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| 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 1st in major cities in Central China and 8th among 100 major cities in China. It is a city with great potential.
Special industrial zones
1. Wuhan Optics Valley AreaWith 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 )
-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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