This handbook has been updated on 2007, May 15.
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Good Location:
Located on the west bank of the Pearl River at its entry to the South China Sea, Zhuhai lies adjacent to Shenzhen and Hong Kong across the river to the east, and adjoins Macau over land to the south.
Hot spots for foreign investment:
Zhuhai is one of the hot spots for foreign investment. By the end of 2002, investors from 52 countries or regions had invested in Zhuhai, with 7,303 direct foreign investment projects. More than 30 famous transnational companies, such as Mitsubishi Corp., Mitsui & Co. Ltd., Toshiba, Canon and Panasonic from Japan, Flextronics from Singapore, Carrefour from France, Exxon Mobil, Coca-Cola, Celenese and Flextronics from US, BP from UK, Siemens and DaimlerChrysler Group from Germany as well as Philips from Netherlands had settled down in Zhuhai. In 2002, foreign-funded enterprises covered 71.6% of Zhuhai's industry gross output value and taxation, 48%. Now Zhuhai has established trade relationships with 140 countries and regions. In 2003, the city hosted the first World Economic Development Declaration Conference.
Sustentation:
As one of the earliest special economic zones in China, the city enjoys local legislative power granted by the National People's Congress. Zhuhai boasts a comprehensive, outward-looking economy with new- and high-tech industries as the core and supported by the coordinated development of a diverse range of services and industries such as commerce and trading, tourism, finance, real estate, information, logistics, agriculture and fishery. Back up by well-developed infrastructure facilities and sufficient power and water supplies, Zhuhai ranks among the top mainland cities in terms of coverage rate of water and power supply network, cable TV network, and broadband network.
Good Environment:
The city has won the "State Environmental Protection Model City" award for several years in a row, as well as the "International Best Practices to Improve the Living Environment" award by the United Nations Center for Human Settlement. Moreovere, Zhuhai was also named the "National Advanced City of Science and Technology".
Labor and Employment:
For more than 20 years, Zhuhai has devoted itself to building a market-orientated employment mechanism. In 2002, the unemployment rate in the urban area was 2.94%. By 2004’s data, the city's population had been reached 1.33 million, of which, 0.79 million were permanent residents.
Review of Zhuhai’s Economy in 2006:
Local budgetary financial revenue hit 6.03 billion yuan ($771 million) in 2006, retail sales of consumer goods 25.55 billion yuan ($3.27 billion), and investment into fixed assets 25.5 billion yuan ($3.26 billion), up 21, 15.1 and 21.8 per cent respectively.
Imports and exports topped $32.8 billion, with exports at $14.8 billion, ranking first among cities in the Pearl River Delta. RMB and foreign currency savings deposits registered a balance of
1.15 trillion yuan ($14.7 billion) in 2006, a year-on-year increase of 15.4 per cent, helped Zhuhai become one of the Top Ten China Financial Ecological Cities.
City infrastructure is increasingly more comprehensive and great achievements have been made in environmental protection. The Guangzhou-Zhuhai Intercity Railway is being constructed and work on the Guangzhou-Zhuhai Railroad will resume soon. Preliminary work on the Hong Kong-Zhuhai-Macao Bridge and construction of two 50,000-tonnage ship container wharfs and a public petrochemical wharf are progressing smoothly. Cooperation between Zhuhai Airport and Hong Kong Airport is now concrete.
A group of old in-town villages have been reconstructed and unfinished buildings completed. Sewage treatment in urban areas has exceeded 63 per cent.
Meanwhile, an economic system reform went into action. A new round of government institutional reform and administrative examination and approval system has been instituted. The Zhuhai Civil Service Overall Handling Centre went into operation. Actually utilized foreign direct investment totaled $1.96 billion in the past three years, a rise of 29.3 per cent.
Education, public health, culture and sports undertakings underwent all-around development in 2006. The goal of becoming a Guangdong Provincial Education-Intensive City was achieved a year ahead of schedule. Twenty-five weak rural schools have been merged or renovated and
55,000 rural students have been covered by free compulsory education. The number of on-campus college students totaled 63,000, ranking second in the province. Coverage of a new cooperative rural medical system reached 88 per cent.
The information industry and electrical machinery manufacturing are the two engines of growth of Zhuhai's industrial sector where new- and high-tech industries are making up an increasingly large share.
Zhuhai's top 10 industries are:
Electronics and communications, electrical machinery, electricity and gas, instruments and meters, textiles and garment, plastics and metals, pharmaceuticals, food and beverages, chemicals, and paper making. In recent years, the city authorities have realigned the priorities for developing five key sectors, namely electronics and communications, electrical machinery, petrochemicals, biomedicine, and software.
