Suzhou Industrial Parks: SND- An Alternative to SIP 11/30/2010

SND Suzhou National New & Hi-Tech Industrial Development ZoneAfter doing a post on the Suzhou Industrial Park earlier this month, I found that people have been very interested in the topic. So I decided to write a blog on the SIP’s main competitor, the Suzhou National New & Hi-Tech Industrial Development Zone (SND).

In case you didn’t read my earlier post on Suzhou Industrial Parks, I will re-cap some of the main points on Suzhou and then get into the detail of SND. Suzhou, China is located in the Jiangsu Province and is about a two-hour drive from Shanghai. Suzhou proper is also only about 2.5 hours away by car to the Shanghai Pudong International Airport and only about 20 minutes away by train to the Shanghai Hongqiao Airport.

Suzhou is abundant in human resources with over 24 universities and colleges in the region that produce over 500,000 students each year. Suzhou boasts over 15,000 foreign invested companies in many different industries

SND is located in the western region of Suzhou and began in 1990. Initially it was only about 52 km2 (about 32 sq. miles) By 2002, it grew to over 258 km2 (about 161 sq. miles) and is now home to over 1,738 foreign companies and USD 25 billion in FDI. There are over 150 American companies and 160 European companies with facilities in the SND. Over 55 of the Fortune 500 also have a presence in SND.

The most common industries of SND are IT, chemicals, environmental protection, new materials and precision machinery. There are now over 2,000 companies in the molding industry and 10% of China’s sensor revenue comes from Suzhou as well.

Below is a roadmap of what to expect if you are thinking of setting up Greenfield operations in SND. The SND provides free services to encourage foreign investment and assist with licensing, permits and registrations. Below is an approximate time-line of the establishment period that must be take place with the local government:

• Name verification: 1 working day
• EHS (Environmental Health & Safety Division) Pre-approval of environment impact: 5 working days
• EHS Detailed environmental assessment form: 1 week-1 month
• EHS Detailed environmental assessment report: 1-2 months
• Investment approval: 3 working days
• Business license: 5 working days

Below is a list provided by SND of things you will need to obtain a legal business license in SND:

1. Business License of parent company – 2 copies
2. Notarization and certification for the Business License of Parent Company – 2 originals
3. Authorization Letter –  2 originals
4. Credit Status of parent company Issued by Bank – 2 originals
5. Application – 2 originals
6. Application Form of Name Registration – 1 original
7. Environmental Impact Form –  5 originals
8. Application Letter for WFOE Registration –  1 original
9. Recommendation Letter for Directors and Supervisor – 2 originals
10. Recommendation Letter for GM and Deputy GMs – 2 originals
11. Articles of Association – 2 originals
12. Land Transfer/Building Leasing Contract –  1 original
13. Copy of Passports of Directors, GM, Deputy GMs and Supervisor – 2 copies

And lastly, if you are interested in Investing in China, please visit our partner site for more information on Incorporating a Business in China.