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Shenzhen Special Economic Zone

Shenzhen Special Economic Zone

Shenzhen Economic Zone or shortly SEZ is the first special zone in China which opened its doors for business in 1980. Focused towards export activities, but not limited to these, SEZ welcomes foreign and local investors who would like to benefit from a series of tax incentives, an excellent business environment and lots of opportunities. International players can set up WFOEs in China and grow their businesses in a very important economic zone in China. If you would like to skip the incorporation formalities and get straight to business, we invite you to address your inquiries to our company formation agents in China.

What are the conditions for opening a company in SEZ?

The rapid urbanization and the fast business development in SEZ offered excellent business conditions since decades, however, in terms of company registration in Shenzhen Economic Zone, the following should be attentively measured:

  1. The wholly foreign-owned enterprise is the proper business structure for investors in SEZ wanting to develop trading activities.
  2. A Chinese bank account, the necessary licenses and permits, and registration for taxes are mandatory.
  3. In matters of employment, you should pay attention to the labor contracts, personnel tax compliance, visa processing, salaries, etc.
  4. The accounting matters are extremely important if you want to run a large business in SEZ.

If you would like to open a WFOE in China, and especially in Shenzhen Special Economic Zone, we invite you to talk to our company formation specialists in China at any time.

Short facts about Shenzhen Economic Zone

Financial services, shipping and logistics, and high technology are the main industries which rapidly developed in this important free trade zone. Large companies take advantage of this important international innovation center which offers huge space for development like huge industrial parks, and wide connections to worldwide players and their investments. If at the beginning there was only a small village of around 30,000 people, the modernization and the industrialization took control of the zone, rising to approximately 12 million residents, a huge business potential and around USD 400 billion for the country’s GDP in 2018. The mass investments are directed to the research and development in Shenzhen, an important sector which, according to predictions, will sustain the GDP with more than 4.25%.

What are the benefits of SEZ?

Special business conditions and an excellent environment for company development are among the advantages and also the key elements which attract foreigners to establish their operations in SEZ. In regards with the company registration in SEZ, the procedures have been simplified in recent years, the Chinese authorities and especially the Industry and Commerce Authority in China offering the necessary approvals in a short period of time. The same is available for special licenses and permits for which foreign entrepreneurs dot need to wait much time, especially if all the requirements are respected. Also, being host to numerous companies from abroad, operating the finances in foreign currencies is permitted. As for the taxation of foreign companies in SEZ, the main advantage is that the corporate income tax is set at 15%, at half of the rate that is imposed outside SEZ. This tax, known as the national tax, is applicable to WFOES, equity and co-operative joint ventures and Foreign Investment Enterprises established in China and particularly in SEZ. Moreover, foreigners looking for business in SEZ will have to pay attention to the real estate and land appreciation tax, the deed tax, the vehicle and vessel license tax, plus other local fees or administrative taxes. It is recommended from the start to get a clear picture of the taxes for companies in Shenzhen Special Economic Zone and to develop your business in a stable environment. Let our team of consultants tell you more in this direction and help you start a business in China

Why open a company in SEZ?

The answer is quite simple and it refers to the multitude of business opportunities offered by this special economic zone. The fact that it is one of the most developed areas in China presents more credibility in front of future business persons and investors looking to establish their operations in China and benefit from numerous advantages. Tax reliefs, the possibility of working with foreign currencies and sending funds abroad, the experienced staff, complete ownership in the firm and creating business connections around the world are among the reasons for opening a WFOE in SEZ.

We invite you to contact our team of company formation experts in China and solicit information about how you can open a company in SEZ.