Thanks to the implementation of consolidation to foster the software sector, especially following the issuance of the Several Policies on Encouraging the Development of the Software and Integrated Circuit Industries and the establishment of the national software base in Zhuhai, the output value of the software sector has been growing at an average annual 50%. About 500 software companies are currently operating in Zhuhai. The industry as a whole is developing on a fast track in a positive direction.
Services industries:
Zhuhai enjoys unparallelled advantages in developing services industries in the Greater PRD region. The proportion of the city's primary, secondary and tertiary industries is 3.6 : 57.3 : 39.1. Services have been expanding rapidly to make up a significant share of the economy. Leading sectors such as trading, commerce, distribution and tourism continue to surge while the real estate market is growing at a steady pace as control measures take hold. Modern services such as finance and insurance, warehousing and transportation, post and telecommunications, and logistics are also posting rapid growth. Tourism, logistics and convention and exhibition will become the development priorities of Zhuhai in future.
Commercial services:
Zhuhai's well developed commercial sector comprises a large number of supermarkets, department stores and western-style restaurants, including famous French retail chain Carrefour, Vanguard, Moi Department Store, Minrun Xinqixing, Jusco, McDonald's, Kentucky Fried Chicken and Pizza Hut.
Financial services:
Zhuhai's financial sector has expanded into a network of more than 600 establishments. In addition to the People's Bank of China and the state-owned commercial banks, a number of foreign banks have also established a presence in the city, including Nantong Bank, Standard Chartered Bank, Bank of East Asia of Hong Kong, and Banco Nacional Ultramarino of Macau.
Human resources:
From 2001 to 2004, Zhuhai has set up 17 universities and a large number of R&D bases. The QSI International School of Zhuhai recruits students among the expatriate community in the city. The talent database currently has 1,770 entries. Nearly 2,000 tertiary institution instructors and R&D experts have taught or conducted research in the city. The Zhuhai National Hi-tech Industrial Development Zone and United Laboratories of Zhuhai have recently been approved by the Ministry of Personnel to establish post-doctorate research centers in the city.
Legal Services:
Zhuhai stresses the protection of intellectual property rights, and has adopted various measures to actively implement the relevant State laws and regulations. In 1996, the Press and Publications Bureau was set up to work on behalf of the municipal government exercising supervision and administration, and providing services to the press and publications sector.
Legal services in Zhuhai have developed rapidly. At present there are 31 law firms, with 335 registered lawyers. Approved by the provincial administration of justice, a government-funded law firm has been established in Zhuhai.
Comprehensive economic development zones:
Apart from the Xiangzhou special economic zone, there are five other special zones all of which have reached a mature stage of development and are performing specific economic functions. They are: Zhuhai National Hi-tech Industrial Development Zone, Zhuhai Bonded Zone, Wanshan Marine Development Experimental District, Hengqin Development Zone, and Zhuhai Harbour Industrial Zone. Meanwhile, foundation for the construction of the Zhuhai-Macau cross-boundary industrial zone was laid at the end of 2003 and the overall plan for the Zhuhai part is now completed. Tenders are expected to be invited soon for the construction of infrastructure facilities and construction will then officially begin. The Zhuhai National Hi-tech Industrial Development Zone has been expanding steadily to encompass the technology and industrial parks of Nanping, Sanzao, Xinqing and Baijiao, as well as the demonstration base for the commercialisation of hi-tech achievements. The development zone has also established the "University Park" to serve specific functions and develop itself into a region with unique advantages.
The Zhuhai-Macau cross-boundary industrial zone, with its foundation laying ceremony taking place on 9 December 2003, marked the start of a new era of all-rounded cooperation among Zhuhai, Hong Kong and Macau under CEPA.
Gongbei Customs of Zhuhai set up a country of origin office and developed nine sets of standards and procedures including online supervision; verification, analysis and monitoring of country of origin; measures for mutual assistance and liaison with Macau authorities; and measures for Gongbei and other customs authorities to verify Macau-origin goods.
At the same time, Zhuhai organises a series of CEPA promotions such as publishing the Zhuhai CEPA Services Guide, organising CEPA related networking events, launching a CEPA website and establishing hyperlinks with relevant Hong Kong and Macau government websites, and enabling investors from Hong Kong and Macau to complete investment project advance registration online.
