My first Magazine Corporate Formation in china | Page 4

Enterprise (FIPE) in Shanghai, Beijing, Shanghai, 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 Shanghai 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
Since 2006, Tommy China Business Consulting has been focusing on consulting
services for our clients to invest in Shanghai. We are specialized in establishment