Shenzhen company formation enjoys plenty of benefits. According to results revealed by the Chinese Academy of Social Sciences earlier in 2015, Shenzhen was named as the most competitive city in China for business, overtaking Hong Kong and dethroning the business powerhouse for the first time in a decade. Shenzhen's dedication to innovation may be one of the prevailing factors in helping it reach for the skies, but it is certainly not the only one.
Reasons for Establishing a Company in Shenzhen
1. Favorable Location
When it comes to prime real estate, both for living and company/factory set up, Shenzhen takes the cake! Located in the southern province of Guangdong, on the eastern side of the PRD (Pearl River Delta) region, Shenzhen is a sprawling metropolis whose position is strengthened even further by the cities that surround it.
This coastal city is situated just North of the Hong Kong Special Administrative Region, an international hub long recognized as one the best places to do business in the region. A manufacturing powerhouse in its own right, Shenzhen is also in close proximity to the manufacturing mega cities of Guangzhou and Dongguan.
2. Economic and Tax Incentives
As a Special Economic Zone (SEZ), Shenzhen has enjoyed special economic policies and flexible government measures that has helped make it the financial juggernaut that it is today. Foreign companies that have invested in the SEZ enjoy tax incentives that make setting up shop in the region a favorable choice.
The establishment of the QianHai Zone (above) within Shenzhen is just another case of preferential policies being implemented to strengthen ties with HK, and provide foreign investors looking to set up a Shenzhen company in the zone with:
Lower labour costs;
Lower rental costs;
Closer proximity to mainland China manufacturing;
Lower corporate taxes for businesses;
Many financial incentives for businesses and individuals.
3. Industrial and Design Parks
Shenzhen has specially cordoned off specific areas within its borders to accommodate for industrial and design parks, for example,
Shenzhen Hi-Tech Industrial Park: Industries encouraged in the zone include Biotechnology/Pharmaceuticals, Building/Construction Materials, Chemicals Production and Processing, Computer Software, Electronics Assembly & Manufacturing, Instruments & Industrial Equipment Production, Medical Equipment and Supplies, Research and Development, Telecommunications Equipment.
These parks are excellent incubators for startups as they cater to so many different industries. This provides the perfect base of cooperation between local and foreign business people, promotes healthy competition and room for even greater innovation!
4. A doorway to the rest of Asia
Setting up a Shenzhen company brings the rest of South East Asia so much closer to your doorstep. Trade between some of the world's most populous and prosperous countries such as India, Indonesia and Australia is made possible by Shenzhen's location and facilitated by its numerous ports, listed as the third busiest container port in the world.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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