Shenzhen Business Setup (FIPE) is one of Tannet's domestic business incubation services. If you want to invest in China, you don't just turn to the relevant government departments for certificates and formalities, you turn to TANNET as well. At TANNET, you will be provided with tailor-made service that not only suits your need but also meets your satisfaction.
I. Overview of Shenzhen
Shenzhen is the best place to do businesses in China. Situated in the Southern China, Shenzhen is the first Special Economic Zone in mainland since China has carried out reform and open-door policy 34 years ago. Shenzhen has an area of 953 square km’s and a population of more than 10 million. Shenzhen is a better city both for living and working over other major cities in China as it is recognized as the youngest and fastest growing city nationwide and worldwide.
In Shenzhen, you can enjoy sound infrastructure and intensive industrial chain for manufacturing, trading and value investment. Since Shenzhen is bordering Hong Kong, it is also an ideal place for you to benefit from the “one country, two systems” policy.
II. THE Concept of FIPE
FIPE stands for Foreign Invested Partnership Enterprise, which is an entity owned by the foreign investor(s) and Chinese investor(s). The foreign and Chinese investors both refer to individuals (including Hong Kong, Macau and Taiwan).
III. Different types of FIPE in Shenzhen
1. General partnership Enterprise (GPE): A general partnership enterprise may be formed by general partners who bear unlimited joint and several liabilities for the debts of the partnership. The general partners share unlimited liabilities for the debt of the partnership.
2. Limited partnership enterprise (LPE): A limited partnership enterprise is formed by a combination of general partners and limited partners where the limited partners bear the liabilities for the partnership's debts to the extent of their capital contributions.
IV. FIPE Name
The Shenzhen government has a name format for anyone who wants to setup a FIPE in China, the format is: Shenzhen + trade name + business scope+ partnership enterprise+ (GPE)/ (LPE). In China, only Chinese company names are officially used, while English names are for reference only. Any names are subject to the approval of relevant authority.
V. FIPE Partners
The Minimum number of partners should be 2, there are no requirements on the nationality of a Partner, thus it can be all foreign investors to form a FIPE or Foreign and Chinese partners mixed FIPE. A partner could be acted by a natural person (individual) aged 18 or over.
VI. Business Scope
One of the most important things is to define the business activities of the FIPE. Business scope is narrowly defined based on many factors, such as trade names, registered capital and business scope. FIPE can only conduct business within its approved business scope on the business license. Amending the business scope need further application and approval if the name reserve is not successful. For some sectors such as education, logistics, medicine and food industries, pre-approval license is needed before we enter into normal processes.
VII. Registered and Paid-Up Capitals
1. In China, the registered capital is different from varied situations and sectors. Shenzhen has carried out preferential policies for the registered capital. There is no more limitation about the minimum registered capital. Investors can decide the amount of the registered capital according to the company’s business plan and cost. For the manufacturing enterprise, the registered capital can be RMB 1 million or more. For the trading and wholesaling, the registered capital can be around RMB500,000; for retailing, around RMB300,000; for the service sectors, such as consultancy, technology, market research and development, the registered capital can be around RMB100, 000.
2. The capital to be subscribed in lump sum as contemplated in the Articles of Association can be paid up within 5 years from the date of the issue of Business License. The registered capital can be paid up by one time or by several times according to the company’s business plan and actual development.
VIII. Preferential Policies for FIPE in Shenzhen
From March 2015 on, Shenzhen canceled the requirement about capital verification report. Foreign invested company does not need to issue the capital verification report after paying part of or all registered capital. They only need to fill in the information about capital paying on the government website for public notice.
From July 2015 on, Shenzhen carried out the policy of combining 4 certificates/licenses into one; the Business license, Registration card of Stamp Carving, Tax registration card and Organization Code Certificate are combined into the Business License. Contact TANNET for more information at 86-755-82143422.
