Get started setting up a Shanghai Free Trade Zone company registartion in 2022.
Let Corporation China assist you incorporate your company in Shanghai’s Free Trade Zone.
What is the meaning of a Free Trade Zone.
A Free Trade Zone is the special custom supervise system called “Domestic but out of Customs”. Which means “Open the A-line (Free Trade Zone and border line) and control the B line (Free Trade Zone and Non-Free Trade Zone)”.
The Shanghai Free Trade Zone represents China’s “Second Entrance to the World”.
Find out more about Shanghai's Free Trade Zone company registration.
Shanghai Free Trade Zone company registration.
The Shanghai Free Trade Zone aims to generate a regulatory environment for best cross-border investment and trading activities. There is a tariff-free area; which is basically used as a testing area for various investment, trade, finance, administration and legal changes.
The Shanghai Pilot Free Trade Zone is now expanding to also include Lingang’s New Area. Businesses tax cuts, duty exemptions, and beneficial policies have been introduced. The Lingang New Area will get built into a “special economic functional zone with larger international market influence and competitiveness.
SFTZ and the other free trade zones may have unique policies in place that might be expanded outside the zones itself. Shanghai Free Trade Zone Company Formation is a negative list approach and faster company registration for foreign direct.
The Zone.
Now the Shanghai Free Trade Zone covers 120 square kilometers and as of now is composed of seven bonded zones, including:
100% Ownership.
Wholly Foreign Owned Enterprise may be capitalized by foreign investors and operated without the need for Chinese partners or employees. It will provide you with greater control over your business’s operations, revenue and profit targets. A WFOE is a favorable option for both individuals or overseas company that wants to enter the Chinese market.
See WFOE – Wholly Foreign-Owned-Enterprise.
Why choose the Shanghai Free Trade Zone.
Shanghai Free-trade Zone is the first Hong Kong-like free trade area in mainland China. The benefits of China’s latest innovation in encouraging Foreign Investment are clear. It is now possible for foreign entities to open a Limited Company in Shanghai Free Trade Zone with NO real capital requirements. This is the gateway for an easy, low-risk and fast entrance into the Chinese market.
No restriction Money Transfer.
The Renminbi convertibility and relaxed administrative controls greatly facilitates treasury cross-border fund management with limited restriction Money Transfer.
Import & Export.
The Shanghai Free-trade Zone is one of the best zones in China for Export and Import. It is a bonded area, the biggest feature of The Shanghai Free Trade Zone is the special custom supervision system, meaning your goods can stay in the zone and only pay tax when entering in China.
Fast VAT Tax Back.
The VAT rate that applies to export of goods is 13% in China, the Chinese government give a VAT rebate to exporters within about 30 days in the Shanghai Free-trade Zone.
Lower Restrictions.
SFTZ has lowered barriers to foreign investment in several industries and easing restricted/prohibited industries for foreign investors.
What are the Benefits of setting up your company in the Shanghai Free Trade Zone?
The Shanghai Free Trade Zone is likened to Hong Kong that offers, free trade opportunities and innovations to encourage foreign investment.
No limits to the scope of business but according to the Shanghai Free Trade Zone’s Negative List
. Foreign investors can setup an Wholly Foreign-Owned Enterprises and operate these businesses without the need to partner with a Chinese companies or hire Chinese employees.
The Zone provides you with greater control over the operations of your China operation , as well as the opertunity to increase your revenue and profits. In addition, foreign entities can open a limited company in the Shanghai Free Trade Zone with no capital requirements, providing an essential gateway into the lucritive Chinese market.
Some of the most important benefits of setting up a company in the Shanghai Free Trade Zone include:
- Minimum investment necessary – You can establish a business in mainland China without investing in any real estate property or offices, this will minimizing your initial investment. This allows you to enter the Chinese market that may have been previously no available to Foriegn investors.
- Faster setup – Company establisment in 10- 15 working days.
- Easier entry – Shanghai Free Trade Zone encourages foreign direct investment and offers incentives for investors.
- 100% Ownership – Wholly Foreign Owned Enterprise may be capitalized by foreign investors and operated without the need for Chinese partners or employees.
- No restrictions on money transfer – Banking controls and the Renminbi convertibility is more relaxed,that encourages cross-border transfers.
- Lower-risk entry – The minimal capital injection for investment and loosened regulatory control, you can open your business in a more low-risk environment.
- Tax benefits on VAT – The China export VAT rate is 17%. However, the government has an rebate to exporters when operating in the Shanghai Free Trade Zone.
- Additional tax benefits – Tax payment is only required when leaving the zone as it acts operates in the bonded zoe area.
- Fewer restrictions – Foreign investment in various Industries is more challenging to achieve. Still, the Shanghai free-trade Zone has fewer requirements and restrictions to encourage foreign investment in China.
Advantages of Shanghai Free Trade Zone.
Encouraged Industry Fields.
Let us manage and facilitate your Shanghai Free Trade Zone registration.
Post-incorporation company procedure.
China offers the following company registration types.
Corporation China offers expertise in company registration and licensing with full back office support, human resource management services, inbound and outbound investment opportunities, due diligence, legal consulting, accounting and overseas real estate.
Corporation China Clients.
