Brief Introduction to Shanghai

1. Brief Introduction to Shanghai China, Set Up Business In Shanghai, One Stop Company Registration Services In Shanghai China Shanghai has a great pro as it is located in the middle of north-south coastal line, with convenient transport system, vast land resources, and advantageous geographic location. It is located in front of the Yangtze River, close to the East China Sea in the east, face the Hangzhou bay in the south, connect with Jiangsu and Zhejiang province in the west, and close to the mouth of Yangzi River in the north. Located in the heart of the Delta Yangtze River, Shanghai has the world’s busiest container port Shanghai has great investment environment, which is seen by many businessmen and enterprises as: ever-increasing efficiency of government, construction of social honest, solid social security system, place of increasing international cooperation, good legal system, high information level, large group of talent in different fields, language advantage, balanced industry mix, complete adequate and systematic service, etc. Shanghai is the largest city by population in the People’s Republic of China. It is a major financial center in China and one of the most significant trade and finance centers in the world. It is one of China’s old industrial bases which thanks to reforms which took place for over past 20 years have been injected with new vitality. The city is also home to powerful Stock Exchange, the Shanghai Stock Exchange has been ranked third among worldwide stock exchanges in terms of trading volume and sixth in terms of the total capitalization of listed companies, and the trading volume of six key commodities. The importance of this metropolis is consistently increasing. Currently Shanghai is being ranked alongside with New York, Tokyo and London. Furthermore, Shanghai is one of the most prosperous cities in the world. Its

2. cosmopolitan character, sophisticated and wealthy consumers, and highly educated skilled labor force make it highly attractive to overseas investors. Infrastructure Shanghai has good city infrastructure and is a hub for ground, water and air transportation. Two International airports connecting to the world In 2012, the combined number of flights of Pudong and Hongqiao Airport totaled 596,700, up 4%. The number of passengers totaled 78.7084 million, an increase of 5.6%. Passengers taking domestic flights totaled 54.7374 million and passengers taking international flights totaled 23.9709 million, 4.7% and 7.6% higher than the previous year respectively. Railways and roads connecting to the whole country. Shanghai has four railway stations and conveniently connects all major cities in China. Up to the end of 2012, the total road length of the city exceeded 12,000 kilometers with 10,000 bridges, accounting for 14% provincial roads. Steady growth of port throughput and booming cruising business

3. In 2012, Shanghai’s port throughput totaled 736 million tons, 1.1% higher than the previous year. Container throughput totaled 32.5294 million TEUs, up 2.5%. Shanghai has been dedicated to cruising center of the Asia – Pacific Region. Shanghai Wusong International Cruiser Quay and Shanghai International Traveler’s Quay have received 180 cruisers in 2012, 67 more than the previous year. 128 cruisers took Shanghai as host port and the number of passengers totaled 350,300, 71.4% higher than the previous year. Convenient public transportation Up to the end of 2012, the city has 13 metros of 468.19 kilometers (including 29.11 km of Maglev Train). 6.277 – million people have been moved via public transportation throughout the year, 2.2% more than the previous year. 2.276 – billion people took metros, up 8.3%. The total length of dedicated lanes was 161.8 kilometers. The city itself is divided into: Central Business District Lujiazui Finance & Trade Zone and the Bund financial trade zone make up the Central Business District in Shanghai. Over 100 domestic and foreign financial

4. organizations have established in this district including the regional headquarters of many multi-national corporations, such as Siemens and Johnson & Johnson. Free Trade (Tax Bound) Zone 1.FTZ Bonded Area (28.78 sq.km.)

5. The bonded area of Shanghai FTZ consists of Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Free Trade Zone. Waigaoqiao Free Trade Zone, founded in 1990, is the first bonded area in China under the supervision of Shanghai Customs; Waigaoqiao Free Trade Logistics Park, established in 2004, is also the first bonded logistics park in China; Yangshan Free Trade Port Area, opened in 2005, is the first bonded port area in China; Pudong Airport Free Trade Zone, set up in 2009, integrates bonded logistics and cargo shipping. So far, 27 innovative policies that were tested in the FTZ bonded area have been introduced nationwide or in selected regions. Soon, 28 more policies covering investment, trade, finance, market opening and supervision will be popularized across the country. Six innovative practices for the customs and quarantine departments will also be copied nationwide. 2. Lujiazui Financial Area (34.26 sq.km.) Lujiazui Financial Area consists of Lujiazui Finance and Trade Zone and Qiantan Area. It is the core of Shanghai International Financial Center, Shanghai International Shipping Center and Shanghai International Trade Center. Work is under way to establish a financial system that follow international rules and practices, attract the headquarters of multinationals with fine services, and carry out reforms to facilitate foreign investment, cross-border trade, international financing and market supervision, and create a good legal environment for businesses. Qiantan Area, which used to be the site of Expo 2010, is a key area for a new round of development in Shanghai and is positioned as a hub of corporate headquarters, maritime financial services, cultural enterprises, sports and tourism facilities, and high-end services. 3. Jinqiao Export Processing Zone (20.48 sq.km.) Established in 1990, Jinqiao Export Processing Zone has become a showcase of advanced manufacturing, production services, emerging industries, and eco-friendly environment. The zone is focusing on administrative and financial reforms, creating good business environment to facilitate trade, and fostering strategic growth industries for sustainable growth and international competition. 4. Zhangjiang High Tech Park (37.2 sq.km.) Zhangjiang High Tech Park is a base for innovations as Shanghai implements the national strategy for sustainable growth. It combines the development of Shanghai FTZ and the Zhangjiang National Innovation Demonstration Area with a focus on enhancing its innovative capabilities and providing a service platform for research, financing, talent recruitment and resources sharing. Pudong New Area

6. Pudong is designed to be built as a multi-functional and radiant modern city. From 1990 to present, the total investment of capital construction in Pudong New Area amounted to USD 11 billion. The ten capital construction projects, represented by Pudong International Airport, Pudong Cyberport, Mass Transit (No.2), Waigaoqiao Electricity Generation Plant, East China Sea Natural Gas have been completed. For more information about Shanghai, Please visit http://www.shanghai.gov.cn/shanghai/node27118/index.html http://en.investment.gov.cn:8080/home/index.jhtml Shanghai Business Formation also can be understood as: Shanghai company setup, Shanghai corporate formation, Shanghai business setup, Shanghai company registration, Shanghai business establishment and Shanghai business registration To facilitate people who want to invest and set up business in Shanghai, here is an introduction of Types of business presence in China: 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

7. 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. 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, Shenzhen, 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 China 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

8. Since 2006, Tommy China Business Consulting has been focusing on consulting services for our clients to invest in Shanghai 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 Shanghai China, drafting privacy policies and structuring commercial transactions TCBC will manage all aspects of incorporation to get you a business license in Shanghai 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.

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