To facilitate people who want to invest and set up company in Hubei, here is an introduction of Types of business presence in China:





Hong Kong Holding Company. Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise (WFOE); Representative Office ; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and





Wholly Foreign Owned Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE. No. minimum registered capital is required for WFOEs with scope of business of consulting, Trading, retailing, information technology etc. in China. There are minimum registered capital still required for some industries for instance: Banking, Forwarding etc Since China still maintains foreign currency control policy, it's still advisable to choose registered capital within RMB 100,000 ~ RMB 500,000 as the minimum registered capital. Companies can now determine how much capital will be required to maintain their operations and must simply ensure that they meet those targets within a period of 10 years.





Representative Office (RO) is a Liaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.





Joint Venture (JV) is a Limited liability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.





Since March 1, 2010, Measures of Establishment of Foreign Invested Partnership Enterprises (FIPE) in China is taking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Hubei, 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 (MainlandChina 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 Hubei 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 Hubei China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization , Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice , negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Hubei China, drafting privacy policies and structuring commercial transactions





TCBC will manage all aspects of incorporation to get you a business license in Hubei China. We offer a range of company formation services including helping you to set up:





-Wholly Foreign Owned Enterprises (WFOE )









-Joint Ventures (Equity/Co-operative)





-Foreign Invested Partnership Enterprises (FIPE)





















