China Free Zones

China Free Zones

Below is a summary of the benefits of the free trade zones recently created by the Chinese Government in Shanghai, China. If you’re looking to set up your company in China’s special economic zones, we at INCORP INTERNATIONAL are well equipped to handle it.

  • The Chinese Government created the Shanghai free trade zone in three different attractive locations, where you can set up your business. The locations include the Pu Dong international airport, the harbor area, and somewhere around the exit of Yangtze River.
  • As a bonus for creating your business in these free trade zones, you get abundant logistics services in trade sectors like supply chain management, distribution and warehouse establishment.
  • Taxes like import taxes and customs duties that are normally applied on goods during export and import, will not be applied on goods during those processes provided they are taking place between the free trade zone and other locations.
  • If your business is located in the free trade zone, you will not be required to remit corporate tax even if you engage in international operations such as shipping, warehousing, insurance and transportation.
  • Companies registered in the free trade zones are free to utilize foreign exchange without any restrictions.
  • Companies in the free zones enjoy special friendly interest rates in the stock exchange market.
  • The Chinese Renmibi is free to move across borders in the free zone.
  • Alliances are allowed between and among companies located in the free trade zone. They can collectively declare their imported goods, and goods bound for transportation in any form are more likely to be cleared by customs faster if they are owned by companies in the free trade zones.
  • The option to use offshore companies for financial transactions is available for businesses situated in the Yangshan Free Trade Port Area.
  • Foreign companies with a registered capital of RMB800,000 and above and are located within the Chinese free trade zones are eligible to enjoy deduction of input VAT from purchases and tax rebate after applying for the 17% VAT invoice as General Value Added Tax Payer qualification.
  • Additionally, companies in the free trade zones are eligible to enjoy tax rebate on a certain portion of the income after it has been taxed.