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Shanghai Company Registration

Register Hongkong Company,open Hongkong Bank Account,use RMB settlement to realize the triangular settlement,and also reduce foreign exchange risk.

If you want to invest in Shanghai China, you don‘t just turn to the relevant government departments for so many certificates and formalities, but turn to TANNET. At TANNET we don‘t just give you tailor-made service for your need, but for your satisfaction. TANNET—serving the world of business, professional and worldwide.

ONE.  OVERVIEW OF SHANGHAI COMPANY REGISTRATION
Shanghai is the commercial, financial and logistic centre of China. Located in Yangtze River Delta, shanghai also has the largest port in mainland China. Shanghai has an area of 6,340 km2 and a population of more than 20 million. The complete legal system and the international standard market rule build a nice investment environment for Shanghai. If you setup your business in Shanghai, you can extend your business to the markets of Jiangsu, Zhejiang and Anhui provinces. As stated, Shanghai is an ideal city for living and working.

TWO.  THE CONCEPT OF WFOE
WFOE stands for wholly foreign owned enterprise, which is a limited liability company wholly owned by either foreign legal entity or foreign natural person. The foreign investors include those from Hong Kong, Macau, Taiwan enterprises.

THREE.  COMPANY NAME OF SHANGHAI COMPANY REGISTRATION
In Shanghai China, only Chinese company names are officially used, while English company names for reference only. Not every name will be accepted by the ICAB (Company Registry). For some sectors such as education, logistics, medicine and food industries, pre-approval special license is needed. It is important for you to know the wording of a company name should be in conformity with the registered capital and business activities, such as with the words "international" or "investment" or "industrial" within a company name, the registered capital should be more than RMB 10 million; while "group‘‘ or "holding" more than RMB 30 and 50 million respectively (The detailed information depends on the local stipulation). In addition, your company name must be distinguished from the others registered name before. If the word “China” within the company name, must do pre-approval by ICAB at national level in Beijing.

FOURSHAREHOLDER, DIRECTOR, MONITOR &LEGAL REPRESENTATIVE
Shareholders, directors, monitor and legal representative should be considered and arranged before the business setup. A shareholder could be a legal person (foreign company) or a natural person (individual). A director could be acted by a foreign person or a Chinese person. A monitor should be appointed to supervise the company’s operation and management. A monitor could be acted by a foreign person or a Chinese person. Legal Representative is a person in charge of corporate operation and management and development, responsible for all the legal affairs arising from the business running.

FIVEREGISTERED AND PAID-UP CAPITALS
In Shanghai China, the registered capital could be as low as RMB 30,000. Different business sectors are subject to different requirements. In Shanghai, the registered capital is equal to the paid-up capital. For the trading enterprise, the registered capital is usually required as much as USD 140,000 or above. For the manufacturing enterprise, the registered capital is usually required USD 140,000 or above (USD 200,000 is much better). For the service sectors, such as consultancy, technology, market research and development, the registered capital is usually required USD 140,000 or above. All of the registered capital can be paid in one time (within 6 months after the date of the issuance of the Company‘s business license) and can also be paid for many times in two years (In the first 3 months, 20% of the registered capital is mandatory). The terms of payment is determined by the volume of registered capital. The fee of paid-up capital confirmation will be reduced if the registered capital can be paid in one time.

SIXBUSINESS SCOPE OF SHANGHAI COMPANY REGISTRATION
Shanghai will enjoy more preferential policies since the position of financial & logistic centre has been established. Enterprises setup in Shanghai will enjoy wider business scope. The WFOE can conduct business within its approved business activities described on the business license. Tannet will help you for more business activities during the application. Amending the business scope requires further application and approval.

SEVENPREFERENTIAL POLICIES FOR WFOE IN SHANGHAI COMPANY REGISTRATION
Shanghai has promised more preferential treatment in a revised hi-tech policy recently to attract more foreign capital to the local hi-tech industry and to establish research and development institutes.The WFOEs set up in Shanghai Pudong New Area engaged in the construction of airport, sea port, railway, highway, power station, energy resource and transportation facility with an operating period over 15 years, are eligible for tax exemption in the first to fifth years and a 50% tax reduction in the sixth to tenth years, subject to the application by the enterprises and the approval from the tax authority in Shanghai. New and hi-tech enterprises set up in the new and high technology industry development zones, after getting certified as new and hi-tech enterprises, are exempted from income tax for two years commencing from the first profit-making year.
For more information, you are welcome to contact Shanghai Tannet at 86-21-68877368.

