• Location Consulting

    The consultants of the bdp INVEST TIANJIN DESK support your move to China by providing competent assistance with the search for a location, establishing contacts and advising you regarding the possibilities of subsidies.

    Service Invest
  • Service

    Whether with the choice of the right location, the support of your China engagement, or comprehensive information - we accompany you during the entire settlement process in China.

    Service Invest

Service

Whether with the choice of the right location, the support of your China engagement, or comprehensive information - we accompany you during the entire settlement process in China. We will analyze your business requirements and find the most suitable business model for you in China. We will help you to establish your business in China.

Location consulting

We offer competent support regarding the site selection.

Subsidy advice

Make the most of your funding opportunities.

Company foundation

We support you in all phases of the foundation process.

Tax and legal issues

We help you to plan your taxes effectively.


Location consulting

The consultants of the bdp INVEST TIANJIN DESK support your move to China by providing competent assistance with the search for a location, establishing contacts and advising you regarding the possibilities of subsidies.

As a competent partner we support you with:

  • the foundation of a company in Tianjin, China
  • the establishment of a branch in Tianjin, China
  • the relocation or expansion of your business in Tianjin, China

By providing comprehensive information about the advantages of Tianjin as a business location, working out location solutions tailored to your needs or searching for suitable commercial and industrial sites, we pave your way to Tianjin.

Contact mediation

Thanks to bdp INVEST TIANJIN DESK's long-standing relationships with members of government, important authorities and a large number of companies, you benefit from our broad network.

  • Establishing contacts to local authorities in Tianjin, China
  • Support in business negotiations with local authorities
  • Support in the handling of applications and approval procedures such as registration of the company name, application for a business license, etc.
  • Investment guidance catalogue

    In the investment guidance catalogue, foreign direct investments in China are classified as "preferred", "restricted" and "prohibited". In this way, the Chinese government aims to direct foreign investment into individual regions. Prohibited investments include FDIs that are contrary to public security or the general welfare or that impair the environment. Restricted investments include business activities that are not state of the art, consume many resources and are environmentally unfriendly. Industrial sectors that have only gradually been opened up to foreign players also fall into this category. Preferential investments concern market activities implemented through advanced technologies and which contribute to the further development of the workforce and regions in Central and Western China. Currently, China's economy is moving away from more quantitative industrial growth towards environmentally friendly, resource-saving and high-quality growth. This shift means that legal conditions may change in the short term. In addition, language barriers often make it difficult for foreign entrepreneurs to access basic information, which is important for business. Small and medium-sized enterprises in particular need a broad network and good advice to keep an overview.

  • Choosing the right location

    The choice of the future location is an essential decision. An unsuitable location often entails additional expenditure. If you relocate within an economic zone, only a change procedure is necessary. When moving from one economic zone to another, this must also be approved within a city by the old economic zone and a deregistration from the tax office and a registration within the new economic zone must be made. Not only for these reasons is it advisable to discuss the choice of location at an early stage, carefully weighing up the respective advantages and disadvantages. Essential are factors such as:

    • Proximity to Chinese partners, suppliers and customers
    • Availability of qualified labour and personnel costs
    • Power availability
    • Infrastructure / traffic connections
    • Soft location factors such as quality of life, person-oriented factors, educational and health facilities
    • Support from local authorities (subsidies, investment incentives, etc.)
    • Future development

    Decisive location factors are not only the infrastructural connections, the availability of Chinese skilled personnel, wage and non-wage labour costs or tax advantages, but also the living and working environment for expatriate employees.

  • Economic and technological development zones and industrial parks

    The greatest economic growth takes place in the economic and technological development zones, where most foreign and Chinese direct investment flows. In 2019, there were already 200 economic and technological development zones approved at central and provincial level, which often offer excellent infrastructure and reliable framework conditions compared to other locations. Investors are supported by efficient administration and processes during the approval process and benefit from tax advantages in the zones.

    Examples of economic and technological development zones are:

    • Free Trade Zones
    • Economic and Technological Development Zone
    • High and New Technological Development Zone
    • Export Processing Zone and Logistikparks

Hint: Since there is competition for German investors in the zones, it is generally recommended to exchange information with companies already located in the zones in order to obtain additional relevant information for individual location decisions.

Fang Fang

Head of bdp Invest Tianjin Desk


Subsidy advice

The Chinese government is using targeted support measures to improve the regional economic structure. There is no fixed catalogue of subsidies in China - everything has to be negotiated individually with the local governments and authorities. Companies that want to invest in Tianjin have a good chance of receiving subsidies for relocating their operations or even setting up a new business in Tianjin.

The bdp INVEST TIANJIN DESK will help you to make full use of your preferential policy. We advise your company regarding:

  • Eligible projects
  • The selection of the appropriate support programme
  • Conditions for funding
  • The application
  • Alternative financing options

The bdp INVEST TIANJIN DESK will be happy to establish contact with the local authorities and accompany your project in Tianjin, China.

The actual funding amount depends on the following factors, among others:

  • Industry
  • Amount of the investment sum and the share capital
  • Type of investment
  • Geographical location of the company's headquarters in the Tianjin Port Free Trade Zone
  • Company size
  • Planned tax payment
  • Who is being funded?
    Foreign small and medium-sized enterprises (SMEs) in particular benefit from higher subsidies. Sectors such as advanced manufacturing industry, modern services and technology innovation industries are given priority. Of course, other industries can also apply for subsidies for the implementation of project ideas. Companies that could become technology or market leaders through new developments have great opportunities.
  • Which branches of industry are supported?
    • Advanced manufacturing including aerospace, new generation, information technology, fast moving consumer goods, biomedicine, new energy and new materials.
    • Modern service industries including headquarters, finance, business services, modern logistics, technology services, e-commerce, information services, cultural media and healthcare.
    • Technology innovation industry including smart manufacturing, biomedicine and internet.
  • For what purpose can funding be requested?
    In the Tianjin Port Free Trade Zone, foreign companies can apply for the following grants for their projects:
    • Tax relief
    • Rental costs or purchase of land use rights (industrial and commercial projects)
  • Tax relief
    The tax relief takes place in the form of a tax refund. The tax paid by the investor to the local tax office is refunded proportionally.

