With the development of economy, industrial investment has become an important way for enterprises to obtain funds and achieve transformation and upgrading. Industrial investment is different from bank loans. It provides equity investment for enterprises, quantifies investment projects, and helps enterprises realize equity and asset structure optimization. Industrial investment institutions make long-term strategic investments in companies with broad market prospects, standardized management and transparent finances based on their past operating records. The industrial investment market contains two most basic environmental factors, namely the enterprise and project environment. The industrial investment market is not only a place for trading, but also a general term for trading behavior. Therefore, we need to understand the industry market through investment projects and company environment in order to make wise industrial investment decisions.
Market-oriented projects are more invested in industrial investment market
The different categories of industrial investment determine the different nature of investment returns. Venture capital gains are more short-term cashing out gains, while traditional investments pursue long-term returns over time. Bad asset disposal gains more of a sense of responsibility. The three types of investment returns are derived from the contribution of industrial investment to the invested enterprises. While achieving social benefits, industrial investment will also achieve economic benefits. The industrial investment market is more concerned with whether companies can quickly adopt new business models under competitive conditions to ensure the company continues to grow rapidly. Regardless of the type of industrial investment, including bad asset disposal, investment institutions believe that their choice is a kind of advanced rational perfect choice in the selection of industries.
Encouraged industrial investment enjoys preferential policies
For foreign investment in encouraged industries, there are also relevant preferential policies. As an important foreign investment promotion policy in China, the Catalogue of Industries Encouraged by Foreign Investment plays an important role in supporting the development of foreign investment, guiding the industrial investment of foreign investment and optimizing the regional layout of foreign investment. Foreign investment in the “Encouragement Catalog” in the industry sector can mainly enjoy three preferential policies: First, the import of equipment for self-use within the total investment amount is exempt from tariffs except for products prohibited by the state from exemption; Second, for land-intensive encouragement industrial projects, priority supply of land is given, and the base price can be determined not lower than 70% of the national industrial land transfer minimum price standard corresponding to the location; Third, for investment in Western regions and Hainan Province, the corporate income tax can be further reduced by 15%.
Procedures for foreigners to register companies and work in China
For foreigners with entrepreneurial dreams in China who choose to set up their own companies, after setting up a company, if they want to work legally and earn income in China, they still need to apply for a work permit and work residence permit. But the good news is that legal representatives or investors who invest and establish companies in China are welcomed and encouraged by all provinces and cities, and there are relevant preferential policies. The specific procedures are: Contact CCTC to determine the city to register the foreign company; Register the company according to local policy; Open a company account; Apply for the company to hire foreign capital qualification; Apply for foreigner’s work permit in China; Company foreign-related filing; Apply for work-related residence permit; Realize permanent residence and operation of company in China.
The industrial investment market contains enterprise and project environment factors. Market-oriented projects are more invested. Encouraged industries can enjoy preferential policies. Foreigners need to go through specific procedures to register companies and work in China for industrial investment.