Why Shanghai
China’s commercial and financial centre, Shanghai, once languished as the Chinese economy was closed to the outside world. The economy further suffered on account of political turmoil.
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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.
Shanghai’s GDP is US$256.3 billion, equivalent to half the size of 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 new financial centre, built from scratch in the new district of Pudong.
Each year, more foreign investment flows into Shanghai alone than to any other developing country.
By 2020, Shanghai’s economy is expected to expand five-fold, making it bigger than New York in 1997, the richest economic region in the world.
Core Sectors: The popular six pillar industries of Shanghai include the following:
• Electronics and Information technology
• Auto making
• Power and large-scale electromechanical equipment
• Petrochemicals
• High-grade steel
• Biopharmaceutical products
Shanghai has long been a major textile manufacturer, producing material for China’s domestic fashion industry.
| Demographics Population: 22.21 million Ethnic groups: Han Chinese make up the majority of China’s population (91.9%). Zhuang, Uygur, Hui, Yi, Tibetan, Miao, Manchu, Mongol, Buyi, Korean, and other nationalities make up only 8.1%. Religion: Taomism, Buddhism, Islam, Christianity Languages: Mandarin or Shanghaihua, English |
| Indian Companies in Shanghai IT & BPO Sector: INFOSYS, TCS, Wipro, Satyam, Reliance Power, HCL Technologies, MphasiS, NIIT, etc. Banking Sector: Canara Bank. ICICI, Punjab National Bank ,State Bank of India, Shanghai Branch, Union Bank of India, Axis Bank Ltd, etc. PSUs: National Aviation Company of India Ltd (Air India), BEML Overseas Office, Bharat Heavy Electricals Ltd (BHEL)-Shanghai Representative Office, Engineers India Ltd. (EIL), etc. Engineering & Automobile Sector: Ashok Leyland Ltd., Adani Power Limited, Bry-Air (Asia) Pvt Ltd, Darbar Auto Spare Parts Co., Essar Global, Larsen & Toubro Ltd, Reliance Infrastructure Ltd., etc. Iron & Steel: Bralco Steel Processing(Shanghai) Co Ltd, Jindal Stainless Limited, Tata Steel Asia (Hong Kong) Limited. Pharmaceutical Sector: Aurobindo Pharma, Amol Biotech Limited, Kunshan Rotam Pharmaceutical Co Ltd (Dr. Reddy’s Lab), Sun Pharmaceutical Industries Ltd Textile: 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 you with local laws and regulations on the registering and functioning of a business.
Here are a few steps on registering a business:
Step 1. Obtain an application from the Shanghai Administration of Industry and Commerce to register a Foreign Investment Enterprise.
Step 2. Submit the application and wait for approval on the company name selected by you.
Step 3. Draft the Articles of Incorporation for your business.
Step 4. Submit Articles of Incorporation along with the approval on comapny name to the Shanghai Administration of Industry and Commerce and wait for a certificate of approval on your Articles of Incorporation.
Step 5. Obtain a bank reference from your country of origin to prove your financial credibility.
Step 6. 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 under.
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 and real estate development and pharmaceuticals
and chemicals.
Resources:
Shanghai Foreign Investment Service Centre (SFISC) http://www.sfisc.com/en/fzlc.asp
The organisation, founded by the Government of Shanghai Municipality, provides management consulting, public relation consulting, VC/PE advisory service, etc.
More links:
http://www.shanghai.gov.cn/shanghai/node23919/index.html
http://www.investment.gov.cn/investment/english.jsp
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