Shenzhen is one of China’s most important financial hubs. Despite being much smaller in size than Shanghai and Beijing, the city looks set to
increase its economy to ¥2.6 trillion by the end of 2020.
While this economic growth may seem unwarranted and unjustifiable at first, you’ll understand how the city generates this revenue if you take a closer look, especially at the Free Trade Zone – an economic sector which invites foreign players to invest little and earn big.
Today, we’ll be taking a closer look at why it’s profitable to do
business in Shenzhen Free Trade Zone.
1.Lower Tax Rate:
As the name suggests, the Free Trade Zone boasts unmatched financial advantages and tax breaks that make doing business here a profitable venture. The corporate tax rate in
Shenzhen Free Trade Zone is just 16.5% (as compared to the national average of 30%).
This reduced tax presents businesses a golden opportunity to start and operate a company on Chinese soil.
2.Duty Free Warehousing:
Gone are the days when you would have to devote hours of your time to figure the import tax and pay over the odds just to get your goods delivered as Shenzhen Free Trade Zone offers duty free warehousing.
All companies need to do get their goods into the country is to ship them directly to their respective FTZ warehouses and then list these products for sale in Mainland China. No import tax required!
3.State Backing:
The Chinese government is well-renowned for its ability to attract foreign investors to the country by providing them incentives and grants. This fact is perfectly encapsulated by the fact that companies that operate in Shenzhen Free Trade Zone are given ‘bonuses’ and ‘grants’ to continue doing business in the country.
These monetary incentives are lucrative enough to convince even the most skeptical of investors as it encourages them to operate in Shenzhen Free Trade Zone.
How to Penetrate the Chinese Market:
For foreign businesses and investors, making the first move can be a pretty daunting task, especially if you go about it alone. Thankfully, you don’t have to as Business China will be there to help you out with any problem you may encounter when penetrating the Chinese market.
We have years of experience in the industry and have countless organizations not only enter the Chinese market, but also to thrive in it. At Business China, we offer a comprehensive range of
company registration and
company management services to clients both foreign and domestic.
So, don’t let your dream of becoming a major player in the Shenzhen Free Trade Zone, go to waste!
Give us a call today to increase your chances of success!
