Chengdu FTZ
Chengdu Free Trade Zone
Register a company in the Chengdu Free Trade Zone, the fastest growing city in China.
About the Chengdu Free Trade Zone
The Chengdu Free Trade Zone (FTZ) offers trading companies preferential policies, a relaxed business environment, and access to tax exemptions on initial imports. Businesses benefit from streamlined customs procedures, 0% foreign exchange rates, multi-currency bank accounts, and a wide range of warehousing and logistics services, making it an attractive hub for trade and investment.
The Chengdu Free Trade Zone (FTZ), established in 2017 as part of the China (Sichuan) Pilot Free Trade Zone, is designed to enhance international trade and investment in southwestern China. It comprises two main areas:
Tianfu New Area: Covering approximately 90.32 square kilometers, this area focuses on high-tech industries, modern services, and international trade.
Qingbaijiang Railway Port Area: Spanning about 9.68 square kilometers, this zone capitalizes on its strategic position along the Chengdu-Europe Railway Express, serving as a pivotal hub for rail-based logistics and trade.
Key Benefits of the Chengdu FTZ:
Tax Incentives: Businesses benefit from exemptions on import duties for machinery and equipment essential for production.
Streamlined Customs Procedures: The FTZ offers simplified customs processes, leading to faster clearance times and reduced bureaucratic hurdles, thereby enhancing operational efficiency.
Foreign Exchange Flexibility: Companies can open multi-currency bank accounts within the FTZ, facilitating smoother international transactions and mitigating currency risks.
Robust Infrastructure: With advanced logistics facilities, including access to the Chengdu International Railway Port, businesses can efficiently manage supply chains and distribution networks.
Innovative Environment: The FTZ encourages innovation by supporting research and development initiatives, particularly in high-tech sectors such as biotechnology, information technology, and advanced manufacturing.
By leveraging these advantages, the Chengdu Free Trade Zone positions itself as a strategic gateway for enterprises aiming to expand their footprint in China’s southwestern region and beyond.
Import tax exemption
Logistics infrastructure
0% Exchange rate
Chengdu FTZ Registration Procedure
1. Preparation
Deciding your company's structure and details.
- Company name in Chinese
- Company name in English (optional)
- Registered address
- Registered capital
- Shareholder/s
- Business scope
2. Document submission
Collection and organizing your company registration application.
- Notarized shareholder/s documents
- Articles of incorporation
- Chinese translations of documents
- Authentication by Chinese embassy
15 working days
3. Company registration
Application with the administration for Market Regulation (AMR). Your wholly owned foreign enterprise is registered and company chops issued.
15 working days
4. Corporate Accounts
Opening of your corporate bank account & tax accounts.
- Corporate bank account
- Social insurance account
- Housing fund account
- Tax registration number
5. License applications
Application and issuance of additional licenses if applicable.
- Import / export license
- Food & beverage license
- Alcohol license
- Medicine license
6. Post-registration support
Monthly tax & accounting reports for compliance.
Our Free Trade Zones
Free Trade Zone Company Types
Trading WFOE
For companies importing into or exporting out of China.
Trading WFOEs are essentially consulting WFOEs armed with an import/export license and other licenses for specialty products. Trading companies can take advantage of Free Trade zones in Shanghai & Guangdong.
Manufacturing WFOE
For companies conducting manufacturing operations in China.
A manufacturing Wholly Foreign Owned Enterprise is a highly specialized WFOE that has passed safety and environmental government examinations in order to manufacture products in China. Ideal for assembling final or intermediate goods.
Joint Venture
For companies with foreign and Chinese shareholders.
A joint venture (JV) is a company with both foreign shareholders and Chinese shareholders. As of 2021, there is no % ownership limitation of any party in the JV. JVs are able to operate in more restrictive and higher liability business sectors within China.
Our Working Process
Consultation & Proposal
We (can) advise you on the best solution for your business model and send you our comprehensive proposal.
Signing & Payment
After reviewing the proposal, we sign the service contract and receive your payment.
Preparing Documents
We send you an application form as well as the list of documents we need from your side.
Free Trade Zones FAQs
What is a free trade zone, and how does it work in China?
A free trade zone in China is a designated area where goods can be imported, processed, and exported without customs duties. FTZs aim to encourage trade, investment, and innovation by offering streamlined administrative processes and special policies.
Why were free trade zones established in China?
FTZs were established to experiment with reforms and policies that could boost foreign investment, enhance trade liberalization, and modernize China’s economy. They act as testing grounds for economic reforms.
How many free trade zones are there in China, and where are they located?
As of now, China has 21 free trade zones located in key regions, including Shanghai, Guangdong, Hainan, and others. Each zone focuses on specific industries and strategic goals.
What are the main benefits of operating within a free trade zone?
Benefits include reduced customs duties, streamlined business registration processes, improved foreign currency management, and tax incentives.
What industries are typically encouraged in free trade zones?
Industries vary by zone but often include manufacturing, e-commerce, logistics, finance, high-tech industries, and biopharmaceuticals.
Are there specific tax advantages or incentives for companies in free trade zones?
Yes, companies may benefit from reduced corporate income tax rates, exemptions on customs duties, and VAT reductions for certain industries.
How does an FTZ differ from regular business zones in China?
FTZs are more focused on trade facilitation, financial liberalization, and innovation, while economic zones typically focus on infrastructure and broader industrial development.
Can foreign companies operate in these zones, and what are the requirements?
Yes, foreign companies are encouraged to operate in FTZs. Requirements include registering a legal entity, such as a Wholly Foreign-Owned Enterprise (WFOE), and complying with local regulations.
What types of businesses are best suited to set up in a free trade zone?
Businesses involved in international trade, logistics, manufacturing, R&D, and e-commerce benefit the most due to reduced trade barriers and incentives.
How do import and export processes differ in a free trade zone?
Goods can enter FTZs duty-free and undergo processing or storage before re-export or sale within China. Customs procedures are simplified for faster clearance.
Are there customs or tariff exemptions for goods stored or manufactured in an FTZ?
Yes, goods stored or processed within an FTZ are typically exempt from customs duties until they leave the zone and enter the domestic market.
Can goods be freely moved in and out of free trade zones without duties?
Yes, as long as the goods remain within the FTZ or are re-exported. Duties apply only when the goods enter China’s domestic market.