Set up company in Shanghai; such an idea is very appealing appeal because Shanghai is a Free Trade Zone (FTZ). There are several Free Trade Zones in China, but Shanghai was the first city that was given the opportunity to trial a FTZ in August 2013. The aim of creating this zone was to bring more foreign investment to China by lowering the restrictions in place. This is something foreign business owners have been able to benefit from in many different ways. Setting up a business in China in a Free Trade Zone means that you can now establish a Wholly Foreign Owned Enterprise (WFOE) in a much shorter time frame.
Also, Free Trade Zones promoted RMB convertibility, and there are more relaxed administrative controls in place. This facilitates treasury cross-border fund management for businesses. If you set up a company in Shanghai Free Trade Zone, you also won¡¯t need clearance until a later date for overseas shipments. The logistics operation is simplified significantly, which can reduce costs. Start-ups also have the advantage of not needing to pay any tax if they turn over less than RMB 30,000 per month. And, so long as your business scope is not within the ¡®Negative List¡¯ you can follow the same application requirements and procedures as domestic companies.
Also, Free Trade Zones promoted RMB convertibility, and there are more relaxed administrative controls in place. This facilitates treasury cross-border fund management for businesses. If you set up a company in Shanghai Free Trade Zone, you also won¡¯t need clearance until a later date for overseas shipments. The logistics operation is simplified significantly, which can reduce costs. Start-ups also have the advantage of not needing to pay any tax if they turn over less than RMB 30,000 per month. And, so long as your business scope is not within the ¡®Negative List¡¯ you can follow the same application requirements and procedures as domestic companies.
