Invest in Shanghai

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 Shanghai growthin 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 cosmopolitan character, sophisticated and wealthy consumers, and highly educated skilled labor force make it highly attractive to overseas investors.

Shanghai has recorded double-digit growth for 19 consecutive years since 1992 to become the center of finance and trade in new China. In 2010, Shanghai’s total GDP grew to 1.687 trillion RMB (US$256.3 billion) with GDP per capita of 76,000 RMB ($11,540).

Thousands of international companies have relocated to Shanghai, including the regional headquarters of the World Trade Organization, due to the growth in worldwide significance of the city’s financial district. Shanghai is growing at an unprecedented rate, and is therefore likely to be considered an investment hotspot for some time to come.

Location& Infastucture

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 is a major hub of China’s expressways network. Many national expressways pass through or terminate in Shanghai.

Shanghai has three major railway stations: Shanghai Railway Station, Shanghai South Railway Station, and Shanghai Hongqiao Railway Station. All three are connected to the metro network and serve as hubs in the railway network of China. Two main railways terminate in Shanghai: Jinghu Railway from Beijing, and Huhang Railway from Hangzhou. Hongqiao Station also serves as the main Shanghai terminus of three high speed rail lines: the Shanghai–Hangzhou High-Speed Railway, the Shanghai–Nanjing High-Speed Railway, and the Beijing–Shanghai High-Speed Railway, China’s most important high speed rail line.

Shanghai is one of the leading air transport gateways in Asia. The city has two commercial airports: Shanghai Pudong International Airport and Shanghai Hongqiao International Airport. Pudong Airport is the main international airport, while Hongqiao Airport mainly operates domestic flights with limited short-haul international flights. In 2010 the two airports served 71.7 million passengers (Pudong 40.4 million, Hongqiao 31.3 million), and handled 3.7 million tons of cargo (Pudong 3.22 milliontons, Hongqiao 480 thousand tons).

 

Investment environment

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.

New policy for foreign investment
In order to encourage FDI in China and establish headquarter of multinational company, four policies has been issued. Expanding fund management functions of local headquarters, improvement management of staff to quit and enter. Thirdly, local headquarter appointed with research function by government, can enjoy relevant preferential policy of high technology. Finally, exporting rights should be equipped to local headquarter.

 

FDI

Foreign direct investment in the city in 2010 grew by 15.1 percent – more than three times the rate posted the previous year. Shanghai attracted US$15.3 billion in contracted foreign investment last year, more than 15 percent compare to a year earlier. The pace picked up dramatically from the increase of 4.5 percent in 2009, when the global financial crisis pinched the world economy, making foreign investors reluctant to dip into their pockets. The number of foreign-invested projects jumped 26.4 percent year on year to 3,906 in 2010, with more investment going to modern services and advanced manufacturing sectors.

By the end of 2010, 305 multinational companies, including 74 on the Fortune Global 500 list, had set up regional headquarters in Shanghai, while 319 foreign-invested research and development centers were established in the city. In 2011, Shanghai still plan to encourage foreign investors to retain core business in the city.

 

Tax of Shanghai

Usually Shanghai Company can be registered in development areas. So that it can’t only get preferential policy but also do business in urban district. When the company registered in development area pay for the income tax, after some time it can get a return from 70% to 80% of the local tax. All the preferential policies for investors home and broad will be in accordance with government policy actually.

Our Services

- Shanghai WFOE Company Registration
- Shanghai Representative Office Setup
- Shanghai Joint Venture
- Hong Kong Company Registration
- Offshore Company Registration
- China & Offshore Bank Account Setup
- Accounting, Audit services
- International Tax Advisory & Planning

Contact Form

Name

E-mail

Phone

Subject

Your Message