To facilitate CEPA implementation, Zhuhai installs an automated entry-exit visitor checking system and a one-stop electronic passenger vehicle checking and clearance system at Gongbei checkpoint since 2004. With the two new systems, customs clearance efficiency significantly improved from 40 seconds to 3 seconds per visitor, and from 1 minute to 15 seconds per vehicle.
Zhuhai announced the incentives for investing in the Zhuhai-Macau cross-boundary industrial zone on 19 December 2003.
Customs supervision:
The entry-exit of goods will be administered by a filing system where no tariffs or licences are required. Equipment, parts and components, building materials and reasonable quantities of office supplies for own use and fuel for production use are exempt from tariffs and import-related VAT. The new customs clearance model of "one declaration, one checking of forms and one inspection" will be applied to the import-export of goods. There will be no restriction on the ratio of domestic to export sales. Materials, parts and products imported by export processing enterprises may be sold domestically provided that tariffs and import-related VAT are duly paid.
Foreign exchange control:
Both foreign currency and RMB can be used for settlement. Enterprises may retain foreign currency as working capital. Both domestic and foreign financial and insurance institutions may set up branch operations or offices in the zone.
Inspection and quarantine:
Goods imported by enterprises in the zone from Macau for producing export processing products can be exempt from quality inspection. However, if scrap material is being used as raw material, environmental protection inspection is still required in accordance with the relevant regulations. Goods leaving the Zhuhai part that are subjected to inspection can be exempt from quality inspection and food hygiene inspection provided that they do not carry the "made in China" label or China-registered trademark or China origin label, or are not required by inspection and quarantine authorities to present quality certificates.
Due to geographic proximity and extensive personal connections, Zhuhai has long fostered close ties with Hong Kong and Macau. Business people from Hong Kong and Macau are among the longest-standing traders and investors in Zhuhai. To date, Hong Kong and Macau have remained the largest and second largest sources of FDI in the city respectively. In terms of exports, Hong Kong and Macau are Zhuhai's largest and fifth largest partners respectively. Given the new circumstances under CEPA, more opportunities for economic cooperation between Hong Kong, Zhuhai and Macau will emerge.
New bridge:
The Hong Kong-Zhuhai-Macau Bridge, a spur to Greater PRD economic development, is currently at the stage of discussion. Upon completion of the bridge linking the three cities, it will only take a few ten minutes to drive from Zhuhai and Macau to Hong Kong, which is more than three hours faster than the present journey via Humen bridge. The planned bridge will significantly shorten the distance between the west bank of the Pearl River and Hong Kong. The bridge therefore will play a pivotal rule in facilitating the economic development of the Greater PRD region. It will not only give an impetus to PRD development but also drive the growth of the western part of the PRD region, paving the way for the emergence of the Greater PRD economic region. The Greater PRD region will in turn extend its reach to the ASEAN free trade zone and exert its influence on other provinces such as Guangxi, Hainan, Yunnan, Guizhou and Sichuan. The region is poised to become a multifunctional, highly open and vibrant economic region in the world.
Logistics:
Logistics is one of Zhuhai's development priorities. In the Zhuhai Bonded Zone and Harbour Industrial Zone, the logistics industry has made significant progress. More than 30 of the world's top 500 players and large warehousing enterprises have launched logistics operations in the Gaolan port area in the Harbour Industrial Zone. Under CEPA, freight sorting and logistics services have been further opened up for Hong Kong's participation and hence more opportunities are unfolding for Hong Kong industry players. Moreover, the planned Hong Kong-Zhuhai-Macau Bridge will link up Hong Kong's land transport with the Beijing-Zhuhai highway. Goods from Wuhan can expect to arrive in Hong Kong in one day. By taking the coastal highway, the journey from Hong Kong to Guangxi can be shortened to half a day. The reach of Hong Kong logistics players is significantly extended as a result. Experts project 30% and 35% increases in sea and air freight respectively for Hong Kong if industry players can extend their services to cover the western part of the PRD after completion of the Hong Kong-Zhuhai-Macau Bridge.
Tourism:
Tourism is one of Zhuhai's niche industries and a driver of the city's services sector. Similarly, in Hong Kong tourism is one of the four economic pillars. Tourism is highly developed and well managed by a sound system. Thanks to CEPA and the relaxation of visa requirements, Zhuhai's tourism market can expect to align with those of Hong Kong and Macau. There is complementarity between Zhuhai's future development direction (including leisure, resort, convention and exhibition) and that of Hong Kong and Macau. Through coordinated publicity efforts, the tourism resources of the Greater PRD region can be integrated and the image of the region encompassing Hong Kong and Zhuhai as a tourist destination can be reshaped. In May 2004, China Travel Service (Hong Kong) launched a hot spring project in Zhuhai, an indication that Zhuhai's tourism resources are attracting more Hong Kong investors.
