Over the past few decades, China has consistently ranked among the largest destinations for foreign direct investment globally. From the early days when foreign investors flocked to set up processing factories for clothing, toys, etc., to the current focus on mechanical and electrical products, high-tech industries, and modern service sectors, foreign investment in China has achieved a remarkable upgrade from low-end to high-end industries. Undoubtedly, China has now become one of the most attractive countries for foreign direct investment in the world.
I have been engaged in foreign investment consulting for 18 years. During this period, I have assisted hundreds of foreign investors in successfully establishing companies and representative offices across China. Moreover, I have provided comprehensive professional legal consultation services to foreign investors, covering aspects such as company establishment, financial planning, and visa applications.
Regarding the establishment of foreign-funded companies, the following key points deserve special attention:
1. Location Decision: The first and foremost task is to determine the location where the company will be established. The vast majority of foreign-invested companies prefer cities with the most developed economies in China, such as Shanghai, Beijing, Guangzhou, and Shenzhen. Among them, Shanghai stands out due to its unique economic status, attracting nearly 40% of foreign-invested companies. As the economic center of China, Shanghai plays a pivotal role in logistics, trade, finance, and other fields.
2. Special Permit Consideration: Secondly, it is necessary to determine whether a special permit is required based on the company's business scope. For example, businesses in specific fields such as food, alcohol, dangerous goods, and medical devices must apply for corresponding special certificates in accordance with the law.
3. Office Space Planning: Thirdly, a decision needs to be made regarding whether to lease a physical office space. Some industries, such as service companies, can use virtual offices for company registration. However, for certain industries, such as export trading enterprises, if they plan to apply for export tax rebates, they must have a physical office premises.
4. Work Visa Planning: Finally, it is necessary to consider whether to apply for a work visa. Generally speaking, applicants for work visas are required to have a bachelor's degree and a clean criminal record, among other conditions.
When foreign investors make investments in China, they are in urgent need of professional assistance in handling the company establishment process, gaining in-depth understanding of financial and tax issues, and properly dealing with visa-related matters. These areas involve numerous intricate details, and only professionals with expertise and rich experience can ensure that all matters are handled appropriately.
