Fujian has a superior geographic position at the intersection of the Yangtze and Pearl River deltas, just 78 miles from Taiwan, and it has close trade and economic relations with China’s inland provinces. It also strives to promote the Haixi Economic Zone – the Economic Zone on the West Coast of the Taiwan Strait - with support from the central government.
Fujian has a competitive advantage from its large diaspora and its close cultural and business ties with Taiwan, and the economic and cultural integration of Fujian and Taiwan will reach unprecedented levels over the next few years. Fujian aims to use its many successes in cross-Straits cooperation [NOTE: is this correct?] and cross-South-China-Sea economic cooperation to position itself as a strategic economic hub.
Fujian is expected to become one of the main gateways to China and the Asia Pacific region, with industrial cooperation expanding to ASEAN countries, Japan and Korea, and to North American Free Trade Agreement (NAFTA) countries and the EU.
Strong foundation with great growth potential
Fujian has seen 30 years of robust growth and is still one of coastal China's most rapidly growing economies, ranking high among other provinces in per capita GDP, household consumer spending, and market privatization. Its key economic indicators are as follows:
An economic output worth $276 billion, in 2011, putting it in 12th place among all of China's provinces in 2010, with a GDP that surpassed the provincial average by 5 percent.
A per capita GDP worth more than $7,456 annually, putting it in 7th place among all provinces and aer capita GDP above the national average by 14 percent, with sales of consumer goods reaching $97.9 billion in 2011, and a CPI that remains stable during periods of rapid GDP growth.
Preferential policies
Fujian province was one of the first provinces to carry out the opening-up and reform policies of the central government for re-integrating with the global economy in 1978, and its strategic development plan for the new century calls for a West Coast Economic Zone open to the outside world through coordinated development. This is a comprehensive regional economic zone reaching into surrounding areas, and connecting both sides of the Taiwan Straits. It has its own natural features and advantages and was recognized as a national strategy in 2005.
The city of Xiamen, one of Fujian's most important, became one of China’s four Special Economic Zones (SEZ), at the time, which allowed it and later other cities in the province to open up large parts of the economy to foreign investment at an early date. Now, more than 30 years later, the central government has again chosen Fujian as a special development zone whose purpose is to integrate with Southeast China and the greater Asia-Pacific region.
The nation’s 12th Five-year Plan (2011-2016) calls for high-level policy support for Fujian for development in the following ways:.
1. Pilot cross-Straits cooperation program with Fujian being given special authority to experiment with increasing cross-Straits integration, with Xiamen and Pingtan used as cooperative districts in the economic and social spheres.
2. Greater infrastructure investment to link regional hubs via state-of-the-art rail, air and port facilities.
3. Develop a globally competitive industrial center focusing on high-value products in the electronics and industrial equipment sectors.
4. Build a strong cultural and outdoor tourism sector by capitalizing on the environmental resources and strong green province record.
Fujian Business Formation also can be understood as: Fuzhou company setup,Quanzhou corporate formation,Quanzhou business setup, Fuzhou company registration, Fuzhou business establishment and Xiamen business registration.
To facilitate people who want to invest and set up business in Fujian, here is an introduction of Types of business presence in China:
Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise (WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.
Wholly Foreign Owned Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.
Representative Office (RO) is a Liaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.
Joint Venture (JV) is a Limited liability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.
Since March 1, 2010: Measures of Establishment of Foreign Invested Partnership Enterprises (FIPE) in China is taking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Shenzhen, Hangzhou and rest cities of China
Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.
After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up in China becomes the first option of foreign investment's entity structures instead of Rep. Office setting up in China At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.
Business set-up in China is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls
Since 2006, TCBC has been focusing on consulting services for our clients to invest in Fujian China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business,negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Fujian China, drafting privacy policies and structuring commercial transactions
TCBC will manage all aspects of incorporation to get you a business license in Fujian China. We offer a range of company formation services including helping you to set up:
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises (FIPE)
Contact Tom Lee for business setup consulting in Quanzhou,Xiamen,Fuzhou,Fujian now.
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