Convention and exhibition:
Thanks to the attractive natural environment, comprehensive range of supporting services and vigorous economy, Zhuhai is an ideal city for hosting conventions and exhibitions. Zhuhai places strong emphasis on the development of this industry. The attractiveness of Zhuhai is clearly illustrated by the success of the Aviation Expo held in the city. The unique features of the Zhuhai Bonded Zone are another attraction for Hong Kong exhibition organizers to stage international trade shows in Zhuhai. In Hong Kong, the convention and exhibition industry has a long history of development. Hong Kong has a wealth of experience, extensive international exposure, strong sales networks and a high degree of professionalism in the convention and exhibition field. Under CEPA, Hong Kong companies can provide convention and exhibition services in the mainland in the form of wholly-owned operations. There is an enormous scope of development for Hong Kong and Macau companies in this sector.
Entrepot trade:
Upon completion of the Hong Kong-Zhuhai-Macau Bridge linking up the eastern and western parts of Guangdong province, Hong Kong stands to benefit from gaining easier access to Guangdong and Yunnan and even to countries like Vietnam. In other words, the large volume of trade between China and the ASEAN free trade zone may be handled through the Hong Kong International Airport.
Commerce:
To implement CEPA practically, the Zhuhai business community has launched a number of commercial property projects such as shopping streets and shopping districts capitalising on the CEPA concept. Hong Kong and Macau suppliers can offer their goods at these venues for retail. This is another opportunity for Hong Kong and Macau business people.
Airport:
The Hong Kong-Zhuhai-Macau bridge will connect the airports of Hong Kong, Shenzhen, Macau and Zhuhai. The flow of people and goods among the four airports can become better coordinated and transshipment more efficiently deployed. It will also help ease the pressure caused by the ever increasing freight volume at the Hong Kong International Airport.
Research and technology:
New- and high-technology is the leading growth area of Zhuhai, posting Rmb36 billion in annual output value, or one-third of the city's total industrial output. The Zhuhai University Park and Zhuhai New- and High-Tech Development Zone have both developed rapidly to give the city a strong technology flavour. New- and high-tech firms and scientific research organisations from Hong Kong may consider setting up operations in Zhuhai.
http://www.tdctrade.com/alert/cba-e0406p1.htm
http://www.zhuhai-trade.gov.cn/en/index-e.htm
http://www.zhuhai.gov.cn/english/
http://www.zhuhai.com.cn/english/index.asp?id=1018
How Foreign Invested Enterprises (“FIE”) Obtain Visa for its Foreign Employee and Introduction to PRC Foreigner Employment Management Regulation
Foreign Invested Enterprises established in Zhuhai may consider employ foreigners. How do they help to apply visa for its foreign employees? And what they should do when the employment relationship is terminated? The summary of the application procedure is set forth as follows:
FIE intending to employ foreigners may apply for and obtain Certificate of Permission (“Permission”) directly from Zhuhai Labour and Social Security Bureau (“Zhuhai Labour Bureau”). In order to apply for the Permission, the following documents should be submitted:
1. Articles of Association;
2. Certificates of Approval; (issued by Zhuhai Foreign Trade and Economic Cooperation Bureau);
3. Business License;
4. Capital Verification Report;
5. Employment Intent letter;
6. Resume of the foreigner to be employed;
7. Explanation of reasons for the employment;
8. Certificate qualifying the foreigner for the work;;
9. Health certificate of the foreigner to be employed;
10. Certificate of no criminal record;
11. Documents otherwise required by laws and regulation.
Once FIE obtains the approval to employ foreigners, the authorization units authorized by Ministry of Foreign Affairs will issue the Visa Notice and the Permission to FIE. FIE may subsequently send the Visa Notice and the Permission to the foreigner to be employed.
The foreigner who has obtained approval to work in China may submit the Visa Notice, the Permission and the passport to Chinese embassies or consulates for applying an occupation visa. (“Z VISA”).
