Shanghai Pilot Free Trade Zone Policy Explanation
Operations at the new China (Shanghai) Pilot Free Trade Zone (FTZ) started on Sunday, September 29, as the world’s second-largest economy looks for new ways of reducing government intervention and opening itself more widely to foreign trade and investment, according to state media.
Located in the outskirts of Shanghai, the 28.78 -square-kilometer (11-square-mile) FTZ covers four existing ‘bonded zones’ in the eastern Chinese megacity, including the Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and the Pudong Airport Comprehensive Free Trade Zone. It is believed it may eventually expand to cover the entire Pudong district which covers 1,210.4 sq km of land.
According to the policy summarizing of FTZ by Elite Stage China business legal team, following is the elaboration of main policy, company registration, virtual address of registration, detailed functions and etc. Learn more information, you can contact Elite Stage China.
1. Geographical advantages of FTZ, Located in port area, near the exit of Yangtz River and Pu Dong international airport, deep seawater port. This advantages decided this area’s got a very strong logistics transportation systems.
2. Bonded policy have brought advantages like products entry without customs duties or import linkage tax, tax lagging, inconformity settlement of foreign exchange capital and product flow.
3. Associated industries restrictions are eased. Restrictions on trade as well as 18 service sectors ranging from finance and shipping to cultural services would be eased.
4. Free access to social media. Foreign companies will be allowed to produce and sell video games as long as the content passes censorship. Furthermore, they can establish call centers, provide Internet information and software technology services.
5. Custom clearance, Offsite custom clearance, no time limits for cancellation, trade settlement with US dollars, cargo transshipment, logistics, domestic trading.
6. Financial and foreign exchange policy, Global offshore financial business ,trans boundary CNY business and loosen regulation policy of foreign exchange. Foreign exchange cancellation is not implemented in the zones and foreign exchange values can be fully retained by the enterprises. The flexible and convenient foreign exchange policy is adopted according to Administrative Measures on Foreign Exchange in Bonded Supervision Area.
Shanghai Test area of Free Trade Zone Liberalization Measures
Audit of financial statements
The objective of an audit of financial statements is to enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial framework.
We can provide the service of giving an independent opinion on a set of financial statements. The audit can bring various advantages to the company and shareholders.
Our audit and assurance group provides assurance on the financial performance and operations of your business. We can also help your business improve its external financial reporting and adapt to new regulatory requirements, that is, International Financial Reporting Standards (IFRS).
Advantages of the audit include：
- The audited company can benefit from professional accountants reviewing the accounts and system as part of the audit.
- The sale of the business or the negotiation of loan or overdraft facilities may be facilitated if the firm is able to produce audited accounts.
- An audit on behalf of a ‘sleeping partner’ is useful since generally such a person will have little other means of checking the accounts of the business or confirming the share of profits due to him or her.
Do I Need a Visa?
(1) According to bilateral agreements, citizens of some countries List of Agreements on Mutual Visa Exemption between the P.R. China and Foreign Countries holding appropriate passports may enter China without a visa provided that their stay in China shall not exceed 30 days from the date of entry into China. While in China, they should apply to the department concerned for the extension of the duration of stay in advance if they want to stay longer.
(2) Citizens of Singapore, Brunei and Japan holding ordinary passports may enter China without a visa through the ports of entry open to foreigners provided that they come to China for tourism, family visit, business or transit, and intend to stay in China for no more than 15 days. However, the following personnel of these three countries must apply for a visa in advance if:
- They are holders of ordinary passports, and come to China for tourism, family visit or business, and intend to stay in China for more than 15 days
- They are holders of ordinary passports, and come to China for study, employment, permanent residence or on a news reporting mission
- They are holders of diplomatic and service(official) passports
(3) Foreigners holding ordinary passports of the countries having diplomatic relations with China and on a tour to Hong Kong or Macao, and participating in group tours to the Zhu Jiang River (Pearl River) Delta Area for a stay of less than six days organized by the travel services legally registered in Hong Kong or Macao shall not need to apply for a visa. The Zhu Jiang River (Pearl River) Delta Area refers to the administrative area of the 10 cities below: Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Zhongshan, Jiangmen, Zhaoqing, Huizhou and Shantou.
(4) Foreigners who have confirmed onward tickets and seats on international flights and directly transit through China and stay for no more than 24 hours within the airport boundaries shall not need to apply for a transit visa.
(5) No visa is required for citizens of the following 20 countries, who transit through China via Shanghai within 48 hours, no matter what types of passport they may hold: Republic of Korea, the United States of America, Canada, Australia, New Zealand, and the Schengen states — Germany, France, Austria, Sweden, Denmark, Norway, Finland, Iceland, the Netherlands, Belgium, Luxemburg, Spain, Portugal, Greece and Italy.
(6) Citizens holding ordinary passports of the following 21 countries and in group tours to Hainan Province for a stay of no more than 15 days organized by the international travel services approved by the National Tourism Administration of China and registered in Hainan Province shall not need to apply for a visa:
Malaysia, Thailand, the Philippines, Indonesia, the UK, France, Austria, Italy, Switzerland, Sweden, Spain, the Netherlands, the United States of America, Canada, Australia, New Zealand, Finland, Denmark, Norway, Ukraine and Kazakstan .
