Investment Procedure

1. Finding a location, filling in the project table

2. Registration and approval of the enterprise’s name

3. Evaluation of the project

4. Reporting the feasibility study report, contract, articles of association and waiting for reply

5. Receiving the notification of the registration and approval for the enterprise’s code

6. Receiving the certification of approval

7. Gathering the license and publishing the proclamation

8. Carving the common seal

9. Receiving the code of the enterprise

10. Opening accounts for RMB and foreign currency

11. Tax registration

12. Registering at the Customs

Investment Methods

A Chinese-Foreign Equity Joint Venture is a limited company in China approved by the Chinese government, which is jointly invested by foreign companies, enterprises, economic organizations or individuals with a Chinese company, enterprise or other economic organization. The risk, profit, and deficit should be shared.
A Sino-Foreign Cooperative Enterprise refers to an enterprise established in China with the approval from the Chinese government, according to the stipulations of the “Law of Sino-Foreign Cooperative Enterprises”, by foreign enterprises, economic organizations, or individuals within Chinese enterprises or organizations. The rights and obligations should be explicit within the cooperative contract.

A Foreign Owned Enterprise is in accordance with the Law of the People’s Republic of China on Foreign-Capital-Enterprises. The enterprise within the territory of the People’s Republic of China within the approval of the Chinese government, which is completely invested by foreign companies, enterprises, other economic organizations and/or individuals. The affiliates of foreign enterprises or organizations in China are not included.

Merger with and Acquisition of Domestic Enterprises by Foreign Investors means a foreign investor purchases the stock right from a shareholder of a non-foreign-invested enterprise in China. Or one could increase the capital of a domestic company so that a person could re-establish a domestic company, by conversion, as a foreign-invested enterprise. Or, a foreign investor establishes a foreign-invested enterprise and, by the agreement of the enterprise, purchases and operates the assets of a domestic enterprise. Or, a foreign investor could purchase the assets of a domestic enterprise by agreement and use these assets as an investment to establish a foreign-invested enterprise and operate all the assets.

Authority for Examining and Approving

Intrusted by Shanghai Foreign Investment Commission, the People’s Government of Minhang District inspects and gives approval to the projects with investment of  less than 30 million US Dollars, which can be classified into the state “encouraged” category and the projects of less than 10 million US Dollars, which can be “permitted”.

In addition, the projects of less than 30 million US Dollars in the industrial parks, namely Zizhu Science-based Industrial Park, Xinzhang Industrial Park, and the North Minhang Industrial Park are also included.

Advantage of Customs

As China’s top Customs in terms of total import and export value, Shanghai Customs has introduced "5+2 Days" work system, in order to make sure that a goods clearance is possible everyday at the port.
There are three customs in Minhang District, which can deal with the import and export business independently.

It takes only four hours to finish the clearance when all materials are prepared. Then the enterprises can declare with electronic data, so that the time that goods stay at the port is shortened and the cost of trade is also reduced.