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Shanghai Business Setup

Shanghai Corporation Formation-Overseas-funded Enterprise

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Overseas-funded Enterprise in Shanghai according to the current classification by SAIC, foreign direct investment in Shanghai is divided into four categories, namely Sino-Foreign equity joint venture, Sino-Foreign Co-operative Joint Venture ,Wholly Foreign Owned Enterprises and Foreign-Funded Companies Limited by shares.


Overseas-funded Enterprise in Shanghai-Wholly Foreign Owned Enterprise (WFOE)
Registered Capital: USD$140,000 is a decent investment capital for many types of WFOE. (with USD$ 140,000 investment it's easy to get approved). Initial Paid-up could be 20% of the registered capital, with the balance being remitted within 2 years. RMB 100,000 ~ RMB 500,000 (Approx. USD$15,000- 75,000) is the minimum investment capital to be approved for Consulting WFOE, Service WFOE, Hi-Tech WFOE registration.The minimum registered capital guides for various industries according to our practice in Shanghai.

Overseas-funded Enterprise in Shanghai-The Sino-Foreign Joint Venture Enterprise
1- EJV (Equity Joint Venture)
Equity joint ventures are the second most common manner in which foreign companies enter the China market and the preferred manner for cooperation where the Chinese government and Chinese businesses are concerned.

2- CJV (Cooperative Joint Venture)
In a Sino-Foreign Cooperative Venture (also known as Contractual Joint Venture), the parties involved may operate as separate legal entities and bear liabilities independently rather than as a single entity. A cooperative venture may also be registered as a limited liability entity resembling an equity joint venture in operation, structure, and status as a Chinese legal entity.There is no minimum foreign contribution required to initiate a cooperative venture, allowing a foreign company to take part in an enterprise where they preferred to remain a minor shareholder.

Overseas-funded Enterprise in Shanghai-The Foreign Invested Partnership Enterprise
1.At lease 2 or more partners ( no requirements on the nationality of a Partner)
2.a written partnership agreement; contribution subscribed to or actually paid by the partners;
4.a business name and an office in an office building for the partnership enterprise.

Overseas-funded Enterprise in Shanghai-the Representative Office(RO)
Setting up a representative office is the most inexpensive entry form for foreign enterprises to enter the Chinese market. And about 20% of investing clients have chosen Representative Office as their Xiamen business entity since setting up a representative office is cost efficient and it requires no capital investment. A representative office basically is to serve as a liaison office between a foreign company and its business partners in Xiamen, and to coordinate the parent enterprise activities in Xiamen (travel arrangements, promotion etc.). Representative offices are applicable for many industries: trading, shipping, consulting, etc.

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