turnover will touch RMB 5 billion.

To facilitate people who want to invest and set up company in Hubei, 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 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. No. minimum registered capital is required for WFOEs with scope of business of consulting, Trading, retailing, information technology etc. in China. There are minimum registered capital still required for some industries for instance: Banking, Forwarding etc Since China still maintains foreign currency control policy, it's still advisable to choose registered capital within RMB 100,000 ~ RMB 500,000 as the minimum registered capital. Companies can now determine how much capital will be required to maintain their operations and must simply ensure that they meet those targets within a period of 10 years.

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, Hubei, 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 Hubei 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 Hubei 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 Hubei China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Hubei 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: tomlee@tommyconsulting.com, Skype: tomleeli

WhatSapp/Wechat/Cell Phone: +86 18926401128