What is Shanghai free trade zone?
It is a Free trade zone that is located in China and is used as a testing zone for many social and economic reforms. It is the first free trade zone which was located in the mainland of China and is said to cover an area of around 29 km. It was created on September 2013 and more than 1000 local organizations and more than 35 foreign companies registered in the Shanghai Free trade zone(SH FTZ). Banned products in the country will be allowed to be displayed on this zone, to be tested and to lift the ban that has been imposed on it. However, restricted access to the internet will not be lifted from the free trade zone, as per the Xinhua News agency because of the fact that the free trade zones are not considered to be a part of Republic China.
This zone has been a cause for many economic reforms for setting up a company including requirements such as minimum capital for limited liability companies, single shareholder companies, joint stock companies to be RMB 30000, 100000, 5 million respectively.FTZ, has also removed capital registration system that set , which states that the foreign investors should pay the 15% of capital investment to the government in three months and the full capital investment in 2 years. Moreover, the FTZ introduces simplified steps for a foreign company to be established in china online marketing.
Benefits involved in setting up a company in SH FTZ:
There is huge volume of benefits that is involved in setting up a company in FTZ. FTZ releases the hold on products of many foreign companies. They also help in Financial realm and gives more flexibility to the investors. It allows the investors to take their own time in paying the government of China of their capital investment in the company. New products that are banned in the country is allowed to be tested in the FTZ by the officials and if they are satisfied, then the ban may be lifted. The hold on tax issues are relaxed, which has helped many Foreign investor Enterprises. The foreign companies can control the stakes legally. Healthcare and shipping companies, for the first time can create a wholly foreign owned enterprise. There are 12 industries that are aided through the policies by FTZ, they are:
Is there a benefit for local companies?
By the fact that, not many foreign companies are allowed to be created in the FTZ, local companies are a clear favorite for the policies that are held in FTZ. This is why there is a overwhelming number of local companies being registered in the FTZ.
It is a Free trade zone that is located in China and is used as a testing zone for many social and economic reforms. It is the first free trade zone which was located in the mainland of China and is said to cover an area of around 29 km. It was created on September 2013 and more than 1000 local organizations and more than 35 foreign companies registered in the Shanghai Free trade zone(SH FTZ). Banned products in the country will be allowed to be displayed on this zone, to be tested and to lift the ban that has been imposed on it. However, restricted access to the internet will not be lifted from the free trade zone, as per the Xinhua News agency because of the fact that the free trade zones are not considered to be a part of Republic China.
This zone has been a cause for many economic reforms for setting up a company including requirements such as minimum capital for limited liability companies, single shareholder companies, joint stock companies to be RMB 30000, 100000, 5 million respectively.FTZ, has also removed capital registration system that set , which states that the foreign investors should pay the 15% of capital investment to the government in three months and the full capital investment in 2 years. Moreover, the FTZ introduces simplified steps for a foreign company to be established in china online marketing.
Benefits involved in setting up a company in SH FTZ:
There is huge volume of benefits that is involved in setting up a company in FTZ. FTZ releases the hold on products of many foreign companies. They also help in Financial realm and gives more flexibility to the investors. It allows the investors to take their own time in paying the government of China of their capital investment in the company. New products that are banned in the country is allowed to be tested in the FTZ by the officials and if they are satisfied, then the ban may be lifted. The hold on tax issues are relaxed, which has helped many Foreign investor Enterprises. The foreign companies can control the stakes legally. Healthcare and shipping companies, for the first time can create a wholly foreign owned enterprise. There are 12 industries that are aided through the policies by FTZ, they are:
- Shipping industries
- Value added communication
- Legal services
- Insurance
- Educational
- Banking and financial services
- Credit investigation/ reporting
- Medical and healthcare services
- Insurance
- Recruitment
- Travel agencies
- Video game console sales & services
Is there a benefit for local companies?
By the fact that, not many foreign companies are allowed to be created in the FTZ, local companies are a clear favorite for the policies that are held in FTZ. This is why there is a overwhelming number of local companies being registered in the FTZ.