Hint: There is no fixed catalogue of grants - everything has to be negotiated individually with the local governments and authorities.

The bdp INVEST TIANJIN DESK has been commissioned by the Tianjin Port Free Trade Zone to implement the described subsidy programmes and is your central contact in the application phase. Please contact our consultants for details of all support programmes.

Fang Fang

Head of bdp Invest Tianjin Desk


Company foundation

For foreign investors, establishing a company in China can be a time-consuming task. We offer you a wide range of services in the areas of company formation. We will analyze your business requirements and find the most suitable form of business in China for you.

With the bdp Tianjin Invest Desk team you will benefit from our many years of experience in the Chinese market. We develop tailor-made solutions for your investment or company foundation in China.

Our team in China and Germany is internationally trained and has extensive experience in supporting German and European subsidiaries. We speak German, English and Chinese, understand the different cultures and can use this for your benefit in negotiations, leading them to a successful outcome for you.

In the course of setting up a company in China, there are many regulations that must not be ignored. We will advise you extensively regarding these regulations and identify possible risks. On the basis of a location analysis tailored to your needs, we will help you to find a suitable location for your company. We will support you in all phases of the foundation process: registration of the company name, registration in the commercial register, application for the business license, stamp production and opening of a bank account.

  • 1. What is the right type for your company? WFOE, joint venture or representative office

    Foreign investors often have two main motives for entering the Chinese market: on the one hand, entrepreneurs want to sell their products and services in China or on the other hand, they want to procure goods in China.

    There are various legal forms for setting up a local presence in China, which make it possible to establish a long-term commitment in China. The most common forms for companies with foreign capital participation are limited liability companies in the form of a wholly foreign owned enterprise (WFOE), equity joint venture (EJV) or cooperative/contractual joint venture (CJV).

    In order to find the appropriate legal form for your company, it helps to answer the following questions in advance:

    • Which type of company is best suited to the project?
    • Which location is the best for the investment?
    • How to find qualified personnel and what legal framework should be observed?
    • How can costs be saved through tax planning?

    The right legal form for your company depends on commercial aspects, regulatory restrictions and tax options in China and Germany.

    Hint: An in-depth analysis of the intended investment with regard to tax and legal aspects helps to avoid time-consuming and cost-intensive subsequent adjustments. For this reason, the positive and negative factors should always be weighed up before deciding to establish a company in China.

    Fang Fang

    Head of bdp Invest Tianjin Desk

  • 2. Wholly Foreign Owned Enterprise (WFOE)

    The WFOE is a limited liability company with all shareholders coming from abroad. They offer the advantage of a simplified approval process with full control over the company. This legal form is popular with German companies as it protects intellectual property and know-how.

  • 3. Equity Joint Venture und Cooperative Joint Venture (EJV und CJV)

    An equity joint venture (EJV) is a limited liability company under Chinese law. In terms of liability law, an EJV is comparable with a German GmbH.

    Cooperative Joint Ventures, or Contractual Joint Ventures (CJV) can be founded as Limited Liability Companies or in another legal form, such as a mere partnership. A CJV offers the possibility of distributing profits regardless of the size of the capital shares of the individual parties.

    Since the Chinese partner is interested in distributing profits according to the capital shares, the equity joint venture is the more common form.

    Hint: Whether EJV or CJV - the Chinese partner should be thoroughly checked in advance.

    Particular attention should be paid to:

    • Market access and distribution network
    • Financial Instruments
    • Technical skills
    • Position in the local environment
    • Influence on authorities
    • Interests pursued by the creation of the joint venture
    • Legal form of the partner
  • 4. Representative office

    Another possibility is the establishment of a representative office. This option is particularly interesting for companies that are active in the trade or service sector.

    However, representative offices are not allowed to carry out profitable activities. In essence, representative offices can support their parent company in market research, in mediating with Chinese companies and authorities, in concluding contracts or in marketing products. However, they are not allowed to develop their own business activities and sign contracts directly with Chinese customers.


Tax and legal issues

For effective tax planning, employees must observe tax regulations and develop a targeted plan. This also has an impact on the optimal return on a company's investment in China. We provide support with our expertise in Chinese tax laws, individually tailored to each case. We can also help you identify tax risks and develop effective tax planning. For this purpose, we analyze your company's situation and inform you about the tax laws in China applicable to your company. In doing so, we also answer your tax questions and give recommendations for action.

We advise you in particular in the following areas:

  • Value Added Tax
  • Corporate income tax
  • Income tax
  • In addition, we advise you on withholding tax on service fees, license income, dividends and interest income, and create practicable solutions according to Chinese and German tax law and the double taxation agreement (DTA) China-Germany.

German companies that want to invest in China need professional legal advice. Not only do these companies need professional help in understanding Chinese tax and legal regulations, they also need professional guidance to simplify the start-up process.

We offer the following consulting services:

  • Advice on the Chinese rules and regulations regarding German direct investments
  • Preparation of legal documents
  • Chinese labor law, such as employment contract and employee handbook
  • Review of the service contract between German parent company and Chinese subsidiary

Please do not hesitate to contact our consultants to have your China engagement reviewed with regard to tax and legal perspectives.

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