Foreign-invested R&D Center

Friday, 27 July 2012 10:46

R&D Centers are encouraged by the Central Government.


Proposed Company Name (must be approved

 *** `Product’s name` R&DShanghaiCo.Ltd


Type of establishment

  1.  R&D centers of independent legal persons, including JV, cooperative Ventures or WOFE.
  2.  Branches inside foreign invested companies
  3.  R&D departments inside foreign invested companies


Business scope (depend on final approval of the authority)

  •  Research and development of technologies and products related to the center’s business
  •  Technology transfer to the centers own R&D findings
  •  Technology consulting and service related to the transfer of R&D findings of the center etc.


Registered Capital:

  •      Registered Capital for Foreign invested R&D Center would be higher comparing to other types of establishment. One of the basic conditions for establishing foreign invested R&D Center in Shanghai is that the total investment in R&D should not be less than 2 million USD. However, based on recent experience Shanghai Foreign Investment Committee encourages higher investments for Foreign invested R&D Center. With the higher total investment, registered capital also would increase. We generally suggest the registered capital for foreign invested R&D center USD 500,000-800,000.
  •      It is easy to explain with the requirements of area to define in R&D zone, necessary equipment for research, recruitment of highly professional staff (80% with more than Bachelor degree holders) and other essential conditions. Registered Capital must be of an amount greater than the minimum requirement of the China Company Law.


Registered address requirements:

  •      Commercial office or plant according to R&D products.


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