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.
Ningbo Free Trade Zone (NFTZ) was established in 1992 upon the approval of the State Council.It is one of the 15 free trade zones authorized by the State Council of China, and is the only free trade zone in Zhejiang province. Covering an area of 2.3 square kilometers, the zone consists of an East Area, West Area and South Area.
Located to the east of Ningbo, with Ningbo Beilun Port, the second largest port in China as its neighbor, NFTZ has a complete transportation network composed of expressways, railways and by sea.
Ningbo Export Processing Zone (NEPZ) was set up in 2002, one of the second batch of export processing zones authorized by the State Council. Joined with South Area of NFTZ, NEPZ covers an area of 3 square kilometers. Ningbo Bonded Logistics Park (NBLP) was established in 2004, one of the first eight trial areas authorized by the State Council to carry out integrated operations between the free trade zone and the port. Located at the back of the fourth phase wharf of Ningbo Port, the zone covers an area of 0.95 square kilometers.
The Chinese government has authorized NFTZ, NEPZ, and NBLZ special policies and functions. NFTZ enjoys special policies such as being "exempted from licenses, exempted from duties, and bonded duties" under special customs custody.
The NEPZ and NBLP, NFTZ have three major functions: import and export processing, international trade and warehousing logistics.
NFTZ has advanced the development of manufacturing industry and modern service industry, including international trade, advanced manufacturing, including TFT-LCD, IC, and computers, warehousing and logistics.
A growing modern logistics center and trading center, NFTZ has attracted many investors from home and abroad with its unique functions, position, and policy advantages. Up to now, more than 6,600 companies from some 60 countries have invested there.
In 2015, NFTZ's GDP totaled 17.5 billion yuan ($2.62 billion), with a year-on-year increase of 7.5 percent; its revenue reached 4.15 billion yuan, with a year-on-year increase of 6.7 percent; its total industrial output totaled 36 billion yuan, with a year-on year increase of 5 percent, and its volume of international trade reached $13.29 billion, with a year-on-year increase of 1 percent.
To facilitate people who want to invest and set up business in Ningbo Free Trade 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 Free Trade Zone now.
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