Shanghai Hotline: 021- 58763186 , +86 18101649652
Skype/ Wechat ID: 18101649652
Shanghai free trade zone is a great place for trading activity and foreign investment. The zone integrates four existing bonded zones in the district of Pudong - Waigaoqiao Free Trade Zone. As the Chinese government announced its plans to expand the Shanghai Free Trade Zone (FTZ), it becomes the focus of attention once more as more foreign investors want to invest in Shanghai. Whether you’re looking to set up a joint venture or starting a WFOE in China.
I. Financial Benefits
Foreign investors looking to start a business in China are better off doing so in the Shanghai FTZ for a multitude of reasons. WFOE formation or any other majority-controlled subsidiaries can be established within a shorter amount of time.
Furthermore, cross-border trade is also facilitated by the easy grant of licenses. Since China wants to promote the convertibility of RMB, administrative controls have been relaxed which makes fund management easier for companies.
Moreover, logistics companies have an extra motivation to work in the Shanghai FTZ as trade goods get cleared very quickly which saves them both time and money.
II. Customs Clearance
Perhaps the biggest advantage of starting a business in the Shanghai FTZ is that there are no delays caused by Customs. The clearances can be obtained at a later time which makes the entire operation of import and export easier.
III. Easier Foreign Investment
A number of industries still face restrictions from the Chinese government which include mining, power generation, and transportation etc. However, China does plan on easing these restrictions in the long term.
Nevertheless, many of these restrictions have already been lowered in the Shanghai Free Trade Zone. This makes the Shanghai FTZ an ideal place for many of these restricted industries because it allows them to get a head start on the competition.
IV. Simplified Market Entry
It is reported that apart from blazing the trail of reform in finance and trade, the Shanghai FTZ is tasked by central authorities with exploring reforms that simplify market entry for domestic and foreign investors and strengthening supervision.
A conventional practice of starting a business is to obtain all certificates or qualifications - the most time-consuming process - before applying for a license. What the Shanghai FTZ has streamlined is how listed industries can directly apply for a license, and then just provide certain materials to keep the authorities informed of what they are doing.
Contact Us
Shanghai Hotline: 021- 58763186
Tel (Wechat): +86 18101649652
E-mail: 3001945826@qq.com
Address: Block F, 15th Floor, No.855 South Pudong Road, Pudong New Area, Shanghai
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