History
In 1992, under the authorization of People’s Government of Hubei Province, Wuhan Wujiashan Taiwanese Businessman Investment Zone was established.
In January of 2000, under the authorization of Taiwan Affairs Office of CPC Central Committee (Taiwan Affairs Office of State Council) as well as Ministry of Science & Technology (M.O.S.T.) of P. R. China, Wuhan Wujiashan State-level Science and Technology Industry Development Park across Taiwan Strait was established.
In July of 2002, under the authorization of Department of Agriculture, Wuhan State-level Food Processing Zone was established.
In 2002, under the authorization of State Environmental Protection Administration, it became the State-level Eco-Demonstration Construction Region.
In 2013, with the approval of State Council, Wuhan Wujiashan State-level Economic and Technological Development Zone was renamed as Wuhan Linkonggang Economic and Technological Development Zone.
Introduction
Located at Hankou, Wuhan Linkonggang Economic and Technological Development Zone encircles Jiang’an, Jianghan and Qiaokou districts. Therefore, it enjoys a geographic advantage as well as convenient transportation, with Wuhan-Chongqing and Beijing-Guangzhou railways, Beijing-Zhuhai, Shanghai-Chengdu and Lanzhou-Hangzhou express ways, as well as 107 and 318 national roads going through, and Hanjiang River and Yangtze River neighboring around.
Wuhan CPC municipal committee and municipal government have made the decision to build it into the largest area of Taiwan-funded enterprises in central China, the new “hundred-billion-RMB belt”, the “Two-Oriented Society” demonstration zone of Wuhan and an exchange platform for positive interaction across the Taiwan Straits.
Dongxihu District of Wuhan City, Wuhan Wujiashan State-level Science and Technology Industry Development Park across Taiwan Strait, Wuhan State-level Food Processing Zone, and Wuhan Province-level Industry Park of Taiwanese Businessman, all of above belong to an integrated district with both administrative zone and development zone.
A foresaid district is one of the top three places with fast economic development, one of the top five foreign capital concentration districts which have been attached great importance for improvement, one of the top three exporting bases of automobile spare parts and as well as one of the top three logistic zones.
It is also the city to provide service outsourcing business --- Demonstration Zone of Wuhan Logistic Service Outsourcing Business, which is located to the north of West and Middle Ring Road in urban area of Wuhan City, and gets tight connection with Hankou District.
The acreage of the district is about 500 kilometers (wherein development zone takes 180 kilometers). Registered permanent residents in this area are 230,000 and resident population is about 420,000. Up to the end of 2006, the increase scope of GDP financial income over the whole district has been listed No.1 of the whole city as well as the whole province within the past sequent eight years.
To facilitate people who want to invest and
set up company in Wuhan Linkonggang Economic and Technological Development Zone, 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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