Investment Ways for Hong Kong Investors Investing in Mainland China

 

1.  Hong Kong individual set up a self-employed enterprise, to be a individual businessman.

2.  Register a China Company, to be the sole shareholder of a wholly foreign owned enterprise.This type of enterprise is equivalent to Hong Kong-Invested Enterprise.

3.  Hong Kong investors cooperate with China domestic companys, register a Equity Joint Venture (EJV) or a Cooperative Joint Venture (CJV).

 

This articles provide details on Hong Kong Invested Enterprise Registration

 

Concept of HK Invested Enterprise

 

Hong Kong Invested Enterprise is a limited liability company set up in Chinese territory with all the register capital comes from Hong Kong investors. Hong Kong investors include Hong Kong Company, individuals or other foreign economic organizations. HK Invested Enterprise is one form of foreign invested enterprise.

 

General Development Situation of HK Invested Enterprise

 

HK Invested Enterprise account for 72% of all foreign funded enterprises in Pearl River Delta.HK remains the No. 1 source of foreign direct investment for Guangdong province.The manufaturing set up by Hong Kong investors has a vast size in Guangdong province.The partnership between Guangdong and Hong Kong is deep and wide.Hong Kong Company expand business sharply by using the abundant cheap labour and land cost in mainland China.The model of “Front Shop, Back Factory” creat a strong export-oriented manufacturing.There are half enterprises do not set up a representative office or a factory in Hong Kong. Hong Kong is a source of capital.The shop and factory are all set up in nine large cities of Pearl River Delta.Howerev the enterprise still can make use of the service in Hong Kong with the help of advanced communication network and and convinience of custom clearance, for example, import and export service, logistics, customer relationship, retail and wholesale, etc.The boundary between foreign invested enterprise and domestic enterprise become blurred.

 

Required Documents for HK Invested Enterprise Formation

 

1.  2x Original Certificate of Incorporations, Articles of Incorporation of Hong Kong Company notarized by HK lawyer.For individual investor: 2x original HK ID copies of Investors need be notarized by by HK lawyer.

2.  2x Original Bank Reference Letters from HK investor’s bank (declare a good standing).

3.  The latest annual audit report copy of Investor Company provided by a Certified Public Accountant (CPA) (For HK Company established over one year)

4.  Certificate of registered address: 2x original leasing contracts, 2x copies of house property certificate. (The lessee should be acted by legal representative or investor. The area is required no less than 30 ㎡ and for commercial use only with more than one year’s rent and the lease contract should be endorsed by local Housing Management Authority)

5.  ID or passport copy and 4 photos (2 inches size) of legal representative

6.  ID or passport copy of directors, supervisors and managers

7.  Appointment letter for legal representative, directors, supervisors and managers

8.  Letter of authorization for service of legal documents

9.   Other relevant documents and certificates;

 

Processing Time for HK Invested Enterprise

 

1. Service enterprise: 50-70 working days

2. Trading enterprise: 50-80 working days  

3. Manufacturing enterprise: 50-70 working days (the time of approval papers application from the fire & environmental protection bureaus is not included)  

 

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