How to set up Company in Shanghai

China could be the largest economy of the world, accounting for around 20% of the world GDP in 2050. Shanghai is China's financial center, and a very popular place for foreigners to set up a company. Shanghai is a global center for finance, manufacturing, trade, technology, science and education. The port of Shanghai is the world’s busiest container port. Shanghai's preponderance attracts more and more people to invest or start business in Shanghai.

So, what are the conditions if registered companies in Shanghai? What processes do Shanghai registered companies need?

How to choose your company type? It is the first you need to know when you start your business. In China, there are 4 modes of business presences for foreign investors: WFOE - Wholly Foreign Owned Enterprise (65%), RO - Representative Office (20%), FIPE - Foreign Invested Partnership Enterprise (10%) and JV - Joint Venture (5%). About 65% of foreign clients chose WFOE as their China business entity since a WFOE could freely conduct its business in China and allows the client to the maximum level of control over its business like any Chinese domestic companies. The client may also be able to bring in management personnel from its parent company to oversee the operation.

WFOE is an acronym for Wholly Foreign Owned Enterprise. It is a 100% foreign owned (individual or corporate) limited liability company able to generate profit, invoice clients and hire local and foreign employees in China. WFOEs are the most popular business structure for foreign businesses entering China.

For the process when you start company registration in Shanghai there will have several procedures, such as how to choose your company name/ registration address/ register company capital/business scope/tax registration/company bank account opening/ if you need apply additional qualification depend on your business, different business may have different requirements and documents.

contact us we will set up a free consulting meeting with you and give you professional advice especially for your business.

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