Guangzhou Investment Guide
Guangzhou Company Registration
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Guangzhou Investment Guide-Guangzhou advantage
As one of the central cities of China and core cities of the Pearl River Delta, Guangzhou has long been the top choice for multinationals for investment deployment in China since China's reform and opening-up.
The Outline of the Plan for the Reform and Development of the Pearl River Delta (2008-2020) (the Outline) gave Guangzhou new roles, namely China's central city as well as a comprehensive portal city and a regional culture & education center; It also put forward that Guangzhou shall be built into the "best place" in both urban and rural Guangdong and an metropolis with international exposure and serving China as well. According to the Outline, Guangzhou will work to improve high-end elements clustering, scientific &technological innovation, cultural guidance and comprehensive service offerings, highlight the development of high-end service industries and accelerate the construction of advanced manufacturing bases, so as to intensify its role and enhance its influence as a central city of China. Based on the plan, it will take about ten years to develop Guangzhou into a metropolis with international exposure and serving China as well.
Guangzhou Investment Guide-Profound historical connotations
As a 2,200-plus-year commercial city, Guangzhou has long been the maritime trade center since the Qin and Han Dynasties, and was the only foreign trade port city in the Ming and Qing Dynasties. Guangzhou rose, grew and flourished based on commerce and trade, which has far-reaching influence in the history.
Today's Guangzhou is an important commercial center of China. With the goal of developing into an international commercial and trade center, it has worldwide reputation for hosting China Import and Export Fair, and the goods made in Guangzhou are sold across the globe. Relying on its unique geographical location and backed by the abundant Pearl River Delta, Guangzhou remains strong as a great oriental port despite twists and turns.
Guangzhou Investment Guide-Economic Environment
Since China launched the reform and opening-up campaigns more than 20 years ago, Guangzhou's economy has been expanding at an average annual rate of 13%. Today, Guangzhou ranks third among major Chinese cities in terms of comprehensive economic strength. The city's industrial and agricultural production has been increasing constantly and foreign trade has been growing by leaps and bounds. Guangzhou is a central city in China's economic growth with a solid foundation in industry, a flourishing tertiary industry sector and balanced economic development.
Guangzhou Investment Guide-Superior Geographical Location
Guangzhou has superior geographical and regional advantages. In terms of distance, Guangzhou is located in the geometrical center of the economic circle of Southeast Asia and therefore it is equidistant from Japan and Southeast Asian countries within a flight voyage of 3 to 4 hours in general.
In terms of geographical location, Guangzhou is an open coastal city neighboring Hong Kong and Macao, and the economic, political, and cultural center, and also the commercial center, which combines manufacturing, transportation, commerce, finance, information, education and human resources as a whole. It is located in the center of the Pearl River Delta, one of the most economically dynamic and flourishing areas in China. Guangzhou exerts an impact on China, East Asia and even the world with its economic capacity and radiation.
Guangzhou Investment Guide-Beautiful Living Environment
Enjoying the reputation of "the City of Flowers", Guangzhou has won a series of awards these years, such as the National Habitat Award, the International Awards for Livable Communities, the UN Habitat Scroll of Honor Award, the European Favorite Tourist Destination in China and the first prize of the Compromise México Water Prize by the World Water Forum. After hosting the 16th Asian Games in 2010, Guangzhou has been equipped with bluer sky, clearer waters, more sufficient traffic, lovelier communities and more beautiful urban landscape.
Taking pride in her profound historical and cultural resources, Guangzhou has been among the first batch of cities who has been awarded title of National Famous Historical and Cultural City. She is known as the core area of Lingnan Culture, the place of origin for the ancient Maritime Silk Road, the cradle of the democratic revolutions and the pioneer of implementing the policy of reform and opening up. Since ancient times, Guangzhou has always been the most famous commercial port in South China. She is also the earliest trading port in China and has never been shut down since her establishment. Guangzhou has been the only trading port in China before the opening of other ports and when the "one port policy" was implemented since 1757 to about 1837. Also known as Canton, Guangzhou is of global influence. The commercial culture highlights her urban features. Thanks to the exchanges and trades with the outside world through the years, Guangzhou has become increasingly open and acceptant. Since the implementation of the policy of reform and opening up, Guangzhou has further featured her pioneer, pragmatic and enterprising spirit and has taken the lead to establish close ties on economy and trade with countries and regions all around the world.
Guangzhou Investment Guide-Forms of investment
The foreign investments are basically divided into direct investment and other means of investment. The direct investment, which is widely adopted, includes Sino-foreign joint ventures, joint exploitation and exclusively foreign-owned enterprises, foreign-funded share-holding companies and joint development. The other means of investment includes compensation trade and processing and assembling.
Guangzhou Investment Guide-Sino-foreign joint ventures
Sino-foreign joint ventures are also known as share-holding corporations. They are formed in China with joint capitals by foreign companies, enterprises, other economic organizations and individuals with Chinese companies, enterprises, other economic organizations and individuals. The main feature is that the joint parties invest together, operate together, take risk according to the ratio of their capitals and take responsibility of losses and profits. The capitals from different parties are translated into the ratios of capitals, and in general the capital from foreign party should not be lower than 25%.
The Sino-foreign joint ventures are among the first forms of China's absorption of foreign direct investment and they account for the biggest part. At present they are still a great part in the absorption of foreign investments.
Cooperative business is also called contractual cooperation businesses. They are formed in China with joint capitals or terms of cooperation by foreign companies, enterprises, other economic organizations and individuals with Chinese companies, enterprises, other economic organizations and individuals. The rights and obligations of different parties are embedded in the contract. To establish a cooperative business, the foreign party, generally speaking, supplies all or most of the capital while Chinese party supplies land, factory buildings, and useful facilities, and also some supply a certain amount of capital, too.
Wholly foreign-owned enterprises
Exclusively foreign-owned enterprises, which are totally invested by foreign party in China by foreign companies, enterprises, other economic organizations and individuals in accordance with laws of China. According to the law of foreign-funded enterprises, the establishment of foreign enterprises should benefit the development of our national economy and agree with at least one of the following criteria: the enterprises must adopt international advanced technology and facility; all or most of the products must be export-oriented. The foreign funded enterprises often take the form of limited liability.
Joint exploitation in Guangzhou
Joint exploitation is the abbreviation of maritime and overland oil joint exploitation. It is a widely adopted measure of economic cooperation in the international natural resources field. The striking features are high risk, high investment and high reward. The joint development is often divided into three steps: exploitation, development and production. Compared with the other three means mentioned above, joint cooperation accounts for a small ratio.
Foreign-funded share-holding companies
Foreign companies, enterprises, other economic organizations and individuals can form foreign funded share-holding companies in China with Chinese companies, enterprises, and other economic organizations. The total capital of the share-holding company is formed by equal shares，shareholders will take due responsibilities for the company according to shares purchased; company will take responsibilities for all its debts through all its assets and the Chinese and foreign shareholders will hold the shares of the company. Among them, the shares purchased and held by foreign investors account for more than 25% of the total registered capital of the company. Limited company can be founded either by means of starting-up or raising, and the limited liability company invested by the foreigners can also apply to turn into share-holding companies. The qualified enterprises can also apply to issue A & B share and list abroad.
New types of foreign investment
While expanding areas and opening-up domestic market, China is also exploring and expanding actively its new types of utilizing foreign investment such as BOT (Build-Operate-Transfer), investment companies and so on. Since multinational merger and acquisition has become the major type of international direct investment, Chinese government is now researching and enacting related policies so as to facilitate the foreigners to invest in China by means of merger and acquisition.
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