Q&A on Enterprise Registration in China (Shanghai) FTZ-Company Formation_Trademark Registration_Tax Service - Hong Kong CPA

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Q&A on Enterprise Registration in China (Shanghai) FTZ

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As China's “Experimental field of reform and opening up”, China (Shanghai) pilot free trade zone has more advantages on enterprise registration and development compared with the non-FTZ registration area. Therefore, Shanghai FTZ is very popular among new established enterprises. Now that there are so many advantages on enterprises registration in Shanghai FTZ, let's go through more about Shanghai FTZ (herein after called “SHFTZ) below.

Q:	What is China (Shanghai) pilot free trade zone?
A:	The China (Shanghai) Pilot Free Trade Zone, located in Pudong New Area, is a regional free trade zone founded on Sept 29, 2013 and originally consisted of Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Free Trade Zone. The State Council decided on December 28, 2014 to expand SHFTZ by incorporating Lujiazui Financial Area, Jinqiao Development Subzone, and Zhangjiang High Tech Subzone, enlarging the SHFTZ from 28.78 square kilometers to 120.72 square kilometers.
Q:	What are the advantages of setting up a company in SHFTZ?
A:	The SHFTZ has advantages in the following aspects: negative list filing management. It is only SHFTZ that has consistent control over domestic and foreign capital off the negative list being implemented. In another word, when it comes to the registration of foreign-invested companies and projects, they can simply quickly and efficiently apply in the SHFTZ, while in other places they should undergo examination and approval on a case-on-case basis, which can be a long and arduous process. openness of its service and manufacturing industries. SHFTZ implements filing management over foreign investment. Now foreign investment of less than $300 million only needs to be filed in the zone, and it can be completed in three workdays. a new trade facilitation mode. The special customs supervision areas in the zone are piloting a mode that allows ease of control on the first line, effective and efficient control on the second line and free trade within the zone. SHFTZ also boasts financial innovation as an advantage. Financial openness and innovation are the highlights of the zone's reforms. At present, SHFTZ is the only pilot zone of free trade account-based separate accounting and cross-border RMB and foreign currency financing. corporate tax incentives. The SHFTZ also provides corresponding preferential tax policies according to enterprises types and different registration area in SHFTZ.
Q:	What are the entry conditions for foreign merchant to establish enterprises in the SHFTZ? Does it need any approval?
A:	The examination and approval system of SHFTZ has been changed from "examination and approval system" to " record-filing system ". The record-filing system for foreign investment refers to implement the record-filing management in areas other than the negative list and in accordance with the consistent management principle of domestic and foreign investment to cancel the examination and approval of the establishment and change of foreign-invested projects and foreign-invested enterprises. The record-filing system shall be implemented for foreign-invested projects (except for those approved by the State Council for the retention of domestic investment projects), and the record-filing management shall be implemented for the establishment and change of foreign-invested enterprises. First, the foreign investment project has been changed from “approval system” to “record-filing system”. Second, the establishment of foreign-funded enterprises was changed from examination and approval to record-filing management.
Q:	What are the ways of foreign investment access a system of pre-entry national treatment plus a negative list management for foreign investment in SHFTZ?
A:	The SHFTZ adopts the system of pre-entry national treatment plus a negative list management for foreign investment, the approval mode is adopted for those in the negative list, and the record-filing mode is adopted for those out of the negative list.
Q:	What are the requirements for the registered capital for establishing a company in SHFTZ?
A:	In accordance with the latest Company Law, unless otherwise stipulated by laws, administrative regulations and decisions of the State Council on the minimum amount of registered capital in a particular industry, the regulations of minimum amount of registered capital of a limited liability company shall be RMB30,000, the minimum registered capital of a one person limited liability company shall be 100,000 yuan, and the minimum registered capital of a joint stock limited company shall be 5 million yuan Limitations have been cancelled. No longer limit the proportion of the initial capital contribution of all shareholders (promoters) when the company is established, no longer limit the proportion of the monetary capital contribution of all shareholders (promoters) in the registered capital, and no longer stipulate the time limit for the shareholders (promoters) to pay their full capital contribution.

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