Information provided below will guide you to:
-- Obtaining Trading, Franchise and Distribution rights in China
Before 11th December 2004, Foreign-invested enterprises (FIEs), i.e. enterprises established by foreign investors in China (including wholly foreign-owned enterprises [WFOEs] or joint ventures [JV]) were only permitted to import raw materials and semi-manufactures for their own use and to export self-manufactured products directly. In this sense, FIEs generally were not permitted to trade in other products, including products manufactured by their parents and affiliates, causing inefficiencies by compelling the use of oligopolistic trading intermediaries.
But on 16th April 2004, the new Measures for Foreign Investment in Commerce (MFIC) was promulgated by Ministry of Commerce of the People's Republic of China (MOFCOM). According to the Measures, Foreign-invested commercial enterprises (FICEs, one type of FIE) can distribute imported and locally manufactured products through their own wholesale, retail and franchise systems and to provide a host of related services, including storage, warehousing and garage services, inventory management, repairs, maintenance, training and delivery after December11, 2004. It's considerable progress in the implementation of China's WTO commitment to allow foreign-invested enterprises (FIEs) to exercise trading and distribution rights.
Overall, Foreign companies now may choose one of two ways to acquire trading and distribution rights. They can set up a new, standalone foreign-invested commercial enterprises (FICE) or apply to expand the business scope of an existing FIE. Existing manufacturing FIEs, free-trade zone trading FIEs, investment companies, and regional headquarters FIEs may all apply to expand their business scopes.
Following are the updated policy of trading and distribution rights:
Trading Rights | Opening Time | From 1st July 2004, FIEs can obtain Import/Export license |
Business Scope | Import/Export product or technology | |
National treatment | Have the national treatment on "Internal sale"; "Offering for sale"; "Purchase"; "Transportation"; "Distribution"; "Using" or "Directly access to end-users" | |
Investment Capital | Minimum 1 million RMB (around 140,000USD$) | |
Distribution Rights | Opening Time | From 11th Dec, 2004 all the restriction removed |
Business Scope | Wholesale, Retail and Franchise Businesses | |
Still under restriction | Books, newspapers, journals, pharmaceuticals, chemical fertilizers, pesticides, mulching films, processed and crude oil, motor vehicles, grain, vegetable oil, sugar and cotton | |
Investment Capital | Minimum 500,000 RMB (approx. 70,000USD$) for the wholesale; Minimum 300,000 RMB (around 45,000USD$) for the retail |
A foreign invested commercial enterprise means a foreign invested enterprise, which engages in following areas:
PathToChina.com business registration department was invited to a meeting summoned by the government. The meeting has summarized developments on establishing commercial enterprises under Measures for the Administration of Foreign Investment in the PRC Commercial Sector. The statistics shows that over 600 applications for establishing FICE in Shanghai got approved between January 2006 and July 2006, Compare to last year, it's total 600 FICEs have been approved in whole year. The FICE applications really increased a lot in this year. Special for some famous international brand, like ZARA a famous fashion brand from Spain, Her turnover reaches 3,500,000RMB during the Chinese golden week (1st of May to 7th of May) and now GAP from USA, H&M from Sweden and C&A from German all get approved to establish FICE in Shanghai.
Are you the next ? For more information of FICE registration or expand to obtain trading and distribution rights, please contact PtC's offices below
More information about Foreign-Invested Commercial Enterprise:
Contact Our Regional Partners in India (Mumbai, Delhi), Singapore, Malaysia (Kuala Lumpur), China (Beijing, Shenzhen, Guangzhou, Shanghai, Suzhou, Ningbo, Hangzhou or Hong Kong) for more details:
Office Hour: Monday- Friday 0930AM-1730PM China, Singapore & Malaysia:(GMT+8); India: (GMT+6)
Beijing & Northern China Office:
-Request For Proposal-
