Shenzhen business setup also refers to Shenzhen company registration, Shenzhen corporate formation, or Shenzhen company formation. When looking to enter China, there are several cities both large and small to choose from, each with a specific industry focuses and localized benefits for foreign companies. However, some cities within China are better known than others and have direct ties back to Silicon Valley, one of the more notable being, Shenzhen.
Over the past few decades, Shenzhen has transformed from a farming city with a growing city center to the hardware and manufacturing capital of the world. Not to mention, one of China’s most desirable cities. Quickly Shenzhen has become more by receiving the reputation as a thriving innovation and startup ecosystem.
Shenzhen, a Soft-Landing Center in China
When looking at a city to begin doing business in China or setting up, Shenzhen is a natural choice. It is the No. 1 hardware and manufacturing hub in the world. So, if you’re in hardware, the internet of things, wearables, etc. Shenzhen is a place you’ll have to live or have a team here.
Aside from its industrial history, Shenzhen is located at the border of Hong Kong - a city which provides effortless arrival and departure without a visa. It is also the financial hub of China’s Greater Bay Area, and has a thriving startup ecosystem.
With China’s Greater Bay Area growing in importance around innovation, startups, and entrepreneurship, Shenzhen represents its change towards a “new China” showcasing special free trade zones, support for foreign businesses, and access to significant venture capital and government based funding schemes.
How Foreign Startups Should Go About Incorporating A Shenzhen Company
Shenzhen, the China's 'Silicon Valley', is now making it easier for foreign startups to incorporate here. What used to be an extremely tortuous and complex process, is now becoming a little more streamlined, although still far more difficult than opening a company in the West.
There are many high-tech zones and parks around China now where tech startups can get many benefits. One such example is the QianHai zone here in Shenzhen.
In order to attract startups, QianHai offers:
1. A corporate income tax rate of just 15% (lower than Hong Kong’s 16.5%);
2. The Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub (a large startup incubator);
3. Free housing and office space for 1 year for entrepreneurs (dependent on age and industry) who open companies there;
4. A fund to offer low-cost loans to startups;
5. Easy access to VC firms due to them being given preferential policies;
6. Individual tax for foreign experts lowered to 15% in comparison to China’s usual 25% rate.
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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