FIE shall, within 15 days of the entry of the foreigner it employs, apply the Certificate of Employment for the foreigner. FIE shall submit the following documents to Zhuhai Labour Bureau:
1. Certificate of Permission;
2. Labour Contract signed between FIE and the foreigner;
3. Valid passport of the foreigner;
4. Valid visa;
5. 4 photos;
6. Proof of resident place.
The Certificate of Employment is valid only in areas designed by certificate issuing department. The foreigner who has received the Certificate of Employment shall, within 30 days after entry, apply for and obtain a residence card from Zhuhai Public Security Bureau. The term of validity of residence card can be determined according to the term of validity of the Certificate of Employment.
FIE shall sign labour contract with the foreigner in accordance with law. The term of labour contract shall not be more than 5 years at the longest. Labour contract shall terminate upon the expiration of their terms and can be renewed.
The foreigner who has prolonged their term of employment in China or changed their locations of employment or employers shall go through alteration procedures with Zhuhai Public Security Bureau within 10 days of such changes.
After termination of the labour contract between FIE and the employed foreigner, FIE shall make timely reports to Zhuhai Labour Bureau and Zhuhai Public Security Bureau, return the Certificate of Employment and residence card of the foreigner.
The employed foreigner who change its employer within the location designed by the Zhuhai Labour Bureau but still engage in the same occupation shall ask for approval from the Zhuhai Labour Bureau and go through employment alteration procedures. The foreigner who accepts jobs beyond the area designated by Zhuhai Labour Bureau or changes its employer within the area designated by Zhuhai Labour Bureau but engage in different occupation shall re-apply for the employment permission.
Within 30 days of the conclusion of each full year of employment of the foreigner, FIE shall go through procedures with Zhuhai Labour Bureau for the annual check of the Certificate of Employment on behalf of the employed foreigner. The Certificate of Employment shall become invalid automatically should FIE fails to go through these procedures within the prescribed time.
Privately-owned economic organizations and individuals are forbidden to employ foreigners. Representative Offices (“RO”) set up in China must not employ employees directly and the employed personnel must be dispatched by legally established agent. The agent instead of FIE will sign labour contract and establish the employment relationship with the foreigner.
(This article is prepared for reference only and may not be construed as legal advice. Should you have any questions and comments, you are welcome to contact the author.)
Author: Helen Yan - Attorney at Law, Member of PRC Bar Association
Tel: 0756-3229508
Mobile: 13928008926
Email: yanhailing@yahoo.com
Introduction to WFOE
WFOE is one of the foreign direct investment vehicles in China. Its 100% shareholding is owned by foreign enterprises or individuals and it negates the need for a Chinese partner. However, some industries are restricted or prohibited to be invested by foreign enterprises or individuals; some industries are required to be invested by setting up joint venture with local partners. Foreign investors shall review The Catalogue of Industries for Guiding Foreign Investment or consult with their legal counsel prior to incorporating a WFOE.
Registered and Paid-up Capital
WFOE is a limited liability company, which means, the limited liability is recognized by the amount of registered capital injected into the business. The registered capital refers to the total amount of capital registered with the Zhuhai Administrative for Industry and Commerce (“ZHAIC”), i.e. the total amount of investment that the foreign investor undertakes to contribute. The contribution can be made with convertible foreign currencies, or with machinery and equipment or with industry property rights and proprietary technology. The amount of registered capital must be in keeping with the enterprise’s operation scale and must be approved by the examination and approval authority. The time limit for the foreign investor to make the investment contributions shall be clearly indicated in both the application for the establishment of WFOE and the enterprise’s article of association. The foreign investor may contribute the investment in installments, provided that the last installment shall be made within three years from the date of the issuance of the business license. The first installment may not be less than 15% of the total amount to be contributed by the foreign investor, and shall be made within 90 days from the date of issue of the business license. While cash contribution is legally allowed to be used as operational capital, the incorporator may not withdraw the registered capital during its operating period.
Procedure for Establishing a WFOE
1. Reservation of the Proposed WFOE Name with ZHAIC
Prior to any of the following applications, the Investors shall reserve a name for its proposed WFOE with ZHAIC. The name reservation is valid for 6 months. ZHAIC requires that a proposed name and two alternative names be provided.
2. Prepare application documents and submit them to Zhuhai Foreign Trade and Economic Cooperation Bureau (“ZHTECB”) for examination and approval.
The foreign investor is required to submit the following documents to ZHTECB:
2.1 a written application for the establishment of the WFOE;
2.2 a Feasibility Study Report and the Article of Association of the proposed WFOE;
2.3 the incorporation document of the investors or in the event that the investors are foreign individuals, their identification documents;
2.4 an original bank financial credit certification;
2.5 a list of the proposed chairperson and the members of the WFOE board of directors and appointment letters;
2.6 office lease agreement;
2.7 legal representative’s registration form;
2.8 name approval certification issued by ZHAIC;
2.9 such other documents as may be required by ZHAIC.
