Scope & Setting Up a Business in Shanghai China
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| Skyline - Shanghai, China |
Shanghai - Financial and Commercial Center
Shanghai is the China's commercial and financial center. Shanghai, once languished as the Chinese economy was closed to the outside world. The economy further suffered on account of political turmoil.
Shanghai is the China's commercial and financial center. Shanghai, once languished as the Chinese economy was closed to the outside world. The economy further suffered on account of political turmoil.
However, today more than a decade since the country opened up its market to the west and the rest of the world in the 1980's. Shanghai has transformed as a global city.
Shanghai's GDP is more than USD 260 Billion , equivalent to the half the size fo the entire economy of India. It houses more than 500 multinational companies, ranging from General Motors to Volkswagen.
The city has, in fact, become one of the leading financial sectors in East Asia, with major western banks flocking to its financial center, build from scratch in the new district of Pudong. Each year, more foreign investments flows into Shanghai alone than to any other developing country.
In 2020, Shanghai's economy is expected to expand five-fold, making it bigger than New York, the richest financial economic region in the world.
Core Sectors of Growth
The popular six pillar industries of Shanghai include the following:
- Electronics and Information Technology
- Auto Industry
- Petrochemicals
- High grade steel
- Bio Pharmaceutical products
- Power and Electromechanical equipments
Shanghai has long been a major textile manufacturer, producing materials for China's domestic fashion industry.
Scope for Indian Business
The domestic market of Shanghai offers huge investment scope to Indian companies in sectors such as pharmaceuticals, machineries and engineering products. In return, India offers opportunity for shanghainese investors in sectors like Information Technology, manufacturing, urban planning, real estate development and pharmaceuticals and chemicals.
Indian Companies in Shanghai
IT & BPO Sector:
INFOSYS, TCS, Wipro, Tech Mahindra, Reliance power, HCL Technologies, Mphasis, NIIT, etc.
Banking Sector:
Canara bank, ICICI, Punjab National Bank, State Bank of India, Union Bank of India, Axis Bank , etc.
PSU's:
National Aviation Company of India, BEML Overseas Office, BHEL, Engineers India Ltd, etc
Engineering & Automobile Sector:
Ashok Leyland Ltd, Adani Power Ltd, Bry-Air Pvt Ltd, Darbar Auto Spare Parts Co., Essar Global, Larsen & Toubro Ltd, Reliance Infra Ltd., etc.
Iron & Steel Sector:
Bralco Steel Processing (Shanghai) co ltd, Jindal Stainless Ltd, Tata Steel Asia (Hong kong) Ltd., etc.
Pharmaceuticals Sector:
Aurobindo Pharma, Amol Biotech Ltd, Kunshan Rotam Pharmaceuticals Co Ltd, Sun Pharma, etc.
Textile Sector:
India Grasim Industries Ltd, Raymond Ltd, etc.
How to Start
First, determine the type of business you want to start. Next, find a legal representative, who can help in with local laws and regulations on the registering and functioning of a business.
Few steps on registering a biz:
How to Start
First, determine the type of business you want to start. Next, find a legal representative, who can help in with local laws and regulations on the registering and functioning of a business.
Few steps on registering a biz:
- Obtain an application from the Shanghai Administration of Industry and Commerce to register a Foreign Investment Enterprise
- Submit the application and wait for approval on the company name selected by you.
- Draft the Articles of Incorporation for your business
- Submit Articles of Incorporation along with the approval on company name to the Shanghai Administration of Industry and Commerce and wait for a certificate of approval on your Articles of Incorporation.
- Obtain a bank reference from your country of origin to prove your financial credibility.
- Submit all documents gathered from the previous steps to the Shanghai Administration of Industry and Commerce.
Post submission of the documents you will receive a certificate of business registration, which will contain a unique company number for you to operate.
Resources:
Shanghai Foreign Investment Service Center (SFISC)
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