Expat Health Insurance
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The best thing for you do to is to secure a job offer before making the move to Shanghai. It is not illegal for you and your father to work at the same company, and ultimatley whether the two of you could work together would be at the discretion of the employer. It would certainly be beneficial to use your fathers contacts to try and secure a job.
To legally work in China expats need to apply for a work visa (Z visa) to enter the country. After you are in China you'll need to apply for an emplyment permit and a residence visa. For this you'll need to have the minimum of a valid passport, and an offer of employment.
While there are bureaucratic backlogs in obtaining work permits, usually the burden is on the employer to get the documents processed.
For more information I recommend you take a read of the Expat Arrival's pages on Work Permits for China and Visas for China.
Best of luck securing a job and the move to Shanghai.
The job market in Shanghai is very dynamic and fast moving so it is possible to find start-ups that are willing to hire bright young professionals are offer them positions with big responsibilities at entry level.
The Expat Arrivals page on Working in Shanghai will give you a good overview of the city's job market.
However, in most cases it would the jobs that are given to expats tend to be senior management positions for those with lots of experience. So you don't necessarily need two years experience. Ultimately, it will depend on the requirements set by the employer.
You are lucky in that you have a university education. College degrees are required for most jobs in Shanghai.
As I said before, much of your success in Shanghai will depend on who you know. So start networking as soon as possible.
Good luck.