The above mentioned documents submitted to ZHAIC must be prepared in Chinese version. In the event that any documents are prepared in English such as bank financial credit certification, Chinese translation shall accompany the English documents.
3. Obtaining Approval Certificate from ZHTECB
As for the timing of approval, approval authorities are required to make its decision within 90 days from receipt of all the documentation. However, ZHTECB is able to give its decision within 5 working days upon receiving all the required documentation.
4. Registration for Business License
The foreign investor will need to register and apply for a business license to ZHAIC within 30 days after obtaining the approval certificate.
Once the business license is issued, the WFOE is deemed to be a legal entity duly incorporated pursuant to PRC law and will have full operational rights to conduct business in China within the business scope prescribed in its Business License.
5. Registration with Other Government Authorities
Registration is also required with other government authorities such as State Taxation Bureau and Zhuhai Local Taxation Bureau, Foreign Exchange Control Bureau, Customs and so on.
(Prepared for reference purpose only, and should not be construed as legal advice)
Author: Helen Yan - Attorney at Law, Member of PRC Bar Association
Tel: 0756-3229508 Mobile: 13928008926
Email: yanhailing@yahoo.com
According to the relevant provisions of China, the foreign investments in Zhuhai can adopt the following modes: Chinese-foreign equity joint venture, Chinese-foreign contractual joint venture, wholly foreign-owned enterprise, cooperative development, compensation trade, processing and assembly, international lease, technical transfer, BOT, loan, purchase of stocks and securities and deposit in Bank of China.
(i) Chinese-foreign equity joint venture
It refers to the economic entity co-established within China by foreign companies, enterprises, other economic organizations or individuals in joint investment with Chinese companies, enterprises or other economic entities. Chinese-foreign joint venture is a limited liability company with the status of a Chinese legal person and its legal operation rights and interests are protected by Chinese laws. The either party shares the risks, debts and enjoys rights and interests according to the amount of contributions and their ratio in the total investment. In Chinese-foreign joint ventures, the investment ratio occupied by the foreign party shall not be lower than 25%.
(ii) Chinese-foreign contractual joint venture
This refers to the economic entity co-established by a foreign company, enterprise or other economic organizations according to the enterprise contract signed by both parties. And it belongs to contractual joint venture enterprise. The rights, obligations, distribution of revenues or shares of risks and debts, as well as the management mode of the enterprise, settlement ways at liquidation are all clearly specified in the cooperation contract.
(iii) Wholly foreign-owned enterprise
It refers to the economic entity established by foreign company, enterprise, other economic organization or individual solely with the capital wholly invested by foreign investors. Foreign investment enterprise has the status of a Chinese legal person and is a limited liability company; and its risks and profits are undertaken by the foreign investment enterprise.
(iv) Compensation trade
Foreign clients provide credit to sell technology or equipment on account to Chinese enterprises, or Chinese enterprises import raw materials, and the foreign clients are responsible for purchasing a certain amount of Chinese products, so that the investment of foreign investors are repaid with products in installments instead of in cash. Its mode of repayment can be in the form of direct compensation or indirect compensation, that is to repay the loans and interests of technology and equipment in installments with the products produced with the equipment and technologies imported before or with other products that foreign clients have agreed to purchase.
(v) Processing and assembly
This refers to the form in which materials and parts supplied by foreign firms are processed and assembled into products and then returned to foreign clients and then resold to the place of production, and the Chinese party charges the processing fee. In other cases, the foreign firms provide machines and equipment, which are either priced or not priced; in case they are priced, the Chinese party shall repay them with the processing fee in installments.
(vi) International lease
There are mainly three such forms as financing lease, operating lease and comprehensive lease. Financing lease refers to the form in which the leasing company pays to purchase the equipment designated by the user and then lease them to the user. Within the period of equipment use, neither party shall terminate the contract at will; the lessor retains the ownership rights of the equipment and the user has the right of use; the user is responsible for the repair and maintenance of the equipment, the lease company charges the user the price, interest and service charges etc. of the equipment during the lease term in the form of rent.
Operating lease: the lease company provides the equipment needed by the user and is responsible for the maintenance and repair of the equipment, and the user pays the rent according to the lease agreement and the equipment shall be returned when the lease period expires.
