Welcome to Consult Domestic Companies Registered in Shanghai Free Trade Zone : 021-58369557/15001998485
In order to achieve rapid economic development, China has set up many free trade zones. With its unique advantages and preferential policies, many entrepreneurs and investors have been attracted to the free trade zones. Among them, more and more college students choose to start their own business, and the registration of domestic companies in Shanghai Free Trade Zone is the first choice of many entrepreneurs.
Shanghai Free Trade Zone is a regional free trade zone established in Shanghai by the Chinese government. It is located in Pudong and belongs to the scope of China free Trade Zone. At present, Shanghai free Trade Zone has accumulated nearly 40,000 newly registered companies, among which domestic private enterprises accounted for 78%, the newly registered enterprise activity is more than 80%, it can be seen that Shanghai free trade zone company registration is still quite hot. However, everything has two sides.
There are advantages and disadvantages. What are the advantages and disadvantages of registered domestic companies in the free trade zone?
The Advantages of Registered Companies in the Free Trade Zone
1. Tax Advantages
- Take Shanghai's former free trade zone as an example, the corporate income tax rate in line with the policy is 15%, while the corporate income tax rate in other regions is 25%;
- Reduction and exemption of import customs duties for some products, and exemption of VALUE-ADDED tax for transit transactions;
- Export tax rebate is very quick;
- The imported products can be stored in the free trade zone. If the goods are not picked up temporarily, customs duties and value-added taxes will not be paid, and the tax will be calculated when the goods are picked up, then this part of the funds will be used as working capital of the enterprise;
- Tax control panel can operate invoices by itself.
2. There is financial support
No matter where the FTZ is located, the government will issue support funds every year to ensure the development, competition and innovation of enterprises.
3. Advanced policies
Almost every policy of the government will be tested in the free trade zone first, and even will implement unique policies for the free trade zone.
-Registered on cross-border business online platform, no need for on-site registration (need actual operation site).
4. Convenient circulation
Whether the circulation of goods or capital, FTZ has unique advantages. Enterprises here can go abroad and step on the stage of globalization.
- Fast customs clearance and convenient export;
- The amount of foreign exchange is retained without name, and the free exchange of RMB and foreign currency is unlimited. It can also be directly used for overseas investment;
5. Talent attraction
In order to make the rapid development of the free trade zone, the need for talent is unprecedented, in order to attract and retain talent, there will be various talent subsidies, and even meet the conditions of direct hukou and so on.
The Disadvantages of Registered Companies in the Free Trade Zone
1. Industry restrictions
The free trade zone generally has its own positioning and industry access principles, only enterprises that meet the requirements of the free trade zone can enter.
2. Address needs to be attached
Companies registered in the free trade zone basically need to be attached to the business secretary company. If actual office space is needed, then also need to rent additional office space.
3. Imperfect development
Regulatory authorities gradually improve the free trade zone according to the actual situation, so there are certain market risks.
In general, in the free trade zone, registered company is not do more harm than good, and as free trade gradually perfect, the provisions and access standards will also be more and more strict, so thoughtful entrepreneurs need to registered company in free trade zone as soon as possible, register earlier and enjoy earlier. Who can tell what the future policy will become? If the FTZ will not be allowed to move into, it will be a big loss.
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