Shenzhen FTZ
Shenzhen Free Trade Zone
Register a company in the Shenzhen Free Trade Zone, the world’s hardware capital.
About the Shenzhen Free Trade Zone
Import tax exemption
Logistics infrastructure
0% Exchange rate
Shenzhen Free Trade Zone (FTZ) is a key driver of economic development and innovation in southern China. It plays a significant role in promoting international trade, investment, and business expansion for foreign and domestic companies. Established as part of China’s Free Trade Zone initiative, Shenzhen FTZ serves as a strategic hub for industries such as technology, finance, logistics, and e-commerce.
Features of Shenzhen Free Trade Zone
1. Strategic Location
Shenzhen FTZ is located in the heart of the Guangdong-Hong Kong-Macao Greater Bay Area, giving businesses access to a vast consumer market and proximity to key global markets. Its location enhances international trade opportunities with Hong Kong and Southeast Asia.
2. Subzones with Specialized Functions
Shenzhen Free Trade Zone consists of several subzones, each with a focus on specific industries:
- Qianhai & Shekou Subzone: Focuses on modern services, financial innovation, and technology.
- Futian Bonded Zone: Specializes in international logistics, bonded processing, and cross-border e-commerce.
- Yantian Port Area: An important port and logistics hub supporting import-export businesses and global trade operations.
3. Trade and Investment Facilitation
Shenzhen FTZ offers streamlined customs procedures, simplified registration processes, and reduced barriers to cross-border trade. The “single-window” system for trade services significantly improves efficiency for import and export activities.
4. Financial Innovation and Openness
The zone encourages financial innovation, particularly in fintech, cross-border banking, and RMB internationalization. Companies benefit from relaxed capital flow regulations and easier access to cross-border financial services.
5. Support for High-Tech Industries
Shenzhen FTZ is home to several tech giants and startups. It offers preferential policies and incentives to companies in areas like artificial intelligence, biotechnology, 5G technology, and advanced manufacturing.
6. IP Protection and Legal Services
The zone prioritizes intellectual property (IP) protection and provides international-standard legal services to support foreign companies in protecting their innovations and business interests.
Benefits of Shenzhen Free Trade Zone
1. Tax Incentives and Cost Reductions
Businesses in Shenzhen FTZ enjoy preferential import tax policies such as exemptions on import duties for certain goods.
2. Easier Market Entry for Foreign Companies
Foreign companies can access streamlined business registration procedures, allowing them to quickly establish a presence in China’s growing market. The zone promotes foreign investment in sectors such as finance, logistics, and high technology.
3. Enhanced Trade Opportunities
The proximity to Shenzhen’s major ports and Hong Kong enables companies to expand their global supply chains and benefit from increased trade opportunities. The zone supports cross-border e-commerce, making it easier for businesses to tap into international markets.
4. Cross-Border Financial Flexibility
Shenzhen’s role as a financial hub allows businesses to access advanced financial services, cross-border financing, and flexible capital flows. This is especially beneficial for fintech companies and international businesses looking to expand in China.
5. Talent and Workforce Availability
Shenzhen is known for its skilled workforce in the technology, finance, and logistics sectors. Companies in the free trade zone can leverage a rich pool of local and international talent.
Shenzhen 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.