Comprehensive lease: it is a form combining lease and equity joint venture and contractual joint venture. But the lease shall be the part outside the registered capital of the joint venture company.
According to relevant provisions of China, the investment modes of investors include: cash, equipment and parts, raw materials, auxiliary materials, land for industrial use, factory building and complementary facilities, industrial property rights, technical know-how and circulating capital, etc. The ratio of the registered capital of foreign investment enterprises against the total amount of investment and time limit of contributions in installments are detailed in the following form.
Table of Minimum Registered Capital of Foreign Investment Enterprise and the Time Limit on Capital Contribution:
| Total investment |
Minimum amount of registered capital |
The year limit on the paying of registered capital (note) |
||
|
Proportion of total investment |
Amount |
|||
|
Below USD 3 million |
70% |
- |
Above USD 2 million and below USD 5 million: 1 year |
|
|
USD 3-10million |
50% |
- |
Above USD 5million and below USD 10 million: 2 year |
|
|
Among it |
below USD 4.2 million |
- |
USD. 12million |
The year limit for USD 10 million and above is to be examined and verified by approving authorities |
|
USD 10-30 million |
40% |
- |
(Note:)The first sequential contribution of any party should be no less than 15% of agreed paying amount and should be paid in within three months. |
|
|
Among it |
below USD 12.5 million |
- |
USD. 5million |
|
|
Above USD 30 million |
33.34% |
- |
||
|
Among it |
below USD 36 million |
- |
USD.12 million |
|
(i) Working institution
Zhuhai Service Center for Foreign Investment (hereinafter referred to as the "Center") was founded on April 12, 1990 and authorized by Zhuhai municipal government as an institution that combines promotion of foreign investment, joint examination and approval, joint registration, administration and service. The Center takes the expansion of the foreign economy of Zhuhai City as its goal and, in accordance with the relevant legal provisions of the People‘s Republic of China, coordinates the various relevant departments of the whole city to examine and approve projects of foreign investment and conduct joint registration of the projects so as to provide the foreign investors with a package service. Mr. Su Jiancheng, deputy director of Municipal Bureau of Foreign Trade and Economic Cooperation, concurrently assumes the post of Director of the Center, and the posts of executive deputy director and deputy director are assumed by Luo Guangzhong and Zhang Xiaojun respectively. It is staffed by a group of full-time personnel with professional knowledge and assembles the personnel of such institutions as Municipal Bureau of Foreign Trade and Economic Cooperation, Municipal Bureau of Planning and Development, Municipal Bureau of Economics and Trade, Administration of Industry and Commerce, Taxation Bureau, Administration of Exchange Control and Bureau of Finance into the same building to work jointly; subordinated to it are Department of Investment Promotion, Department of Joint Examination, Approval and Registration, Department of Project Service and Office, which are simply structured and staffed by keen-witted and capable personnel. Office building: Nanyou Hotel, Shuiwantou, Zhuhai City
Tel: 0086-756-3372472/3372478
(ii) Authority of examination and approval
1. For the projects of the non-restricted category with a total amount of investment below USD30 million, after the Department of Joint Examination and Approval reviews them, the Municipal Bureau of Foreign Trade and Economic Cooperation and Municipal Bureau of Planning and Development will grant approvals respectively.
2. For the projects of the non-restricted category to be established in Zhuhai High-tech Industrial Zone, Zhuhai Free Trade Zone and Harbor Industrial Zone with a total amount of investment below USD30 million, the relevant districts can examine and approve them.
3. For the projects of the non-restricted category to be established in Doumen District, Xiangzhou District and other districts with a total amount of investment below USD15 million, the relevant districts and function zones can examine and approve them.
4. For the projects with a total amount of investment over USD30 million； the projects involving import/export licenses and quota； the projects that belong to the restricted categories in the "Catalogue for the Guidance of Industries for Foreign Investment", the Department of Joint Examination and Approval shall conduct joint examination on them and then submit them to the relevant departments of the nation for examination and approval.
(iii) Procedures
To establish a foreign investment enterprise, the concerned party shall submit the following documents to the Department of Joint Examination and Approval:
The materials that must be submitted to apply for establishing foreign-capital enterprise
The materials that must be submitted to apply for establishing Chinese-foreign equity joint ventures
The materials that must be submitted to apply for establishing Chinese-foreign contractual ventures
All the above documents shall be submitted in triplicate to the Department of Joint Examination and Approval or the departments of foreign trade and economic cooperation of related county, district (administration zone) (only for the projects within the authorities of examination and approval).