Please visit: http://www.tommyconsulting.com/CorporateFormation.html





Email: tomlee@tommyconsulting.com, Skype: tomleeli





WhatSapp/Wechat/Cell Phone: +86 18926401128





Hubei, the birthplace of modern industry in China, is one of the important old industrial bases and one of the three largest steel bases in our country. It is also the largest production base of medium, heavy, sheet plates and special steel, the second largest production base of automobiles and the largest production base of medium trucks, the largest production base of heavy machine tools and packaging machinery, the biggest hydraulic power base, and the largest production base of Join-alkali, agricultural chemicals, phosphorus, salt chemical industry and striate gypsum. It is also a national photoelectron information industrial base in China and one of modernized traditional Chinese medicine bases and important textile bases. It has established a distinctive industrial system, forming a pattern with automobile, steel and photoelectron information as advantaged industry.With the construction and development over 50 years, the mechanism and automobile industry in Hubei province has established the industrial foundation with “one leading industry and two belts”. “One leading industry” refers to take the automobile industry as the leading role, building a wide range of 13 industries with rich strength such as machine tools, electrical appliances, instruments and meters, general petrochemical machinery, heavy mining machinery, food packaging machinery, general basic parts, engineering machinery, agricultural machinery, internal combustion engine, cultural office equipment, civil machinery and so on. “Two belts” refers to the two centralized belts, including an automobile industry belts based on the Dongfeng Motor Company in Shiyan, Xiangfan and Wuhan and a large technical equipment belt based on Yichang, Jinzhou, Wuhan and Huangshi, which brought about an industry pattern supported by a large number of big corporations and companies such as Dongfeng Motor Corporation, Dongfeng Peugeot Automobile Company, Tri-ring Group Corporation, Wuhan Kaidi Electric Power Co., Ltd, Wuhan Boiler Co., Ltd, China Chang Jiang Energy Corp.(Group), China Shipbuilding Industry Corporation Wuchang Shipyard and so on. Dongfeng Motor Corporation has realized multinational reorganization with Nissan Motor Co.，Ltd, enhanced operation with PSA Peugeot Citroen and expanded operation with Honda, which marked that Dongfeng Motor Corporation has stepped into the queue of international big companies; after reorganization with the automobile corporations in Hubei province, Tri-ring Group Corporation has further enhanced its strength. As one of the three big production bases for manufacturing automobile components and parts, Hubei Province has achieved a productivity of 800,000 entire vehicles. On the whole, it has formed a product structure which pays equal attention to “limousine, heavy, medium, light and special” and the wide range of vehicle type. Due to the rapid development of entire vehicles, the components and parts industry in Hubei has strengthened day by day. At present, there are more than 700 components and parts enterprises in Hubei (of which there are more than 310 enterprises above the scale), and the annual capacity to provide the auxiliary items exceeds 600,000 vehicles. The industrial output accomplished by the top 10 big companies in this industry take up more than 60% of the total industrial output accomplished by the mechanism and automobile industry in Hubei.The information industry in Hubei Province maintained comprehensive, rapid and effective development. The scale of manufacturing industry grew in duplication. The government affairs, enterprises and social informatization have been push forward in an all round way. The informatization level has improved remarkably, and the wireless infrastructure construction is highly effective. Supervision competence is strengthened time and again. The function and status of information industry in the national economy and social development has been reinforced at large, which lays a solid foundation for the sustainable development of “10th Five-year Plan”. As a result of the construction and development, the information industry in Hubei Province has formed a development pattern featuring optical communication, mobile communication, laser, display, chemosynthetic foil electronic material and software industry. The scale of optical fibers and cables industry is in the first place at home and the third place in the world, and the research and development as well as the production scale of the optical communication come out at the top in China; the output of micro-midi broadcasting station and mobile base station antenna system is on top at home, the same with the production scale of laser; production of mobile phone, display and air condition respectively has formed a scale of 10,000,000 sets; the production scale of chemosynthetic foil electronic material is also on top at home with an output of 50,000,000 square meters; by the same token, the software industry provided with domestic considerable foundation and strength is in full flourish. As to the industry structure of the information industry in Hubei Province, it has changed from the single manufacturing industry in the past to the modern information industry integrated by manufacturing industry, software industry and information service industry. The product structure with dominant investment class products in the past has entered into an amenable environment in which the products of investment class, consumption class and foundation class are developed side by side. By means of developing the photoelectron information and organizing and optimizing some essential elements including industry, qualified personnel and resources, Optical Valley of China (Wuhan) has rapidly developed into the biggest photoelectron information industry base in China.Hubei Province, one of the largest provinces in China in respect of light industry, has established a self-contained light industry system with a wide range of products, including 22 categories and more than 40 industries such as subsidiary foodstuff processing, foodstuff manufacturing, drink, crude salt, leather, cabinetmaking, paper making and paper products, stationery and sporting goods, chemical industry concerned with products for daily use, plastics, household electrical appliances, illuminating electrical appliances, articles of artistic industry and so on. The major light industries in Hubei Province, including foodstuff and drink, household electrical appliances, paper making, plastics, crude salt and so on, which is playing an important role at home and provided with relatively strong comparative advantage. The subsidiary foodstuff processing industry ranks the 10th place in China the foodstuff manufacturing industry ranks 12th, drink manufacturing ranks 8th, paper making and paper products industry ranks 10th, plastics industry ranks 11th, and household electrical appliances manufacturing industry ranks 10th. Moreover, there are many national renowned native enterprises concerning light industry in Hubei, such as Jingshan Light Machinery Group Co., Ltd., Angel Yeast Co., Ltd., Kaile Science and Technology