Transcript North American Representative Office of Shenzhen

Doing Business in Shenzhen, China
July 24, 2007 Los Angeles
Andrew M. Pan
North American Representative Office of
Shenzhen, China (NAROS)
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China Regional Economy
West and Central
Regions
Northeast Region
Beijing
China
Dalian
Beijing-TianjinHebei Region
Tianjin
Xian
Suzhou
Shanghai
Chongqing
Guangzhou
Chengdu-Chongqing
Region
Macau
Shenzhen
Yangzi River
Delta Region
Pearl River Delta
Region
Hong Kong
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Shenzhen in Pearl River Delta (PRD)
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Shenzhen in 1982
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Shenzhen in 1985
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Shenzhen in 1998
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Shenzhen Today
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Facts and Figures
• City established in 1979, became China’s first SEZ in 1980
• About 10 million population, average age less than 30
• GDP in 2006 reaches USD 76.5 billion, ranks 4th among mainland
China cities. GDP per capita in 2006 is USD 8,815, ranks 1st in
China
• Shenzhen Port is the world’s 4th largest container port, 18.5 million
TEUs in 2006
• Shenzhen Bao’an International Airport is the 4th busiest passenger
airport in China
• Shenzhen Stock Exchange is one of two stock exchanges in China
• 120+ Global Fortune 500 companies have operations in Shenzhen
• The corporate headquarters for Huawei, ZTE, China Merchant
Bank, Ping’an Insurance and many other local China private
companies
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Facts and Figures
• Major Industries
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Traditional consumer products manufacturing
High-tech products manufacturing and R&D
Import/export city in mainland China
Logistics center for Southern China, especially Pearl River Delta
Regional financial center
• A young, vigorous migrant city with the culture of creativeness
and entrepreneurship
• China’s first SEZ with the most open market economy and a probusiness government
• Much lower operation cost compared with Shanghai, Beijing and
Hong Kong
• One of the best living cities in mainland China (air quality, green
space, foods and entertainment)
• 10+ five-star hotels, 10 world class golf courses. Mission Hills
Golf Club is the biggest golf club in the world with 216 holes.
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Foreign Investment Regulatory
Framework
Principal Laws Applicable to Foreign Investment
(Company Law, Wholly Foreign-Owned Enterprise Law,
Equity Joint Venture Law, Contractual Joint Venture Law )
Industry Regulations
“Catalogue on Guiding
Foreign Investment ”
“Administrative Measure for
Foreign Investment in the
Commercial Sector”
… ...
Government Department Economic Zone/Local
Regulations
Government Regulations
“Foreign Investment Enterprise
Income Tax Law”
“Administrative Measure for
Free Trade Zone”
“Rules of the PRC on Foreign
Exchange Control”
……
“Administrative Measure for
Export Processing Zone”
……
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Foreign Investment Regulatory
Framework
• Forms of Doing Business in Shenzhen
– Direct Investment Forms
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Equity Joint Venture (EJV)
Contractual Joint Venture (CJV)
Wholly Foreign-Owned Enterprise (WFOE)
Investment Holding Company (CHC)
Joint Stock Company
Foreign Investment
Enterprise (FIE)
– Indirect Investment Forms
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Direct purchase and sales
Toll/Contract manufacturing
Representative office
Licensing
Financing
Foreign Enterprise (FE)
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Foreign Investment Regulatory
Framework
Shenzhen Municipal Government
EJV, CJV, WFOE
Government Approval
Representative Office,
Company Name Certificate,
Business License
Shenzhen Bureau of
Trade and Industry
(BTI)
Shenzhen Administration
of Commerce and Industry
(AIC)
Other Follow-up
Registrations
Shenzhen Local
Taxation Bureau
Shenzhen State
Taxation Bureau
Shenzhen State Administration
of Foreign Exchange (SAFE)
District BTI
District AIC
Shenzhen Customs……
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Procedures for Setting Up
Representative Office
• Submitting Application
– Submit to Shenzhen Administration of Industry and Commerce (AIC)
– Address: Window #23, #24, East Hall of Building B, Shenzhen Civic
Center, 3rd Fuzhong Rd, Futian District, Shenzhen 518035, China
– Registration Fee: 600 RMB
– Processing Time: 5 business days
– Contact: 86-755-8210 7493, 86-755-8210 7494
• Getting the Certificate
– Valid Term: One year
• Documents to be submitted can be found at AIC website
www.szaic.gov.cn
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Procedures for Setting Up
WFOE or JV
I. Obtain Government Approval
• Submit Application
– Submit to Shenzhen Bureau of Trade and Industry (BTI) or District BTI
– Address: Window #8, #9, East Hall of Building B, Shenzhen Civic Center,