EIGHTWORKING PROCEDURE OF SHANGHAI COMPANY REGISTRATION
Step1: Fill out the application form (sign the agreement);
Step2: Company name search and confirmation;
Step3: Pay for the services;
Step4: Submit the needed documents;
Step5: Check the documents;
Step6: Prepare for the statutory documents; let the investors sign the documents personally; submit all the documents to the government;
Step7: Keep clients informed of processing;
Step8: Finish processing in 20-35 working days;
Step9: Hand over all the outcome to clients;
Step10: Sign the receipt.

NINEGORVERNMENT PROCESSING PROCEDURE OF SHANGHAI COMPANY REGISTRATION
Step 1: Check the company name with local CICB (工商局);
Step 2: Achieving an approval from the Fire and Environment Bureau(消防环保局) for manufacturing sector;
Step 3: Pre-approval for some special sectors;
Step 4: Go to the Foreign Economic &Trading Conmission(外经贸委)for certificate of approval;
Step 5: Apply for the business license from CICB;
Step 6: Apply for chops from the Public Security Bureau(公安局);
Step 7: Apply for the Organization Code License from Bureau of Quality and Technical Supervision(质检局);
Step 8: Apply for the registration licenses from National & Local Tax Bureau(国、地税局);
Step 9: Apply for the permits for the bank account opening from bank authorities;
Step10: Apply for Foreign exchange registration license from National Administration of Foreign Exchange(外汇管理局)
Step11: Open the basic account in the bank;
Step12: Apply for the IMPORT&EXPORT registration license from local Customs (if needed);
Step13: Apply for Financial Registration For Enterprises With Foreign Investment from Financial Department

TENDOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES
Step 1: Minutes or resolution from investors or board of directors;
Step 2: One proposed name (in Chinese), and provide two alternative names in case the first name is not available;
Step 3: Detailed information about the business scope and intended registered capital;
Step 4: Feasibility study report;
Step 5: Four original Memorandum & Articles of Association (M&A) signed by members of the Board and with company chop;(seek to Tannet’s assistance)
Step 6: Copy of the business license, or certificate of incorporation of parent company;
Step 7: The original and copy of identification documents(ID card , passport) of legal representative, and five color photos;
Step 8: Two original bank reference letters (from investor‘s bank) indicating foreign investors‘ creditability, issued within 6 months in both English and Chinese versions;
Step 9: Lawyer‘s legalization or notarization which should be endorsed by local China Embassy or Consulate;
Step 10: The lease of commercial office between leaser and lessee. The lessee should be acted by shareholders, directors, legal representative, monitor and manager. The lease should be endorsed by local Housing Authority. Make sure to get the formal invoice after leasing is done.

ELEVENDOCUMENTS  REQUIRED  FOR  MANUFACTURING  ENTERPRISES
Step 1 - Step 9 the same as above
Step 10: Production address: your own house property or the rented commercial workshop (two original copies of lease with signature and endorsed by Housing Management Authority. The signing party of lessee should be qualified for and on behalf of WFOE, such as its legal representative, shareholder, director or monitor. The area is required no less than 200 m2 and for manufacturing use only.
Step 11: Project reports are necessary for the approval by the relevant government department, such as, business service, environmental and fire departments. The manufacturing area should reach the required standard set out by the Fire Department and Environmental Protection Department.

TWELVE.DOCUMENTS REQUIRED FOR FOREIGN  INDIVIDUALS’  INVESTMENT
Step 1: Original & copy of identification documents (ID card, passport) of Chinese company‘s Legal representative, directors, monitors and manager;
Step 2: Local lawyer‘s legalization or notarization which should be endorsed by the Chinese Embassy or Consulate in your country
Step 3: Five color photos of the legal representative;
Step 4: Feasibility study report; (seek to Tannet’s assistance)
Step 5: Two original bank reference letters (from investor‘s bank) indicating foreign investors‘ credibility, issued within 6 months in both English and Chinese versions.

THIRTEENTANNET SERVICES, FEE & TERMS OF PAYMENT
1: TANNET package services for WFOE setup include:
seven copies of Approval document; 2 copies of original articles of association signed by members of the Board and with company chop; 2 copies of certificate of approval; Both original and duplicate copy of business license; 4 stamps for different use; Stamp carving registration card; Bank account documents; Both original and duplicate copy of Organization Code License & card; Registration license and form of National &Local Administration of Taxation; Foreign exchange registration license and approval certificate; Customs declaration registration certification; Financial Registration For Enterprises With Foreign Investment.
2: Service charge. Tannet service charge :
RMB16, 000. Government charge: around RMB 10,000.
3: Terms of Payment: The applicant can pay by cash, check or T/T to Tannet’s bank account before the service begins.