IX. Tannet Service Procedure
Step1: let clients fill out the application form (sign the agreement);
Step2: Confirm the company name, business scope, registered capital and shares;
Step3: Check the required documents for the clients;
Step4: Pay the services;
Step5: Prepare for the statutory documents for the investors to sign personally;
Step6: Forward documents to related government departments;
Step7: Keep clients informed of processing;
Step8: Finish processing in 30-50 working days;
Step9: Collect the documents and items and settle the balance if any.
X. Government Processing Procedure
Step 1: Checking the company name with local Company Registry (深圳市市场监督管理局MSA, Market Supervision Administration of Shenzhen Municipality);
Step 2: Achieving an approval from the Fire and Environment Bureau (消防\环保局) for manufacturing sector;
Step 3: Pre-approval for some special sectors;
Step 4: Apply for the business license from MSA (市监局);
Step 6: Apply for stamps from the Public Security Bureau (公安局);
Step 7: Open the saving account with the bank (current account could be opened later) (银行);
Step 9: Apply for the Import & Export registration license from local Customs (if needed) (海关);
Step 10: Apply for special permits if involved with any.
XI. Documents Required For The Trading Enterprises
Part one, documents needed to be prepared from abroad as follows
1. Copy of the business license or certificate of incorporation of parent company;
2. The original and copy of identification documents (ID card, passport) of legal representative, and eight color photos;
3. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version;
4. Lawyer’s legalization or notarization which should be endorsed by local China Embassy or Consulate
Part two, documents needed to be prepared from Shenzhen as follows
1. One proposed name (in Chinese), and provide two or more alternative names in case the first name is not available;
2. Detailed information about the business scope and intended registered capital;
3. Detailed information of legal representative, shareholder, director, monitor, manager) ;
4. The lease of commercial office between lesser and lessee needed to be endorsed by the Housing Management Authority. The lessee should be acted by shareholders, directors, legal representative, monitors or manager.
XII. Documents Required for the Manufacturing Enterprises
Item 1 - 9 the same as above
10. Manufacturing address: house property certificate or the lease of industrial workshop (two original copies of lease with signature and endorsed by Housing Management Authority. The area is required no less than 200㎡ and for manufacturing use only with more than one year’s rent.)
11. Project reports are necessary for the approval by the relevant government department, such as, business service, environmental and fire departments. The safety standard of manufacturing area should reach the required standard set out by the Fire Department and Environmental Protection Department.
XIII. Documents Required for the Foreign Individuals’ Enterprises
1. Original document & copy of identification documents (ID card, passport) of Chinese company's legal representative, directors, monitors and managers;
2. Local lawyer's legalization or notarization of the investor’s passport endorsed by the Chinese embassy or consulate in the investor’s country;
3. Eight color photos of the legal representative;
4. One original bank reference letter (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version.
XIV. Our Services
TANNET provides one-stop and tailor-made services for foreign companies which would like to set up FIPE in Shenzhen China. TANNET package services include: both original and duplicate copy of Business License; 3 company chops which include Company chop, Financial chop, Legal representative’s personal chop, partnership cooperation agreement;
XV. Follow-Up
TANNET can provide a series of follow-up services to customers, such as bank account opening, CPA report, bookkeeping, auditing, monthly tax return and tax layout, annual return services, financial planning and China market study, Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc.
XVI. Processing Time Needed
For manufacturing enterprise: it takes 50-60 working days to finish the processing before we get required documents ready, especially the approval papers from the fire service department & human environment committee.
For the trading and service enterprise: it takes 15-25 working days to finish the processing before we get required documents ready.
XVII. Tannet Advantages
1. TANNET has established a global service system with 38 branches and 3000 cooperators worldwide, as well as in excess of 20,000 reliant clients globally. You can find one TANNET always beside you.
2. TANNET is staffed with a strong professional team of lawyers, accountants, engineers, designers and consultants providing tailor-made and all-in-one service.
3. There is a B2B business platform available for the international buyers and sellers of SMEs, www.ono-bbb.com.
4. TANNET is the best partner with international banks, financial institutes. TANNET also provide PIPO service.
5. TANNET is in conformity of the standard of ISO9001/2008. That means the service quality is guaranteed.
XVIII. Contact Us
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.
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