3rd Fuzhong Rd, Futian District, Shenzhen 518035, China (or call for
addresses of District BTI)
– Registration Fee: Free
– Processing Time: 5-30 business days
– Contact: 86-755-8210 7471
• Get the Certificate
– Government Approval Certificate
– Valid term: 30 years-no limit
• Documents to be submitted can be found at BTI website
www.szbti.gov.cn
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Procedures for Setting Up
WFOE or JV
II. Obtain Business License
• Submit Application
– Submit to Shenzhen Administration of Industry and Commerce (AIC) or
District AIC
– Address: Window #23, #24, East Hall of Building B, Shenzhen Civic
Center, 3rd Fuzhong Rd, Futian District, Shenzhen 518035, China (or call
for addresses of District AIC)
– Registration Fee: 0.08% for registered capital less than RMB 10 million,
0.04% for registered capital more than RMB 10 million, no fee for
registered capital over the cap of RMB 100 million
– Processing Time: 5 business days
– Contact: 86-755-8210 7493, 86-755-8210 7494
• Get the Certificate
– Valid term: 30 years-no limit
• Documents to be submitted can be found at AIC website
www.szaic.gov.cn
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Procedures for Setting Up
WFOE or JV
III. After Obtain Business License Certificate
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Shenzhen Administration of Quality and Technology Supervision: Obtain
National Organization Code
Shenzhen Bureau of Public Security: Engrave corporate seal
Shenzhen Local Taxation Bureau: Local tax registration
Shenzhen State Taxation Bureau: State tax registration
Shenzhen Financial Bureau: Financial registration
Shenzhen State Administration of Foreign Exchange: Foreign exchange
registration
Shenzhen Bureau of Labor and Social Insurance: Recruitment and social
insurance registration
Shenzhen Customs: Customs registration (if necessary)
Shenzhen Construction Bureau: Construction application (if necessary)
Shenzhen Fire Department: Fire control application (if necessary)
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Opportunities in Shenzhen:
Domestic Market Momentum
• Recent survey conducted by PwC
– Survey of 1,410 CEOs from 45 countries
– Projected overseas investment (2007-2010)
– 55% of respondents will invest in China (vs. 36% in India, 33% in
Brazil)
– 75% of respondents are attracted by China domestic market
opportunities
– 48% are attracted by lower manufacturing costs
Source: PricewaterhouseCoopers
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Opportunities in Shenzhen:
Domestic Market Momentum
Serve as regional
headquarters
Others
Q: No.1 goal of the US investment in China?
A: China domestic market opportunities.
(62%+ 11% = 73%)
Produce goods or
services for other
(non-China, nonUS) market
Export to China
5%
5%
11%
14%
Produce goods or
services in China
for the US market
3%
62%
Produce goods or
services in China for
the China market
100% = 345 companies
Source: 2005 AmCham-China and AmCham-Shanghai Member Questionnaire
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Opportunities in Shenzhen:
Service Sectors
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Distribution: retail, wholesale and direct marketing
Banking, consumer lending and insurance
Telecommunication and content driven providers
Logistics: transportation and package delivery service
Travel, education and entertainment
Construction engineering and consultation
Customer service
Business Process Outsourcing (BPO) and IT Outsourcing
(ITO)
• Professional services such as legal, accounting, medical
care and management consulting etc.
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Opportunities in Shenzhen:
Industrial Zones
• Industrial zones in Shenzhen provide various opportunities
for US companies with different business models
• Government provides incentives in many aspects
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High-tech park
Free trade zone
Export processing zone
Bonded logistic park
Overseas Chinese students park
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Our Office
Chicago
Shenzhen, China
San Francisco
• Main offices: Shenzhen
(China), Los Angeles
(west coast) and New
York City (east coast,
coming soon)
• Satellite offices: San
Francisco, Chicago
• Other overseas offices of
Shenzhen: Frankfurt,
Germany, Tokyo, Japan
and Sydney, Australia
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New York City
Our Service
We provide FREE services:
• Market Research / Feasibility
Study Assistance
• Partner Identification and
Negotiation Support
• Site Selection and Setup
Facilitation
• Government Relations in China
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Our Network
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Thank You!
For more information about doing business in Shenzhen,
please contact:
350 S. Figueroa St., Suite 288
Los Angeles, CA 90071
Tel: 213-628-9888
Fax: 213-628-8383
Email: [email protected]
Website: www.shenzhenoffice.org
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