Benefits of Opening a Company in the Shenzhen Free Trade Zone

 

Shenzhen is smaller in size as compared to Shanghai and Beijing, but the city is set to expand the economy to ¥2.6 trillion by the end of 2020.

There are four state-level development zones consisting of the Shenzhen trade free zones:

• Shenzhen Yantian Port Free Trade Zone (Shenzhen Yantian Port FTZ)
• Shenzhen Futian Free Trade Zone (Shenzhen Futian FTZ)
• Shenzhen Shatoujiao Free Trade Zone (Shenzhen Shatoujiao FTZ)
• Shenzhen Yantian Port Bonded Logistic Park (Shenzhen Yantian Port BLP)

The following are the points highlighting why it is profitable to do business in the Shenzhen Free Trade Zone:

1. Lower rate of taxes

There are a lot of financial advantages and tax breaks that make doing business in Shenzhen much easy and profitable. While the national average of corporate tax in China is 30%, Shenzhen Free Trade Zone offers a corporate tax of 16.5%.

2. No duty on warehousing

This means there is no import tax for storing your imported goods. Hence, you are not required to spend hours of your time figuring the import tax and pay for the goods to be delivered in Shenzhen Free Trade Zone. Companies can directly get their goods into the mainland and ship them directly to their respective warehouses. There is no requirement for import tax.

3. Backed by the State Government

Chinese Government attracts a lot of foreign investors by providing incentives and grants. For the companies operating in Shenzhen Free Trade Zone, special ‘bonuses’ and ‘grants’ will be provided to continue doing business in the country. Such monetary incentives are remunerative enough to encourage the companies/investors to operate in Shenzhen Free Trade Zone.