INVESTMENT

Whether you are looking to invest cash, equipment, technology, know- how, or managerial experience, Shanghai can meet your demands. Once you have decided to invest in Shanghai, your next step will be to determine what form your investment will take, and into which industry you will inject it. This decision should be founded upon the scope and nature of your business, the intended capital contribution and if you desire a Chinese company partnership. Sinefun can help you determine the route best suited for you and initiate the registration process. No matter the nature of your business, size and capital involved, Sinefun has the knowledge and proficiency to register your investment and guide you along you future endeavor. Please research the options available below to determine which one best suits your needs and contact Sinefun for any questions.

 

The three most common routes of investment are as follows :

  • Representative Office

  • Joint Venture

  • Wholly Foreign Owned Enterprises

 

Other routes of foreign investment include :

  • Sino-Foreign Managerial Contract

  • Sino-Foreign Assembly and Processing Contract

  • Compensation Trade

  • Foreign Invested Enterprises (FIE)

 

 

SINO-FOREIGN MANAGEMENT CONTRACT

This is essentially a contract whereupon the foreign entity agrees to provide management expertise and training proficiency.
Very popular in the hospitality industry, the foreign entity, in exchange for his/her services, will enjoy a share of the revenue of the Chinese enterprise.
Certain restrictions and regulations do apply


SINO-FOREIGN ASSEMBLY AND PROCESSING CONTRACT

This route is commonly used to establish a manufacturing foundation in Shanghai.
A foreign investor may enjoy manufacturing benefits in Shanghai without actually establishing a business.
Generally, the foreign investor will provide the raw materials and components needed for processing, while the Chinese party provides the factory, plant and labor.
The terms of revenue and profit distribution is determined by the terms of the contract.

 

COMPENSATION TRADE

This route requires the foreign party to contribute advanced technology and equipment to enable the Chinese counter-part to manufacture the pre-agreed products.
The foreign counter-part, in exchange for his/her contributions, will receive a percentage of the goods manufactured.

 

FOREIGN INVESTED ENTERPRISE (FIE)

This route may include setting up a new FIE, acquiring an already existing FIE, acquiring an interest in an established FIE, or converting a domestic company into a FIE.
A Chinese counterpart is optional, depending on which type of FIE you choose.

The three different ways to invest in a FIE are :

1 - Equity Joint Venture

2 - Contractual Joint Venture

3 - Wholly Foreign Owned Enterprise

 


 

The above/below information constitutes a general overview of the business registration process in China and is intended to give our potential clients an idea of the said process. For more information and cooperation prospects, contact