Shanghai Free-Trade Zone Service
Hotline: 86-755-82143348 Email: anitayao@citilinkia.com
Shanghai Free-Trade Zone (Shanghai FTZ), officially China (Shanghai) Pilot Free-Trade Zone is a free-trade zone in Shanghai, China. Launched on September 29, 2013 with the backing of Chinese Premier Li Keqiang, it is the first free-trade zone in mainland China. The zone covers an area of 29 km2, integrating four existing bonded zones— Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone.
Shanghai Free-Trade Zone (Shanghai FTZ)-Features
Shanghai Free-Trade Zone is being used as a testing ground for a number of economic and social reforms. For example, the sale of video game consoles, banned in China since 2000, will be allowed within the zone, with Microsoft aiming to have its Xbox on the market by late April. Consoles and individual games will still be subject to a case-by-case approval by the Shanghai Municipal Administration of Culture, Radio, Film & TV for manufacture and sales in China.
Although it was initially reported that Shanghai Free-Trade Zone would also have unrestricted access to the internet (with bans on sites such as Facebook lifted), the official Xinhua News Agency has stated that Internet restrictions would not be lifted.
Because the four bonded zones of the Shanghai Free Trade Zone are not technically considered PRC territory for tax purposes, commodities entering the zone are not subject to duty and customs clearance as would otherwise be the case.
Shanghai Free-Trade Zone (Shanghai FTZ)-Foreign Investment
Shanghai Free-Trade Zone introduces a number of reforms designed to create a preferential environment for foreign investment. On September 18, 2013, the State Council of China published a list of 18 service industries to receive more relaxed policies in the zone, including medical services, value-added telecommunications, ocean freight & international ship management and banking. Another important feature of the zone is found in its "negative list" approach to foreign investment, which is permitted in all sectors unless explicitly prohibited by the inclusion of a given sector on the Negative List published by the Shanghai Municipal Government. The 16 sectors thus named as restricted or prohibited for foreign investment are as follows:
Agriculture, Forestry Animal Husbandry and Fishery
• Mining
• Manufacturing
• Production and Supply of Power, Gas and Water
• Construction
• Wholesale and Retail
• Transportation, Warehousing and Postal Services
• Information Transmission, Computer Services and Software
• Finance
• Real Estate
• Leasing and Commercial Services
• Scientific Research and Technical Services
• Water Conservancy, Environmental, and Public Facilities Management
• Education
• Health and Social Industries
• Cultural, Sports and Entertainment Industries
Shanghai Free-Trade Zone-Incorporation
Shanghai Free-Trade Zone cancels out a number of financial requirements for setting up a company in China, including the minimum registration capital of RMB30,000 for limited liability companies, the RMB100,000 minimum for single shareholder companies, and the RMB5 million minimum for joint stock companies. Moreover, under the FTZ's new capital registration system, foreign investors are no longer required to contribute 15-percent capital within three months and full capital within two years of the establishment of a foreign invested enterprise (FIE).
Instead, shareholders of companies established in the Zone may agree upon the contribution amount, form, and period of contribution at their own discretion. However, shareholders are still liable for the authenticity and legality of capital contributions and will be held accountable to the company within the limits of their respective subscribed capital or shares.
In addition to these financial reforms, the FTZ also introduces a simplified procedure for foreign investors to establish a company in China. The “one-stop application processing platform” unique to the Zone requires that all application materials be submitted to and handled by the Industry and Commerce Authority (AIC) in the Zone. The relevant approval and filing procedures are then conducted via inter-departmental circulation, after which the various licenses and certificates (including the business license, enterprise code certificate, and tax registration certificate) are issued to the applicant(s) by the AIC.
This means that applicants may obtain all the necessary documents for company establishment in one place, in contrast with outside the Zone where applicants must run around between different authorities for the issuance of various certificates.
Contact Us
If you have further queries in Shanghai Free-Trade Zone (Shanghai FTZ), don’t hesitate to contact ATAHK at anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-21-68877368 21-31397142 21-58822399, or emailing to hkcfm-shanghai@163.com.
You are welcome to our company 15F, No.855 World Plaza, South Pudong Road, Pudong District, Shanghai, China.
ATAHK——Global Corporate Solution Provider, Value Investment & Strategic Development.