Ocean Freight Company

Specific Arrangements for CEPA

• Hong Kong and Macau service suppliers are permitted to establish wholly-owned or joint venture companies, in the operation of international ship management, international floating cargo storage, international shipping container base and yard, as well as non-vessel operation carrier business, in mainland China
• Use of trunk  liners to freely dispatch self-owned and chartered empty containers, shall be subject to relevant customs formalities

Form of Investment

• Wholly-owned in the operation of international ship management, international floating cargo storage, international shipping container base and yard, as well as non-vessel operation carrier business
• Incorporation of Sino-Foreign Equity Joint Venture or Sino-Foreign Co-operative Joint Venture, in the operation of international ship management, international shipping agency, international ship management, international floating cargo storage, international shipping container base and yard business
• Incorporation of wholly-owned, joint venture, co-operative venture, in the operation of international floating cargo storage business
• Incorporation of wholly-owned, joint venture, co-operative venture, for the provision of daily routine business to the vessels owned by the investors

Requirements for Incorporation

• Incorporation of Foreign Investment International Marine Transport Company
  • Available are vessels suitable for the operation of international marine transport service, which shall contain some vessels of Chinese nationality
  • The vessels put into operation shall comply with the marine traffic safety engineering standards set out by China
  • Available are bill of lading (B/L), passenger ticket or multimodal transport document
  • Staffed are senior line executives meeting the occupational requirements stipulated by the Ministry of Communications (MOCOM)
  • Incorporation of Sino-Foreign Equity Joint Venture or Sino-Foreign Co-operative Joint Venture requires the foreign investor to contribute not more than 49% of the Authorized Capital
  • The chairman and general manger of corporation shall be designated by the Chinese investor through negotiation between all investors
• Incorporation of Foreign Investment International Shipping Agency Company
  • Available are at least 2 of all senior line executives, who have more than 3 years' experience in the operation of international marine transport activities, where senior line executive refers to a Chinese citizen with medium or above title of professional or technical post, who acts as department manager or above, in international sea transport corporation or international sea transport supporting corporation
  • Available are fixed business group/office and necessary operating facilities, including the capability of electronic date interchange (EDI) with the ports and the customs and other departments
  • Incorporation of Sino-Foreign Equity Joint Venture or Sino-Foreign Co-operative Joint Venture requires the foreign investor to contribute not more than 49% of the Authorized Capital
• Incorporation of Foreign Investment International Ship Management Company
  • With senior line executives, at least 2 of them shall have more than 3 years' experience in the international marine transport business operations
  • Staff includes a captain and chief engineer with proper certificates of competency suitable to the kinds of vessels managed by them and the navigating area
  • Equipment includes fixtures and facilities fit for the international ship management business
• rporation of Foreign Investment International Floating Cargo Storage Company
  • Available is fixed business ground/office
  • Available are warehousing facilities suitable to its business scope
  • At least 2 of the senior line executives shall have more than 3 years' experience in appropriate businesses
• Incorporation of Foreign Investment International Shipping Container Base and Yard Company
  • Available is fixed business ground/office
  • Available are vehicles, cargo handling machinery, goods yard, container measuring equipment, and facilities suitable to its business scope
  • At least 2 of the senior line executives shall have more than 3 years' experience in appropriate businesses

Required Documents

• mission of following documents to the communications authority:
  • Incorporation of Foreign Investment International Marine Transport Company
    • Application for incorporation
    • Feasibility analysis report
    • Joint venture or co-operative agreement
    • Proof of fixed business ground/office
    • Investors' certificate of incorporation or ID cards
    • Senior line executives meeting the occupational requirements stipulated by the Ministry of Communications
  • Incorporation of Foreign Investment International Shipping Agency Company
    • Application for incorporation
    • Feasibility analysis report, investment agreement
    • Investors' certificate of incorporation or ID cards
    • Proof of fixed business ground/office
    • Senior line executives' occupational qualification certificates and records of services
    • Agreement about EDI with the ports and the customs and other departments. Those unqualified for EDI shall provide relevant supporting documents concerning the ports or the customs
  • Incorporation of Foreign Investment International Ship Management Company
    • Application for incorporation
    • Feasibility analysis report, investment agreement
    • Investors' certificate of incorporation or ID cards
    • Proof of fixed business ground/office
    • Senior line executives' occupational qualification certificates and records of services
    • Captain and chief engineer's certificates of competency
  • Incorporation of Foreign Investment International Floating Cargo Storage Company, Foreign Investment International Shipping Container Base and Yard Company
    • Application for incorporation
    • Feasibility analysis report
    • Joint venture or joint operation agreement
    • Investors' certificate of incorporation or ID cards
• Submission of following information to the commerce authority:
  • Application for incorporation
  • Feasibility study report
  • Joint operation contract and the articles of association of the jointly operated enterprise (only the articles of association shall be submitted by the wholly-owned)
  • Investors' certificate of incorporation and credit certificates
  • The ID cards of the proposed chairman and general manager of the corporation

If you would like further information concerning Ocean Freight Company Incorporation, please contact our professionals and we will provide you with free advisory.