How to invest in Zhuhai

Modes of Investment in Zhuhai

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:

The Examination, Approval and Registration of Projects

(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
↓
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
↓
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 Scientific Innovation Coast

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

Community of Foreign Investment Enterprises

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