E-mail: gifty@pathtochina.com or [Request For Proposal]
5F, SK Tower, 6A Jianguomenwai Ave., Chaoyang District, 100022,China
Tel: (86-10) 5166.4212 GMT+8 (English and Mandarin)
Regional Manager: Ms. Gifty Jia [-Bio-]
Shanghai & Eastern China Office:
-Request For Proposal-
E-mail: info@pathtochina.com[or Request For Proposal]
1038 West Nanjing Road, Suite 2508, 25 Floor, Westgate Tower, Shanghai 200040, China [-MAP-]
Tel: (86-21) 5108.8535 (English and Mandarin)
Regional Manager: Ms. Wendy Wang [-Bio-]
Ningbo Office:
E-mail: info@pathtochina.com [or Request For Proposal]
Suite 2925 South Tower, 1299 Yinxian Ave., Yinzhou, Ningbo 315040
Regional Consultant: Mr. Dean Dong [-Bio-]
Tel: (86 574) 8716.4655 GMT+8 (English and Mandarin)
Hangzhou Office:
E-mail: info@pathtochina.com [or Request For Proposal]
No. 2, 1785 Jianghan Rd.(by Binsheng Rd.), Binjiang District, Hangzhou 310051,
China
Regional Consultant: Ms. Lim
Tel: (86-21) 6218 9991 GMT+8 (English and Mandarin)
Shenzhen & Southern China Office
E-mail: echo.wang@pathtochina.com [or Request For Proposal]
6009 Yi Tian Road,
Suite 2306, New World
Tower, Shenzhen 518035
Tel: (86-755) 2397.9067 GMT+8 (English, Cantonese and Mandarin)
Regional Consultant: Ms. Echo Wang
Hong Kong Office:
-Request For Proposal-
E-mail: info@pathtochina.com [or Request For Proposal]
Suite 1701, HeNan Building, 92 Jaffe Road, Wanchai, Hong Kong[-MAP-]
Tel: (852) 6877.8862 GMT+8 (English)
Regional Partner: Simon Lee
Guangzhou Office:
161 West Lin He Rd., 23F, Tower A, Center Plaza, Guangzhou, 510620
-Request For Proposal-
Tel: (86.755) 2397.9066 GMT+8 (English)
info@pathtochina.com
Singapore & ASEAN Office
-Request For Proposal-
E-mail: info@pathtochina.com or [Request For Proposal]
Tel: (65) 8459.8655 Address: 218 Orchard Road, 6F, Singapore, 238851
Kuala Lumpur & Malaysia Office
-Request For Proposal-
E-mail: info@pathtochina.com or [Request For Proposal]
L701, Solaris, Mont Kiara 50480, Kuala Lumpur, Malaysia
New Delhi & India office:
E-mail: info@pathtochina.com [or Request For Proposal]
Ramdhan Tower, E-57, Sector-63, Noida
M: 120.453.7181 (English, Hindi)
Mumbai
E-mail: info@pathtochina.com [or Request For Proposal]
Plot 175, Santacruz, East Mumbai
M: 964.330.5355 (English, Hindi)
India Partner: Mr. Narendra Kumar
Rest of China: [Click for more details...]
Public Holidays of 2019 in China: Jan. 1, Feb. 2-10, Apr.5-7, May 1, June 7-9, Sep. 13-15, October 1-7 Malaysia: Jan. 1, 21, Feb. 1, 5-6, May 1, 20, 22, June 5-6, August 12, Sep. 2, 9, 16, Oct. 28, Dec. 25 Singapore: Jan. 1, Feb. 5-6, May 1, 20, June 5, August 9-12, Oct. 27-28, Dec. 25
Singapore Office:
PtC SINGAPORE
218 Orchard Road,
6F, Singapore 238851
Tel: (65) 8459.8655
info@pathtochina.com
Malaysia Office:
PtC Kuala Lumpur
1 Jalan Kiara,
Level 13A
Wisma Mont Kiara
Kuala Lumpur, Malaysia
Tel: 010.3738.398
info@pathtochina.com
Eastern
China Office:
PtC SHANGHAI
1038 West Nanjing Rd.,
Suite 2508, WestGate
Tower,Shanghai 200040
[-MAP-]
Tel: (86.21) 5108.8535
Regional Manager:
Ms. Wendy Wang [-Bio-]
wendy@pathtochina.com
PtC Suzhou
Suite 1029,Hengyu Plaza
135 Wangdun Road, SIP,
Suzhou, 215011
Regional Manager:
Ms. Lucy Wang
Tel: (86.512) 6530.8195
info@pathtochina.com
PtC Hangzhou
1785 Jiang Han Rd.
Hangzhou 310007,China
Regional Manager:
Ms. Lim
Tel: (8621) 6281.9991
info@pathtochina.com
PtC Ningbo
Suite 2925 South Tower,
1299 Yinxian Ave.,
Yinzhou, Ningbo, 315040
Tel: (86.574) 8716.4655
Regional Consultant:
Mr. Dean Dong [-Bio-]
info@pathtochina.com
Northern
China Office:
PtC BEIJING
5F, SK Tower,
6A Jianguomenwai Ave.,
Beijing, 100022,
Tel: (86.10) 5166.4212
Regional Manager:
Ms. Gifty Jia [-Bio-]
gifty@pathtochina.com
Southern
China Office:
PtC SHENZHEN
6009 Yi Tian Road,
Suite 2306, New World,
Tower,Shenzhen 518035
info@pathtochina.com
PtC HongKong
1701, HeNan Building,
92 Jaffe Rd., HK
Tel: (852) 6877.8862
Regional Partner:
Mr. Simon Lee
simon@pathtochina.com
PtC Guangzhou
161 West Lin He Rd., 23F
Tower A, Center Plaza,
Guangzhou, 510620
info@pathtochina.com
India Office:
NEW DELHI
Ramdhan Tower, E-57,
Sector-63, Noida
Tel: 120.453.7181
info@pathtochina.com
India Office:
Mumbai
Plot 175, Santacruz
East Mumbai, India
Tel: 964.330.5355
India Partner:
Mr. Narendra Kumar
info@pathtochina.com