Co., Ltd., Hubei Yuli Abrasive Belt Co., Ltd., Hubei Baiyunbian Wine Co. Ltd., Zhijiang Wine Co., Ltd, Jing Brand Co. Ltd. and so on. Meanwhile, Hubei Province is provided with a large number of Chinese well-known brand products, including “Kinglong” Beer, “SLEK” cosmetics, “Dongbei” refrigerator compressor, “President” juice, “Jinhuang” jewelry, “Lianle” mattress, “Daqiao” chicken essence, “Jinchen” toothbrush, “Jinlan” jewelry and so on. With more open up to the outside world and improvement on the investment environment, a large number of national and international renowned enterprises concerning light industry have settled in Hubei, including Coca-Cola, Pepsi, Philips, Budweiser, Red Bull Drink, Hair, Little Swan, China Resources Power, Tsingtao Brewery, Wahaha, Huiyuan, TCL, Nongfu-shanquan and so on, which have further strengthened the Hubei light industry.The medical industry, the new point of growth for the economic development in Hubei Province, has formed a medical industry system with a wide range of products including bio-medicine, chemosynthetic pharmaceutical products and preparations, Chinese patent medicines, traditional Chinese medicines prepared in ready-to-use forms, healthful materials, medical appliances, medicament-making devices, medicine packaging and so on, and it is provided with strong strength on manufacture, study and research and collaborative development on traditional medicine, modern biotechnology and new medicine. At present, it is growing into the important pillar industry concerning the new pattern industrialization in Hubei. In recent years, the medicine manufacturing enterprises in Hubei developed rapidly with large quantities of products and process engineering being ahead in China, and the output and export quantum of vitamin B complex separately takes up 60% and 50% of the country. Among which: the manufacturing technique for VB1 has achieved the national advanced level; the process engineering for new fungus VB2 has reached the international advanced level, its output takes up 98% of the country and productivity ranks No.1 in China and No.3 in the world; the amino acid series are provided with 16 classes of products, among which 3 products can be substitutes for imported goods and has supplied a gap for the country; productivity of Brufen ranks No.1 in china and No.4 in the world. At present, the number of fruits of the underway project and preparative industrialization on biotechnology and new medicine have exceeded 200; among which there are 65 registered number of approval for bio-medical products, including 1 kind of the national class I new medicines, 5 kinds of the national class II new medicines, and 20 kinds of national class III and IV new medicines; researches on some fields such as functional gene, artificial growth factor, biological for human and animals, thrombolysis enzyme TPA and bio-engineering bacterin has achieved the national and international advanced level. In addition, a medicine industry base involving four classes, namely, unadulterated traditional Chinese medicinal materials planting, medicine manufacturing, medicine manufacturing for special purpose and medical research has been formed to a large extent.Petrochemical Industry, one of the pillar industries among the industries in Hubei Province, after the development over years, has formed a manufacturing and construction system with large and middle scale enterprises as its backbone, petroleum extraction, petroleum refining, chemical industry for agricultural use, basic chemical raw materials and rubber processing as the leading role, and chemical industry research, education, design, geological exploration and installation and construction as the supporting role. At present, there are more than 600 oil enterprises, petrochemical enterprises and chemical engineering enterprises above the scale, including 25 large-scaled enterprises and 50 enterprises in middle-scale. Petrochemical industry has formed numbers of characteristic enterprises after reconstructing the traditional industries by high and new-technology industries: Sinopec Wuhan Co., Ltd and Sinopec Jinmen Co., Ltd are the leading enterprises concerning crude processing in the central area in China; Sinopec Jianghan petroleum administration is the only enterprise for petroleum extraction in the central area in China; Hubei Shuanghuan Chemical Group Co., Ltd. is the largest enterprise for producing Join-alkali in Asia; Hubei Yichang Chemical Group Co., Ltd. is an important comprehensive enterprise concerning phosphorus industry, salt industry and fertilizer manufacturing; Sinopec Hubei Fertilizer Co., Ltd. is among the enterprises taking the lead in utilizing the introduced technique to establish large scale enterprises concerning fertilizer manufacturing at home; Shalongda Co. Ltd. is the largest enterprise for manufacturing agricultural chemicals in China; Hubei Chuyuan Fine Chemical Industry Group Co. Ltd. is the largest enterprise for producing dyestuff and dyestuff intermediates in China; Wuhan Gehua Group Co. Ltd. is one of the earliest large scale enterprises for manufacturing chlorine alkali and polyvinyl chloride in China; Yichang Xingfa Group Co. Ltd. is the largest enterprise for producing yellow phosphorus and phosphorus products in China; Hubei Yangfeng Group Co. Ltd. is one of the largest enterprises for manufacturing phosphate and compound fertilizer; Wuhan Youji Industrial Co.，Ltd. is the biggest enterprise for producing food additive such as benzyl chloride and sodium benzoate in Asia. Some other distinctive enterprises with large industrial scale in our province are also included.The textile industry, a traditional pillar industry in Hubei Province, is also an important base for Chinese textile industry. At present, it has formed a relatively complete industry system including cotton textile, wool textile, gunny textile, dyeing and finishing, knitting, color weave, silk, chemical fiber, clothes, shoes and caps and textile machinery. The textile industry in Hubei has achieved a spinning productivity of 6,330,000 spindles, the weaving capacity for manufacturing fabric machine achieved 66,300 sets and the capacity for making clothes achieved 1.5 billion pieces (suits). The gross industrial output value accomplished by the enterprises above the scale has achieved RMB 43.252 billion, and the output of main products including yarn, cloth and clothes has respectively achieved 817,800 tons, 1.869 billion meters and 0.171 billion pieces. By the end of 2011, the textile industry in Hubei will realize a productivity of 500,000 tons with chemical fiber and 10,000,000 spindles with cotton textile including 7,500,000 spindles with advanced spinning equipment; fabric machine exceeding 100,000 sets including 40,000 sets with shuttleless loom; 0.6 billion meters with dyeing and finishing outside material in medium and top grade; 80,000 tons with cotton knitwear consumption in yarn; 2.5 billion pieces/suits with clothes. The proportion of advanced equipment in the all industries will exceed 60%. At the same time, sales revenue will achieve RMB 100 billion and the added value will touch RMB 28 billion. The earned foreign currency by exporting goods will achieve 1.5 billion dollar and the profit payments and tax turnover will touch RMB 5 billion.