Guangzhou Free Trade Zone

Free trade zone is a tariff free zone with a free port policy. It is the area where import duties or taxes on goods like raw materials are exempted. In the year 2013, the establishment of pilot FTZ in Shanghai was approved by the State Council. In the year 2014, three more free trade zones were set up among which were Tianjin, Guangdong and Fuijan.

These were established to expand the Shanghai FTZ scope of implementation. The successful testing of these free trade zones led to the confirmation and approval of these three FTZ. In order to deepen the reform, Guangzhou free trade zone was issued in 2015 located near Macau and Hong Kong.

Guangzhou free trade zone spans over an area of nearly 116.2 sq km. It integrates 3 existing bonded zones in 4 areas including:

• Nanshan New Area in Guangzhou (60 square kilometers),
• Qian Hai and Shekou Industrial Zone (28.2 square kilometers) and
• Hengqin Subdistrict in Zhuhai (28 square kilometers).

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Guangzhou free trade zone predominately focuses on: 

• The transformation and development of technological and scientific achievements, 
• International education and training, 
• Financial services, 
• Professional services, 
• Logistics services, 
• Shipping services, 
• Tourism, 
• Health services and 
• Information technology.

The Guangzhou Free Trade Zone is located in the southernmost part of the Guangzhou Nansha. It is also connected on both sides of the urban agglomeration of the mouth of the Pearl River, which plays an important role as the hub at the south of China’s opening to the sea, and the rest of the world. It is also 38 sea miles away from Hong Kong and 41 sea miles from Macao. The positioning of the Guangzhou Free Trade Zone is mainly to help transform it into the main opening to China. Its close proximity to Nansha another city that has seen massive growth in the past years is testament to the significance of the location of the Guangzhou Free Trade Zone.

In a short time, Nansha has turned into a hub for international trade and shipping, and has also grown into a formidable financial center in the region, and is one of the reasons why international businesses need to move for a WFOE formation and setup and strike while the iron’s hot. Nansha has also become the unofficial capital and business center capital of Guangzhou province. Both Hong Kong and Guangdong help establish the ‘Guangdong Depth Cooperation Zone.’ Some of the areas that are going to benefit from the Guangdong Free Trade Zone are going to be:

• Education Training
• Financial Services
• Professional Services
• Business Services
• Leisure and Tourism
• Health Services
• Shipping
• Logistics Services
• Information Technology, and so on

The Nansha bonded port area stretches 7.06 square kilometers, and includes an operation area of 3.7 square kilometers, which will feature a world-class harbor, a logistics area, a processing area and will be under close management under special customs supervision. The Nansha bonded port area is geographically located in the Pearl River Delta center, and adjacent to both Hong Kong and Macao. It also has the distinctive advantage of having a deep-water large dock, and is committed to the import of various goods, warehousing and distribution, with its international standard, distribution center, international sourcing and supply chain management, an international transit trade center and an export consolidation center. All of these world-class facilities have been incorporated into the Nansha bonded port area that’s located on the Pearl River Delta and is going to play a significant role in the upgrade and transformation of the area, and is just another reason why foreign businesses need to take advantage of China by going for a China WFOE formation and registration.

At present, the Nansha bonded port area has opened 48 domestic and foreign trade liner routes, 17 of the world's 20 largest liner companies have been stationed, and the container throughput reached 9.61 million in 2012.

Guangzhou is also considered to be a scientific and cultural center of the Southern China region, and has over 39 universities and more than 200 vocational schools and 400 scientific research institutions that contribute in the creation of an educated and highly skilled workforce. At the Guangzhou FTZ, more than 20 kilometers north of Guangzhou University City, now has 11 universities, which creates 40 thousand university graduates every year. This thriving workforce is going to be the main driving force behind the success of both Guangzhou and Nansha. It also means that foreign companies do not have to worry about getting an affordable, qualified and highly skilled workforce to run their businesses in China.

