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Many businesses are choosing to create a proactive global expansion plan by extending their business’ reach to Shanghai. The Shanghai Foreign Investment Zone is a bonded area with a unique custom supervision system that does not involve all of the customary rules related to this process.

This approach limits the regulatory measures imposed on businesses and allows WFOE to be established in mainland China. Horizons can help you expand your global reach by establishing your business in the Shanghai Foreign Investment Zone.

Read: China Officials Pass New Foreign Investment Law

Benefits of expanding your business to the Shanghai foreign investment zone

The Shanghai Foreign Investment Zone is one of the most coveted areas for business expansion. Many businesses are taking advantage of the significant benefits of expanding their business to the Shanghai Foreign Investment Zone such as:

  • 100% foreign ownership permitted – You can set up a wholly foreign-owned enterprise in the Shanghai Foreign Investment Zone, allowing you full control over your business. 
  • No real property investment required – While typically you would need a physical location to set up a legal entity in China, this is not a requirement in the Shanghai Foreign Investment Zone. 
  • No requirement for registered capital – While most businesses in China must register a certain amount of capital with the Chinese governments and deposit these funds into Chinese financial institutions, the Shanghai Foreign Investment Zone does not have this requirement. This allows you to launch your business in China much faster with less capital investment.
  • Fast setup – With the help of Horizons, you can set up your business in China in a matter of days in some cases. 
  • Greater flexibility – There are no limits on the scope of your business. 
  • Low risk – With minimal capital investment required, you can enter the Chinese market with little risk.
  • Intellectual property protection – Because China is a first-to-file jurisdiction, launching your business and registering your intellectual property can provide you with greater protection and recognition of your trademark and other intellectual property.

These impressive benefits have encouraged many significant businesses to expand their operations to China, including most recently Tesla.

How Horizons can help with your Shanghai expansion

Horizons have subject matter expertise in a variety of industries. Whether you are hoping to launch an e-commerce business in China, open a local shop, participate in the export/import market or establish a new business, our experts can help.

We can conduct market research to determine if your product or service will appeal to the local market and target your marketing efforts for the Asian market. We have successfully developed strategies for large multinational companies, small businesses, and entrepreneurs. We can help you launch your business by completing the following steps:

  • Register your business in China Our consultants can analyze your business model and help you determine the best type of entity that is suited to your business needs and model. We can then take all legal steps necessary to incorporate this business type.
  • Opening a foreign bank account – China has complex rules regarding the use of bank accounts for foreigners. We can explain these rules and the requirements for capital investment. Because there are strict international money transfer restrictions in China, it is important to establish a foreign bank account to ensure that you can be paid.
  • Providing a registered address – We can provide you with a registered address to meet the necessary requirements, including an address for a virtual office.
  • China Trademark – The Chinese trademark registration system is based on a first come first serve basis. Hence, it is important to register your brand’s trademark and logo in China as early as possible. Having an international trademark is not helpful as a foreign trademark is not enforced in China.

Comprehensive business services to make your Shanghai expansion a success

Expansion a success

At Horizons, we focus on empowering our clients to form successful businesses in China and other Asian countries. We provide a host of services to help you streamline your administrative processes, reduce your overhead expenses and launch your business in record time. Some of the business services we offer include:

  • Recruitment and Talent Search  – Our experts have access to the best talent across the globe. We can help identify the key characteristics of the ideal employee for you and connect you with only the top candidates.
  • Visa Service – Do not allow complex immigration rules to stop you from hiring the best employees. We can walk you through this process and provide assistance from start to finish to secure the work and resident visas your foreign workers need.
  • Staffing/PEO – One of the major hurdles that stop many businesses from entering the Shanghai market is staffing. Many companies are not familiar with China’s complex employment laws related to the need for employment contracts, set terms for contracts, benefits requirements, mandatory leave provisions, and other complex employment matters. Ultimately, we simplify the management of your international workforce. We also provide PEO services in China so that we can take over all legal responsibilities as the Employer of Record so that you can have access to talented staff without having to worry about compliance matters.
  • Payroll – Horizons competently handles all issues related to payroll, mandatory deductions, and taxes. We can set up and run employee payroll calculations, handle payments to third parties, make necessary deductions for social charges and comply with all local and national tax requirements. We manage benefits packages and leave and holiday pay. We can also prepare annual tax declarations and reports for your business. We can also ensure that your business meets all tax requirements, including setting up a tax invoice and fapiao system.
  • HR Management  – Horizons has developed unparalleled expertise in managing the human resources functions of various types of businesses. We provide first-class solutions to streamline your human resources processes, reduce your overhead costs and provide you with a hassle-free option through a comprehensive global human resources management system.