FOURTEENTAXATION ON WFOE
1. Overview of Taxation in China
The Tax System in China has undergone tremendous changes in recent years. Currently, there are 24 different types of tax imposed on a wide range of incomes and transactions. Taxpayers can be individuals, entities or economic organizations. To fulfill its WTO commitments, the Chinese government is currently preparing for another round of tax reform, which is expected to take place in 2010. Keeping place with compliance obligations in such a rapidly changing regulatory environment can be a major challenge. You are advised to seek professional advice from Tannet regarding your particular circumstances.

2.  Business and Taxation in China
Any investors, who want to succeed in their business-doing in China, are strongly advised to better understand tax departments, tax categories, tax rate and official invoices in China.
As far as China tax department is concerned, China has two functional tax departments: national tax department (NTD) and local tax department (LTD), the former is for national use while the later is for local use. In every city or town there are national and local departments. Any person can contact these departments for information. Taxpayer should know which tax department to go to and the tax rate before tax return, here are some guidelines for you:  Value Added Tax should be paid to NTD at rate of 0-17% monthly, Business Tax to LTD at rate of 3-20% monthly, Individual Income Tax to LTD at rate of 5-45% monthly, Enterprise Income Tax (EIT) is 25% to NTD at basis of quarterly return and annual renew,

3. China Tax Category and rate
The China tax could be classified as follows: Value Added Tax (VAT) at rate of 0-17%, Business Tax (BT) at rate of 3-20%, Enterprise Income Tax (EIT) at rate of 25%, Individual Income Tax (IIT) at rate of 5-45%, Consumption Tax by customs (CT) at rate of 3-5%, Resource Tax (RT), City Maintenance and Construction Tax (CMCT) at rate of 1%, House Property Tax (HPT), Stamp Duty (ST) at rate of 0.5-1%, Urban and Township Land Use Tax (UTLU)

4. Tax Return
Tax Return should be done monthly, quarterly and annually, Tax is collected on the basis of invoice volume, in China the invoices are granted from the NTD or LTD,

5. Tax Rebate
China government is stimulating its economy by encouraging export-orientated businesses; Any exporters can enjoy the export tax rebate as high as 17% according to their categories.

FIFTEENBUSINESS FOLLOW-UP OF SHANGHAI COMPANY REGISTRATION
TANNET can provide a series of business follow-up services such as monthly bookkeeping and tax return, annual return services, internal auditing, financial planning and tax layout, China policy & market study. Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc. in order to pave a smoother and wider way for your China business success.

SIXTEENPROCESSING PERIOD FOR WFOE
For the trading and service enterprise: it takes 40-50 working days to finish the processing before we get required documents ready.
For manufacturing enterprise: it takes 45-55working days to finish the processing before we get the required documents ready, especially the approval papers from the fire & environmental protection bureaus.

It takes longer time for the application of the import and export license or VAT qualification license.

SEVENTEENWHY CHOOSE TANNET?
1. Tannet is a professional business service outsourcing company, serving the world of business professionally and reliably since 1999.
2 Tannet is based in grand China, with an international focus, targeting at valued investment and strategic developments.
3 Tannet has built up nine service centres forming a massive international service platform, especially for SMEs. You are welcome to visit www.tannet-group.net for more.
4 In ten years’ growth, Tannet developed rapidly to more than 38 holding subsidiaries, 88 equity participants, over 3,000 cooperators, and in excess of 20,000 reliant clients globally. You can exchange resources among the Tannet’s clients.
5 Tannet is staffed by a professional team of industrial advisers, lawyers, accountants, engineers and consultants, with a wealth of experience, both in their respective professions with global expertise.
6. Through a ten year reputation, Tannet can provide its valued clients with the best 24/7 quality services, especially tailor-made to the customer’s needs.

EIGHTEENIMPORTANT HINTS
1. Because of language difference, all the documents submitted to the Chinese government should be translated into Chinese and endorsed by the appointed translation agency.
2. Since the market situation and government policy change frequently, all the information provided here is subject to Tannet’s final confirmation,
3. Tannet is responsible to inform the clients for the collection of the company kit at the designated office. If the clients fail to collect the company kit within the mandatory three month period without reasonable excuse, the client will be regarded as forfeiting the right to the registered company, Tannet can dispose the company as it wishes.
4. Make sure to get the formal invoice from the lesser after leasing is done.
5. The follow-up business services are not included in the service package, and are subject to further charge according to the clients’ requirements.

NINETEENCONTACT US
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website www.shanghai-company.net, or calling Hong Kong hotline at 852-27826888 or Shanghai hotline at 86-21-58369667, or emailing to tannet-overseas@hotmail.com. You are also welcome to talk with Overseas SME Service Department online by simply joining our MSN: tannet-overseas@hotmail.com.
Tannet——A Sound Global Business Solution Partner, Serving the World of Business, Professionally and Reliably.

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