Some of the famous educational institutions that are contributing to this highly skilled workforce include, but aren’t limited to the following:

• Nansha science and technology innovation center
• The Chinese Academy of sciences research institution
• The Chinese Academy of Sciences
• Guangzhou Industrial Technology Research Institute
• Guangzhou Academy of Sciences China software application technology research institute,
• Guangzhou Academy of Sciences
• Shenyang Institute of automation China branch
• Guangzhou Academy of Sciences Chinese advanced technology research institute and
• South China Sea Institute of Oceanology
• Guangzhou modern industrial technology research institute
• Zhongshan University science and technology
• The Henry Fok Institute
• Hong Kong University Science & Technology postdoctoral workstation of various enterprises,
• R & D center,
• Zhongshan University,
• South China University of Technology,
• Guangdong University of Foreign Studies
• And a number of famous universities have been settled in Nansha to carry out China’s education skill development initiative.

The aforementioned reasons are just some of the factors when many foreign companies are looking towards the Guangzhou Free Trade Zone to get a foothold in the Chinese markets. If you are wondering how to get through the red tape to start doing business in the Guangzhou Free Trade Zone, then contact Business China for a China WFOE formation and registration.

Before doing business in any part of the world you need to know the ins and outs of the industry along with the local and international laws. When it comes to setting up a China WFOE formation and registration, the good news is that businesses looking to operate within the Guangzhou Free Trade Zone have a set of rules that have been clearly defined in the Guangzhou FTZ Advantage Policy. The following are the Guangzhou Free Trade Zone Company Formation Regulation that all foreign businesses need to follow after going through the China company registration process.

Guangzhou FTZ Advantage Policy (Guangzhou Free Trade Zone Company Formation Regulations)
1. Fiscal policyAccording to the functional orientation and industry development direction of Guangzhou FTZ, the ministry of finance, taxation administration, and relevant departments will study and formulate the preferential taxation policies to support the development of Guangzhou FTZ.



2. Financial policy

• Strengthen the financial cooperation between Guangdong, Hong Kong and Macao, and carry out the financial reform and innovation of the comprehensive management of the financial industry and foreign exchange management, so as to support the Guangzhou FTZ in the process of expanding the financial industry in the mainland and opening up to Hong Kong and Macao;
• Support Hong Kong and Macao financial institutions in accordance with CEPA preferential measures and relevant laws and regulations, set up institutions and business in Guangzhou FTZ;
• The state encourages and supports the establishment of new financial institutions in the Guangzhou FTZ to establish futures trading, credit insurance, finance lease and trust investment.
• To allow qualified Hong Kong and Macao institutions to establish joint venture securities companies, joint venture securities investment consulting companies and joint venture fund management companies in Guangzhou FTZ;
• Hong Kong and Macau insurance brokers are encouraged to set up sole proprietorship insurance agents in Guangzhou FTZ.

3. Policy of facilitating exchanges between Hong Kong and Macao

• For Guangzhou FTZ residents in the area of investment, employment and the mainland residents to handle the relationship of Hong Kong and Macao pass and endorsement, study actively push for Guangzhou FTZ residents in the area of investment, employment and the mainland residents to handle the relationship of Hong Kong and Macao pass valid visa many times a year;
• We will make it easier for foreign high-level talents to stay in the country, and make preferential policies such as relaxing the tax exemption for residence and the convenience of exchanges and visits.
• Make the famous node of the world cruise ship travel route, facilitate the entry and exit of cruise ships and their carrying personnel;
• We shall permit the registration of vessels belonging to vessels belonging to the shipping companies of Hong Kong and Macao and those belonging to non-local residences in the Guangzhou FTZ. When the conditions are ripe, explore new modes of customs clearance in Guangdong and Hong Kong and Macao;
• To relax the import yacht policy in Guangzhou FTZ, pilot the yacht insurance system, and facilitate the entry and exit of yachts in Guangdong, Hong Kong, and Macao

4. Expanding the policy of opening to the outside world

• To construct a demonstration zone for the cooperation of Guangdong and Hong Kong and Macao ports;
• When the conditions are ripe, the branch management policy should be implemented in some areas of Guangzhou FTZ.
• To simplify the entry and exit procedures of Nansha Hong Kong and Kwai Chung port of Hong Kong;
• We will expand the port area of Guangzhou port to the Nansha port area and support the export business of the container terminal at the port of Guangzhou FTZ.
• To construct a data service pilot area of Nansha (Guangdong and Hong Kong and Macao). We will allow pilots to carry out offshore data services in the Guangzhou FTZS.
• Actively guide China's compulsory product certification (CCC) testing laboratory in Guangdong province to serve Hong Kong and Macao enterprises registered in the new zone;
• We will increase the number of direct traffic indicators of Guangdong and Hong Kong and Macao

