Shanghai has pioneered a cross-border digital identity authentication service that significantly streamlines business registration for foreign companies, starting with eligible Singaporean corporate investors.
The new service, which leverages distributed digital identity, verifiable credentials, and blockchain technology, allows businesses to complete the entire registration process online and reducing reliance on physical paperwork.
Chuangxing Food (Shanghai) Co Ltd, a food sales enterprise wholly owned by Singapore-based IFBH Limited, became the first beneficiary of the service. The company said the registration process was completed within two days. Its office in the Shanghai Hongqiao International Central Business District is expected to welcome its first employee within two weeks.
Previously, Singaporean companies were required to submit notarized and authenticated paper documents to verify their identities, a process that could take up to a week and involve additional costs for notarization and travel.
Under the new model, authorized signatories can complete identity verification and electronic signatures online.
According to the Urban Digital Transformation Division of the Shanghai Data Bureau, cross-border digital identity authentication remains a global challenge, and it took more than two years of joint effort between Shanghai and Singapore to materialize the new service.
This year Shanghai plans to expand this digital authentication service to facilitate its companies seeking to establish business operations in Singapore.
The city also intends to promote the model to other countries participating in the Belt and Road Initiative.
According to the Shanghai Municipal Administration for Market Regulation, Singapore ranks among the top three sources of foreign-invested enterprises in Shanghai, only next to the United States and Japan.
IFBH is a major player in the Asian coconut water market. Its CEO, Pongsakorn Pongsak, cited Shanghai’s strategic location and dynamic business climate as key factors in choosing the city for setting up the company’s China headquarters.
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