The authority of examination and approval shall decide whether to approve it or not within 10 days after the relevant documents have been in receipt. Generally, as long as the documents are complete, it can give an official reply within five working days.
After the foreign investment enterprise has obtained approval and received an approval certificate, it shall go to the department of comprehensive service of the center to go through such formalities as registration, obtaining business license, having an official seal carved, processing the registration of foreign exchange and opening of an account of foreign exchange, taxation registration and application for labor force.
All of the above formalities can be dealt with in the "Center" and the handling process is shown in the following diagram:
Investor
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Go to the integrated Center for examining and approval of the application； The project is approved by the Planning Committee of the Municipal Government: Company constitution, contract (application form) approval and license issued by the Foreign Economy Relations and Trade Committee on behalf of the Municipal Government
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Go to the integrated Center for the registration procedures including: license certificate issued by the Industry and Commerce Bureau of the Municipality； the official seal engraving by the Public Security Bureau if the Municipality； the transaction of the organization code book by the Technical Inspection Bureau； the transaction if each registration procedure by the National Taxation Local Taxation Bureau, Foreign Currency Control Bureau, Finance Bureau, Statistic Bureau, the Municipal Government(All the above procedures can be completed inside the Center)
Guidance of Industries for Foreign Investment:
If you want the catalogues for the Guidance of Industries for Foreign Investment, please click: http://www.zhuhai.com.cn/english/index.asp?id=1014
For more preferential policies for investment, please click:
http://www.zhuhai.gov.cn/english/361414969608110080/20030625/1036944.htm...
http://www.zhuhai.gov.cn/english/361413870096482304/index.html
Zhuhai State High-tech Zone, Zhuhai Scientific Innovation Coast (Innovation Coast), serves as an important arena for the high-tech projects attracting talents. It focuses on the transformation of technological achievements and the implantation of modern management concepts for the purpose of promoting the commercialization, industrialization and globalization of new technology. It also works on introducing technological achievement s and technological risk investment from home and abroad to optimize the investment environment and to turn out outstanding enterprises and entrepreneurs.
The Innovation Coast is located beside the beautiful Tangjia Bay and along Gangwan Road, neighboring Zhongshan University Zhuhai branch.water and electricity supply facilities. Land, production buildings, office buildings and dormitories are all available to the investors.
The base aims at 4 key industries of Guangdong Province including electronic information, biological technology, optical, mechanical &electrical integration and development of new materials. Currently a number of proprietary high-tech projects have joined the base including human gene antibody warehouse, fiber communication parts, general power industry and electronics and new ceramic base boards.
The Innovation Coast sincerely welcomes the visit of investors and entrepreneurs from home and abroad.
Address：Dongan, Jinding Zhuhai, China
Post Code: 519080
Tel：0756-3385212
Fax：0756-3385213
Association of Foreign Investment Enterprises
Founded in August 1989, Zhuhai Association of Foreign Investment Enterprises (hereinafter referred to as the "Association") now has more than 1,800 direct members and two subordinating branches (Xiangzhou Branch and Doumen Branch). It is a municipal level nonprofit social group jointly formed by foreign investment enterprises, investment enterprises by Hong Kong, Macao and Taiwan compatriots and overseas Chinese, institutions engaged in the service work for foreign investment and investment institutions run by foreign enterprises within Zhuhai. The motto of the Association is: abide by the constitution of the People's Republic of China, carry out and implement the laws, regulations and policies of the nation on opening to the outside world and encouraging foreign investment, strive to serve the members and the investors and safeguard the legal rights and interests of the members; report to the relevant government departments the comments and requests of the members and investors, promote the constant improvement of investment environment; enhance the contacts, understanding and cooperation among the Chinese and foreign parties of the member enterprises, members and governmental institutions and between members; exchange information and experience; encourage the members to play active roles in the Chinese modernization undertaking and international economic cooperation.
The leading organ of the Association is the Board of Directors. Mr. Su Jiancheng, Deputy Director of the Municipal Bureau of Foreign Trade and Economic Cooperation and Director of Zhuhai Service Center for Foreign Investment assumes the post of Chairman of this association. The secretarial division is the administrative body of the Association. It serves member enterprises and is responsible for the affairs of contacts.
Address: No. 19, East Renmin Road, Xiangzhou, Zhuhai (within Municipal Bureau of Foreign Trade and Economic Cooperation) Postal code: 519000
Tel: 222648 2111533 Fax: 2118348
E-mail:zhaefi@21cn.com