Citizens holding ordinary passports of the following 3 countries and in group tours to Hainan Province for a stay of no more than 21 days organized by the international travel services approved by the National Tourism Administration of China and registered in Hainan Province shall not need to apply for a visa: Republic of Korea, Germany and Russia.
(7) Part of the personnel of foreign airlines offices resident in China and crew members on international flight and trains are exempted from visa requirements or entitled to simplified visa application procedures in accordance with the agreements between the Chinese Government and the governments of their respective countries.
Except for the foreign citizens mentioned-above, all other foreigners shall have to apply for a visa in advance.
Agency bookkeeping service
Have you ever encountered that inaccurate accounting information caused by change of accounting personnel?
Same expenses have been put into different accounts?
How to solve these questions?
A good accounting system is the basic for accurate accounting information.
We could assist you in:
- Collect all original accounting material from you or your designated person, i.e. invoices, reimbursement form, inventory sheet, fixed assets sheet, etc
- Based on the material collected, to generate accounting documents and migrate into our King Dee, UDIFA or MYOB system
- Generate all sub-ledgers, general ledgers and make monthly books
- Prepare monthly or annual statutory accounting reports, i.e. balance sheet, profit and loss, bank reconciliation report, expense reports, cost reports, etc
- Prepare internal reports based on your requirements.
Chapter II Trade Union Organizations
Article 9 Trade union organizations at all levels shall be established in accordance with the principle of democratic centralism.
Trade union committees at all levels shall be elected by their general assemblies or representative assemblies. The close relatives of the major principals of an enterprise may not be elected as the members of the basic-level trade union committee of that enterprise. Trade union committees at all levels shall be responsible to and shall submit work reports to general assemblies or representative assemblies at their respective levels and shall be subject to their supervision. Trade union general assemblies and representative assemblies shall have the right to change or dismiss their elected representatives or committee members. Trade union organizations at the higher level shall lead the trade union organizations at the lower level.
Article 10 The trade union of an enterprise, public institution or government organ with 25 or more members shall establish a basic-level trade union committee; if the members are less than 25, a basic-level trade union committee may be established separately, or a basic-level trade union committee be established by the members of 2 units or more, or may an organizer be elected to organize activities for the members. If the number of female employee is relatively large, a trade union committee for female employees may be established under the leadership of the equivalent level trade union; if the number of female employee is relatively small, female employee member shall be included in the trade union committee. The towns and townships, and urban districts with a relatively large number of enterprise employees may establish the association of basic-level trade unions. A locality at county level or above shall establish a local all-level federation of trade unions. Several enterprises of the same industry or in industries of a similar nature may establish a national or local specific industry trade union, depending on their requirements. The All-China Federation of Trade Unions shall operate uniformly at a national level.
Article 11 The establishment of a basic-level trade union, local all-level federation of trade unions or a national or local specific industry trade union must be reported to the trade union organization at the next highest level for approval.The trade unions at the higher level may assign personnel to assist the direct the enterprises to establish trade unions, no unit or individual may obstruct.
Article 12 No unit or individual may cancel or consolidate trade union organizations. If a basic-level trade union organization’s enterprise terminates its operations or its public institution or state organ is cancelled, the said trade union organization shall also be cancelled and the case be reported to the trade union at the next higher level. For the trade union cancelled according to the provisions of the preceding paragraph, the membership of its members may be reserved, and the specific management measures shall be formulated by the All-China Federation of Trade Unions.
Article 13 The trade union of an enterprise or public institution with 200 or more workers may establish full-time trade union chairman. The number of the full-time working personnel of the trade union shall be determine by the union and the enterprise or public institution through consultation.
Article 14 The All-China Federation of Trade Unions, local all-level federations of trade unions and specific industry trade unions shall have the legal person status of a social group. Basic-level trade union organizations meeting the legal person requirements stipulated by the General Principles of Civil Law shall be awarded the legal person status of a social group pursuant to the law.
Article 15 The terms of office of the basic-level trade union committee shall be three or five years each. The terms of office of the committees of the local all-level federations of trade unions and of the specific industry trade unions shall be five years each.
Article 16 A basic-level trade union committee shall hold general assembly or representative assembly periodically to discuss and decide on the major issues of the trade union work. The general assembly or representative assembly may be held temporarily upon the proposal of the basic-level trade union committee or more than one third of the trade union members.
Article 17 During their terms of office, a trade union chairman and deputy chairman shall not be arbitrarily transferred to other positions. When indeed necessary, approval shall be obtained from the respective level trade union committee and higher level trade union.
General assembly or representative assembly must be held to discuss the dismissal of the trade union chairman or deputy chairman, and the chairman and deputy chairman may not be dismissed unless all members of the general assembly or half the representatives of the representative assembly approve the dismissal.
Article 18 From the day on which the full-time chairman, deputy chairman or the committee members take their posts, the periods of their labor contracts shall be extended automatically, the periods extended shall be equal to their respective terms of office; if the unfulfilled labor contract periods of the non-full-time chairman, deputy chairman or the committee members are shorter than their respective terms of office, the labor contract periods shall be extended until their terms of office expire. But those committing serious negligence or reaching the lawful age for retirement are exceptional.