5. Land management policy

• We will support the comprehensive pilot reform of land management reform in the Guangzhou FTZ;
• In order to ensure the balance of the natural ecosystem, the necessary land for scientific development of Guangzhou FTZ shall be ensured;
• We will carry out regular assessment of land use in the Guangzhou FTZ and pilot changes in time to improve the dynamic management of the planned implementation.
• Guangzhou FTZ approved by the state council to adjust land use scale in decreasing arable land and basic farmland, must be carried out and filling of dynamic balance, ensure that land ownership and the protection of basic farmland area in Guangdong province does not reduce, quality has improved;
• We will support the pilot projects for the approval and reform of construction land in the Guangzhou FTZ, and the pilot program will be submitted to the ministry of land and resources for approval.
• Under the precondition of ensuring the safe and non-destructive water ecological environment of the estuary area, the scientific argument can be put into the water in accordance with the law

6. Marine management policy

• We will strictly enforce the law on the use of sea areas, promote the market allocation process of the area's resources, improve the use of the use of the sea area, and explore the use of secondary markets for the use of the sea.
• We will carry out environmental impact assessment work in accordance with the law, and strictly implement the reclamation plan for the protection, development, and construction of islands without destroying the functions of coastal zones, seas and Marine ecosystems. To tilt the sea reclamation plan for major projects;
• Allow Guangzhou FTZ to conform to the Marine functional zoning and land use planning area in accordance with the relevant policies in accordance with the law to apply for the use of waters, optimization, according to the procedures to explore management with the sea and land, for the management of cohesion

7. Social cause and management service policy

• Actively supporting the implementation of the national social management innovation comprehensive pilot in the Guangzhou FTZ;
• Encourage and support the international education cooperation experiment in Guangzhou FTZ;
• Allows for the construction of the Hong Kong and Macao regions, such as medical treatment service institutions and the practitioners, a certificate issued by the Hong Kong and Macao regions permission (authorization) authorities, in accordance with the mainland and Hong Kong and Macao on the provisions of the closer economic partnership arrangement after registration or license, carry out corresponding business in Guangzhou FTZ.

Over the past 30 years, the economic landscape of China has altered dramatically. Most of which has been due to the opening of its doors to foreign investments, and allowing foreign businesses to enter China. As a result, today China has grown into a global economic powerhouse with dozens of foreign companies pouring into the country, and more foreign brands looking for a WFOE formation and setup.

At present, the free trade zone is the most open area of our country, and it undertakes the task of opening up to the outside world first. Since 2013, the opening of the free trade pilot zone in Shanghai has opened the door wider for foreign investors. Shanghai free trade zone and other pilot free trade zones have implemented a management model for the rest to follow. In accordance with the central government’s requirement, our entire opening to the outside world and the use of foreign capital are also carried out in a negative list mode, which is a kind of promotion and replication.

China's new Liaoning and 11 free trade zones formed an open pattern of China's all-around system innovation in the east and west of China. The new free trade area of the foreign investment negative inventory, the version of the ‘negative list’ is to provide guidance for foreign investment in the country. This further encourages foreign investment in high-end manufacturing, intelligent manufacturing and green manufacturing in the Guangzhou Free Trade Zone.

Seven New FTZs Launched

Benefits of Doing Business with Business China

Would you like to start your new business in China, or are you looking forward to expanding your existing business to the shores of China? Then deciding to operate from the Guangzhou Free Trade Zone is a smart idea. Apart from helping all of our clients go through the China company registration process and set up their business without any hassle, we also provide the following specialized services:

• Company Establishment in Shanghai FTZ/ Guangzhou FTZ/ Shenzhen FTZ
• WFOE/Joint Venture/ Representative Office Setup
• Packaged Food/Wine/ Beverage / Baby Formula Milk Powder Import Consultation
• Foreign Investment Consultation
• Registered Address in FTZ
• Accounting and Tax Compliance Services
• FT Bank Account Opening
• Human Resources
• Payroll Services
• Work Permit Application