Founded in 2003, Shanghai Super City Business Consulting Co., Ltd. specializes in a series of consultation services to include application for approval certificates, business licenses and consultations of tax issues and preferential policies for foreign investors who intend to or have already set up companies and representative offices in China. Over a short time period, our professional, target-driven and efficient expert team has made a significant contribution to assist many famous corporate clients in establishing R&D centers, companies and representative offices in China. In addition, as a featured service item, we offer a detail-minded and time-efficient assistance in the application and renewal of permits and/or certificates including Health Certificate, Working Permit and Residence Permit necessary for expatriate executives who intend to or already reside and work in China.
Super City Business Consulting Company offers patient, meticulous and considerate Consultative services to PRC and foreign-invested enterprises.
Drawing on a long-term relationship and full support by Shanghai Foreign Service Company, our full range of services steps into the involvement not only in establishment of joint ventures and solely-invested enterprises but also in purchasing of enterprises, assets combination, amalgamation, etc. on which Super City is based to pool all professionals/resources and formulate an independent consultative company with higher efficiency into which the comprehensive related services and functions are incorporated as a whole. As of now, with more and more domestic and overseas investments flooding into the markets, we will be playing a more important role than ever to act on clients' behalves in providing consultation services ?A hands-on and reliable business investment advisor.
Joint Venture is a new business entity invested and created by PRC and foreign enterprises with both parties taking a joint responsibility in terms of management, operation and fiscal profit and loss.
There can be many immediate and unforeseeable difficulties laid in the course - finding a right partner, profit sharing and management issues but meanwhile also a lot of advantages for joint ventures such as less risks in startup, merits of different cultural backgrounds & better business strategies, etc.
Joint Venture, to some extent, could be the only efficient way for foreign investors to enter and set up a business existence in China within some industries or business fields still restricted or controlled by the China Government e.g. Building and Construction, Car Production, Cosmetics etc.
For some foreign investors, the prospect of commitment to a partnership with a Chinese investor could be hurdle-ridden and chock full of many unknown risks. They stand hesitant to share technology or business strategies. Others simply lack the necessary contacts.
The WFOE Law of the People's Republic of China was adopted on April 12, 1986 originally enacted to encourage manufacturing activities aimed at exporting of end products and drawing of advanced technology. On 12th April 2001, in order to eliminate legal barriers that would impede China's WTO entry, China announced significant changes to the existing WFOE regulations, including the repeal of restrictions to WFOEs as described above. As of today, WFOE, as one of the enterprise types in China, is increasingly being applied especially by overseas Service Providers in the fields of consultation, management service, software development and trading, etc.
The process of application for approval of a WFOE can be complicated for a new market player here. A majority of foreign investors engage professional consultation services via renowned intermediary organizations (Super City is one of the leading brokerage agencies in China to provide an A-Z service for foreign business application) to act on their behalves to prepare the WFOE application, lease site/space and render other related groundwork which would generally take several months. Once the application and Articles of Association for a WFOE are submitted, the appropriate Chinese authorities will start the scrutiny process and then issue a result status - approval, rejection or request for additional information or documentation necessary.
Representative Offices are established by foreign companies to engage in business liaison, product promotion, market research, exchange of technology and other permitted activities in China. It should be noted that foreign companies here refer to all companies incorporated outside China mainland, and those incorporated in Hong Kong, Macau and Taiwan. No. of Rep Offices to be set up by one foreign entity in China runs unlimited.
ROs are not allowed to directly engage in production or sales operational activities. This is specified in the Business Scope. As shown in an Approval Certificate of Rep. Offices, a RO is not permitted to engage in direct operational activities.
However, some ROs are engaged in a direct business operation a lawful or tacitly permitted way and constitute one of the direct foreign Investment forms in China. This is actually applicable to those industries not requiring special material conditions or environment for their operations. For example, a consulting business does not need manufacturing facilities or raw materials but offices, staff and office equipment. In practice, many foreign consulting companies just simply establish a RO to immediately start direct business engagement in China.
One of the most important issues in WFOE application is business scope. Business scope needs to be defined and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval. Generally, there will be an explanation and consultation with the authorities to include and approve as broad and alike business scope as permitted.
Commonly, business scope includes investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc. With China's entry into WTO, more and more business is open to WFOE especially in trade, commercial and wholesale businesses.
A joint venture can explore the under-utilized resources to realize maximum profits possible, create a new profit center, and help you enter untapped markets in a quicker and less costly way than a WFOE.
Joint Venture is a popular method of expanding business. Major corporations and mid-sized companies can supplement one another in terms of resources, expertise and technologies. Small companies can also follow suit on a more flexible basis.
Joint venture partners are matched by a process of closed proposal. Interested parties should submit a proposal they would like to implement, stating what they bring to the project and what they expect from a Joint Venture partner.
Foreign companies are not allowed to directly submit the application documents to the relevant authorities. They must retain a PRC entity that is authorized or permitted by relevant authorities to act as an agent. The agent will submit all the documents to the examination and approval authority on behalf of the foreign enterprise. Super City will provide a reliable, professional and escort-styled agent services to act on your behalf to go through all of the necessary procedures for business registration.
It is of key importance to note that a Representative Office is not a separate legal entity rather it is an extension of its parent enterprise. A Representative Office may only engage in non-profit making activities.