1.Types of Business Presence in Shanghai:
Before starting up a business in Shanghai, you have to know what the options are.
Foreign Investors generally establish a business presence in Shanghai in one of four ways: 

1.1 Wholly Foreign Owned Enterprise (WFOE)

WHOLLY FOREIGN OWNED ENTERPRISE (WFOE) is a limited liability company wholly owned by the foreign investor. A WFOE requires registered capital and its liability is limited to its equity , it can generate income, pays tax in China and its profit can be repatriate back to the investor's home country. Any limited liability enterprise in China which is 100% owned by a foreign company, individual(s) or companies can be called as WFOE.

1.2 Partnership Enterprise (PE)

FOREIGN INVESTED PARTNERSHIP ENTERPRISE (FIPE) for foreign investor is a new type of business presence in China (since March 1, 2010). It refers to: a) 2 or more Foreign enterprises or individuals establish a Partnership Enterprise (PE) in China; and b) Foreign enterprise(s) or individual(s) with Chinese individual or company establish a Partnership Enterprise (PE) in China. It's a new type of business entity in China, and with very little capital, partners could start a business in China easily, there's no minimum registered capital required for FIPE. Same as WFOE, FIPE could generate revenue, hire local and foreign staffs and enter into contracts with local and overseas businesses in China.

1.3 Representative Office(RO)

REPRESENTATIVE OFFICE (RO) is a liaison office of its parent company. It requires no registered capital. Its activities are limited to: product or service promotion, market research of parent company's business, quality control or contact liaison in China. A RO is generally prohibited from generating any revenue nor entering into contracts with local businesses in China.

1.4Joint Venture(JV)

JOINT VENTURE (JV) is a limited liability company formed between a Chinese company investor and a foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. A JV has usually been used by foreign investors to enter the restricted in industries such as: Education, Entertainment, Mining, Hospital etc.

1.5 SHANGHAI FREE-TRADE ZONE COMPANY (FTZ)

The Shanghai free-trade zone is one of the first in mainland China. This free-trade zone including three bonded zones: Shanghai Waigaoqiao Free Trade Zone, Shanghai Waigaoqiao Bonded Logistics Park,Yangshan Bonded Port Area and Pudong International Airport Comprehensive Free Trade Zone, covering a total of 28 square kilometers.

Jilian is dedicated to providing Chinese and foreign investors with one-stop services of registration,operation and management in the Pilot FTZ by virtue of its years’ experience and contacts in registration in these fields.

Financial Service Industry

The specific measures for opening financial services to the public are as follows: qualified foreign-funded financial institutions are allowed to establish foreign-funded banks; qualified private capital and foreign-funded financial institutions are allowed to establish Sino-foreign joint venture banks; limited license banks are allowed to be established at the pilot stage; qualified Chinese-funded banks are allowed to be engaged in offshore banking services in the Pilot FTZ.

Shipping Service Industry

In the shipping service industry, the restriction on the proportion of foreign capital in Sino-foreign joint or Sino-foreign cooperative international shipping enterprises is relaxed, and the competent transportation authority under the State Council will be responsible for developing relevant trial measures for management; non-five stars flag vessels owned by either Chinese-funded companies or Chinese-controlled companies have the priority to try to carry import and export containers between domestic coastal ports and Shanghai Port; wholly foreign-owned enterprises in international ship management are allowed to be established.

Commerce and Trade Service Industry

In terms of commerce and trade services, foreign-funded enterprises are allowed to be engaged in some specific types of value-added telecom services on the premise of guaranteeing the safety of network information (if beyond the scope of relevant administrative laws and regulations, the State Council's approval is a must); foreign-funded enterprises are allowed to be engaged in the production and sales of game and entertainment devices, and those devices passing the content examination of the competent culture authority may be available for sales in the domestic market.

Professional Service Industry

The lawyer service, credit investigation, travel agency, employment agency, investment management service, engineering design, construction service and other professional services will be further open to the public. In the Pilot FTZ, the model of cooperation between Chinese and foreign law firms will be explored; it is permissible to establish foreign-funded credit investigation companies, register Sino-foreign joint venture travel agencies and Sino-foreign employment agencies, and incorporate foreign-funded investment companies under the stockholding system; the proportions of Chinese and foreign investments in a Sino-foreign joint construction project are not limited when a wholly foreign-owned construction enterprise in the Pilot FTZ undertakes the project in Shanghai.

Cultural Service Industry

For cultural services, the Pilot FTX will cancel the limitation on the share proportion of a foreign-funded performance brokerage agency, and allow to establish wholly foreign-funded performance brokerage agencies which can provide services in Shanghai, and to establish wholly foreign-funded entertainment agencies which can provide services in the Pilot FTZ.

Social Service Industry

Regarding social services, the Pilot FTX will allow to establish Sino-foreign cooperative institutions in education and training, Sino-foreign cooperative institutions in vocational skills training, and wholly foreign-funded medical Institutions.

Preferential Policies

-Plan to open RMB capital projects
-Build an offshore finance center
-Create an innovative supervision model in the trade field
-Promote innovation and development of foreign trade logistics

2. Needful Materials for Company Registration :

(1)ID card of shareholder and legal representative;picture of legal representative
(2)Optional names for your company
(3)Scope of company business
(4)Capital for company registration,ratio of shareholders’ capital and its time limit.
(5)Accountant certificate,ID card’s copy and picture of company’s account
(6)House leasing contract of company’s registration address and leasing agreement(that house must be office building)
(7)Other compensatory materials

3. General Procedure for Company Registration:

(1)verify company’s name
(2)Sign registration files
(3)Complete company’s commercial registration
(4)Make stamps for registered company
(5)Complete company’s organization code certificate
(6)Complete company’s tax registration
All of that is about company’s registration.After that you need to open company’s account ,verify tax type and purchase invoice when your company starts operation.