Shenzhen is ideal place for foreign company or foreigner to set up business

Shenzhen is located on a southern tip of the Chinese mainland and on the eastern bank of the Pearl River. It neighbors Hong Kong. Occupying 1,991.64 square kilometers, the city has a subtropical marine climate with plenty of rain and sunshine and is rich in tropical fruit. By the end of 2015, there were 11.38 million permanent residents.

The country's first special economic zone - the brainchild of late Chinese leader Deng Xiaoping - was established here in 1980. Shenzhen has been a touchstone for China's reform and opening-up policy since then.

 

In merely 36 years, Shenzhen, once a tiny border town of just over 30,000 people, has grown into a modern metropolis. It established many firsts in the history of world industrialization, urbanization and modernization.

The city is the high-tech and manufacturing hub of southern China, home to the world's third-busiest container port and the fourth-busiest airport on the Chinese mainland. It is one of the country's most popular tourist destinations. It was also elected one of the top 10 Chinese cities popular with expats in 2015. The high-tech, financial services, modern logistics and cultural industries are mainstays of the city. Emerging industries of strategic importance and modern service industries are quickly becoming new engines for the city's economic growth. Shenzhen has set up new standards of "Shenzhen Quality" and "China Quality" on sustainable development and globalization.

6 reasons why YOU should set up a Shenzhen company!

1) Its prime 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 thats 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. Shenzhen's close proximity to HK makes it easier for international travelers to head back home (if they can't do so directly from SZ) and serves as a shopper's paradise for everyone looking for foreign/Hong Kong brands that may not be found on the mainland in Shenzhen, but this won't necessarily be the case for much longer (see reason number 3 below).

A manufacturing powerhouse in its own right, Shenzhen is also in close proximity to the manufacturing mega cities of Guangzhou and Dongguan. These are the cities that epitomize the "Made In China" trademark, and just about everything you could possibly think of can be sourced from either of these cities. Shenzhen is also home to some of China's most successful high-tech companies, including Tencent, TP-LINK, ZTE and Huawei.

With its position in the middle of other surrounding key cities, Shenzhen is really a hotbed for anyone looking to move over, look for a job or set up a company in just about any industry, or a factory manufacturing just about any product!

2) It's an international city

Compared to all of the other big cities in China (bar perhaps Shanghai), Shenzhen is widely regarded as one of the most foreign friendly cities, and a city that oozes international appeal.

 


This city has hosted the largest-ever World University Games,  is home to what will be the world's fourth tallest building in 2016, and has seen many international artists and dignitaries grace its land in recent years. Shenzhen is a city that has literally got it all:

• modern architechtural design with a bunch of parks and surrounding mountains, making it a 'Green city'
• a highly developed transport network that covers the land, sea and skies
• loads of tourist attractions, beach resorts and one of the busiest container ports in the world
• a captivating nightlife with tons of local/foreign restaurants and bars
• cheap shopping complexes and malls with many foreign brands
• a thriving expat community with English becoming more and more prevalent with locals
• a jobs market that spans over many industries and professions

Being international creates an environment that not only makes it easier for foreigners to integrate into, but also helps to foster healthy business development and cooperation between local and foreign business people and their Shenzhen companies.

3) Its 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

A huge shopping complex is also being built in this zone, with more than 20 Hong Kong brands making the way over the border and commencing business on December the 7th 2015.

4) A company for every type of business person's needs

Whilst the setting up of a WFOE in China is perhaps one of the most popular business vehicles to choose from, there are different types of companies foreign business people can set up, each with their own unique benefits and drawbacks.

The varied selection on offer makes things incredibly easy to set up a company in any shape or size on this side. It gives business people free reign to choose a type of company that looks after their personal and business interests.

Check out our services page to find out more on the different types of companies one can register in Shenzhen when planning on doing business in China.

5) Its industrial and design parks

 

Shenzhen has specially cordoned off specific areas within its borders to accommodate for industrial and design parks:

• 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.
• Shenzhen Software Park: integrated with Shenzhen Hi-Tech Industry Park, an important vehicle established by Shenzhen Municipal Government to support the development of software industry.
• Sino-Finnish Design Park: It is an industrial design program implemented in Shenzhen on the basis of cooperation between municipal governments of Shenzhen and Helsinki.

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 businesspeople, promotes healthy competition and room for even greater innovation!

6) A doorway to the rest of Asia

I have already mentioned Shenzhen's prime location amongst some of the biggest manufacturring cities in China as one of the top reasons why you should set up a company here, but it is worth noting just how accessible the rest of Asia is from China's most competitive city.

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.

Apart from the obvious business opportunities that Shenzhen, its ports and location presents, where does everyone go once it is time to take a break from the grind? South East Asia is home to some of the most beautiful destinations in the world, and many of these destinations are only a few hours away by air from Shenzhen. Mixing business and pleasure is just what the great city of Shenzhen is about!