Introduction
Establishment:
Starting construction in May 1991, Wuhan Economic & Technological Development Zone(WEDZ) is a national level development zone approved by the State Council of P.R.C. in April 1993. Under the approval of state Council, WEDZ established the export processing zone in April 2000. In August 2006, the zone was approved as the National Level Automobiles and Parts Export Base by the Ministry of Commerce and National Development and Reform Commission.
Location:
WEDZ is located at southwest of Wuhan City between middle ring and external ring of the city road, around 30 min drive to the port and railway station, 40 min drive to the airport. The zone is 200sq.km with a very favorable geographical position and spacious space for development.
Geology:
WEDZ is on the Yangtze River III terrace which is mainly composed of clay soil about 18－30 meters thick. The average ground bearing is over 30t/㎡. Hydrology and engineering geology condition is appropriate for various industrial uses.
Industry Cluster
WEDZ has its own distinctive characteristics in industry cluster, with complete industrial chain. There are two pillar industries automobile and electronics; and four leading industries, i.e. packaging, food & beverage, biopharmaceutical, new energy and new material.
Automobile Industry:
Wuhan Economic &Technological Development Zone was established as a national level Development Zone initially because of the automobile manufacturing industry located here. As one of the most concentrated automotive industrial areas in China, we have the headquarters of automotive makers such as Dongfeng Motor, Dongfeng Peugeot citroen Motorand Dongfeng Honda Motor, 6 automobile factories including DPCA, Dongfeng Honda, 16 automobile R&D centers including Cummins R&D, as well as 180 automotive parts manufacturers including Visteon, Lear, etc.
Electronics:
WEDZ is one of the main manufacturing bases of LCD monitors and air conditioners in China. The total annual capacity of Wuhan Top Victory Electronics is 20 million LCD monitors. Meiko electronics (Wuhan) can produce 570,000 square meters of epoxy printed wiring board a month. Midea, Haier and GREE can produce 12 million air conditioners, 2 million water heaters and 1 million refrigerators a year.
To facilitate people who want to invest and
set up company in Wuhan Economic & Technological Development Zone(WEDZ), 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 )
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises
(FIPE)
Please visit:http://www.tommyconsulting.com/CorporateFormation.html
Email: tomlee@tommyconsulting.com, Skype:
tomleeli
WhatSapp/Wechat/Cell Phone: +86 18926401128
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