Ningbo is a harbor city in Zhejiang province and one of China’s most prominent ports. The Ningbo-Zhoushan port is the fifth-largest in the world and the third-busiest in China after Shanghai, Shenzhen and Hong Kong. It is bound by the East China Sea and Zhoushan Archipelago in the east, by Hangzhou Bay in the north, by Shaoxing in the west, and by Taizhou in the south. In 2007, the Hangzhou bay bridge was built, connecting Ningbo with its neighbors. Ningbo has established intermodal rail services that connect it to 13 inland ports. It also has the largest specialized dock for storing liquefied chemical products in China.
Overview of Ningbo Economic and Technological Development Zone
Ningbo Economic and Technological Development Zone (NETDZ) was established in October 1984 with the approval of Chinese central government. NETDZ lies to the northeast of Ningbo, about 27 kilometers away from the city center. It covers a total area of 614 square kilometers behind the Beilun Port. And it is only 40 kilometers away from Ningbo Lishe Airport, 150 kilometers from Hangzhou Xiaoshan Airport, 230 kilometers from Shanghai Hongqiao Airport and 250 kilometers from Shanghai Pudong Airport.
NETDZ has established a very smart soft and hard investment environment, becoming one of the most attractive places for investment both at home and abroad.
Government services
The administrative committee of NETDZ is authorized with same power as provincial government in terms of foreign-funded project approval with investment up to 1.99 billion yuan ($300 million). It is fully responsible for investment, economic development and other social undertakings in the zone.
NETDZ provides a one-stop service from project consultation, site-surveying, agreement negotiation, contract signing, project approval and construction. Moreover, related government departments such as the investment service center, supervision office and complaint center have also been established in NETDZ to better cater investor needs. On top of that, the online approval system has given great convenience to investors.
State banks, commercial banks and foreign-funded banks are all available in NETDZ. Besides, commodity inspection bureau, notary houses, law firms, accountants, architectural planning & design institutes, transportation firms and insurance companies have all been established in the zone.
Infrastructure
Power Supply
Nine power plants with a total installed capacity of 10.41 million KW are on stream in NETDZ.
Water Supply
The daily water supply capacity is 410,000 tons with a cycled network.
Steam Supply
Five thermal power plants can ensure sufficient steam supply.
Industrial Gas
In the zone, Linde Gas, Messer Sunshine Gas Company as well as other professional providers can supply different kinds of quality industrial gas.
Fuel
The embarking point of East China Sea Chunxiao Gas & Oil Project is in NETDZ, which can provide sufficient natural gas. With the completion of CNOOC LNG project, six million tons of LNG will be provided annually. CNPC can also supply abundant LPG in the zone. In addition, suppliers within 20 kilometers include: Zhenhai Oil Refinery and Donghua LPG.
Sewage treatment
Two sewage treatment plants are available in the zone, with a number of sewage treatment stations and pumps. A complete sewage treatment system has been established with daily capacity of 180,000 tons
NETDZ has developed itself into an advanced manufacturing base, with four pillar industries: port-based industry, high-tech and emerging industry, equipment manufacturing industry and modern service industry.
Industries such as steel, papermaking, traditional energy, molding, electric wire and cable, textiles and garment, stationery and food are also being improved.
By the end of 2012, NETDZ had approved 2,030 foreign-funded enterprises with a total investment of $32.18 billion (214.75 billion yuan) and contracted capital of $16.5 billion, among which 473 are large-sized projects with registered capital of more than $ 10 million each.
Over 30 Fortune 500 have invested in NETDZ with 67 projects in manufacturing and services.Investors in NETDZ come from 49 countries and regions. Total investment amounted to $32.18 billion by the end of 2012.
Port-based industry
NETDZ has been an important petrochemical and steel manufacturing base in China, taking advantage of Beilun Port.Petrochemical industries are represented by Taiwan Formosa Plastics Group, Yisheng Petrochemical and Dow Chemical.Ningbo Steel with an annual capacity of four million tons of wide thick board, and Baoxin Stainless Steel with a million tonnage hot-roll and cold-roll output are the two dominating enterprises in the steel manufacturing industry.
Port-oriented industries also include energy enterprises like Beilun Power Plant, and ship-building and its components manufacturers like Samsung.
High-tech and emerging industry
Represented by the world's third-largest LCD panel manufacturer CMO and supported by over 50 enterprises such as Ling Mao optoelectronics, a relatively complete optoelectronics industry chain has been formed in NETDZ.
A new system of modern marine industry is to be created, including marine engineering equipment and new marine materials.Other developing high-tech and emerging strategic industries include Internet sensors, integrated circuits, high-end software and new energy.
Equipment manufacturing industry
With Geely Automobile as its flagship, the automobile industry in NETDZ has been integrated into the global competition system and the automobile industry base has formed matching famous automobile companies from home and abroad.
The plastic injection molding machine industrial base with complete supporting enterprises in NETDZ is known as the Capital of Plastic Injection Molding Machine in China.The mold manufacturing base in NETDZ has gained the name of Die-casting Mold Town in China.
Modern service industry
NETDZ is becoming a modernized international logistics center in Zhejiang and even in East China carrying a significant influence. The Trinity port service system including logistics, finance and information is to be vigorously developed.
NETDZ is going to be an important commodity storage and distribution center in East China and a strategic material reserves base in the Yangtze River Delta.
It is also focused on developing the outsourcing business of port-related logistics and information technology.NETDZ will also develop service outsourcing, film and television animation, e-commerce, software development, personnel training and other projects.
To facilitate people who want to invest and set up business in Ningbo Economic and Technological Development Zone,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 Establishmentof 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 Ningbo , Beijing, Ningbo , 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 Ningbo 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 . Tommy China Business Consulting has direct connections in the local government
Since 2006, TCBC has been focusing on consulting services for our clients to invest in Ningbo 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 Ningbo China, drafting privacy policies and structuring commercial transactions
TCBC will manage all aspects of incorporation to get you a business license in Ningbo China. We offer a range of company formation services including helping you to set up:
-Wholly Foreign Owned Enterprises (WFOE )
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises (FIPE)
Contact Tom Lee for business registration in Ningbo Economic and Technological Development Zone now.
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