Shenzhen Qianhai Company Registration Services
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Three-day registration
Many Hong Kong-based investors are interested in setting up operations in Qianhai because of its location, simplified registration process and preferential policies, said You Lei, chief consultant of Tenbo International Business Co, an agency that drums up investment in the zone.
"It only takes three workdays to register a company in the zone, shorter than five to 20 workdays to get the registration outside the zone," You told the Global Times on Tuesday.
The Qianhai authority streamlined the company registration process for foreign investors on May 8. From then to the end of June, 317 foreign enterprises were registered in the zone.
Preferential Tax Policies
The Qianhai zone has also offered preferential tax policies to overseas talent since 2013. Foreign professionals only have to pay a 15 percent personal income tax rate, the same as in Hong Kong. The individual income tax rate is as much as 45 percent on the rest of the mainland.
"Companies with a high percentage of overseas employees can save labor costs by setting up operations in Qianhai," Wang told the Global Times on August 5.
Qianhai plans to increase the proportion of skilled foreign workers in the zone's labor force from merely 0.76 percent in 2013 to 10 percent this year and to 20 percent in 2020, ¬according to the Qianhai authority.
Cheap credit
Cheap financing is another benefit of setting up in the Qianhai zone, several company executives said.
Qianhai was the first national experiential zone to pilot cross-border renminbi loans in 2011, allowing companies registered there to borrow in yuan from banks in Hong Kong, with some restrictions. The loans cannot be used to invest in securities, financial derivatives, wealth management products or investment properties.
"Our company will repay a cross-border 100 million yuan ($15.56 million) loan from a Hong Kong bank next week," Li Qingrong, an expert with Shenzhen ZTE Supply Chain Co, told the Global Times on August 5.
Li said the interest rates for cross-border yuan loans are lower than 4 percent, while the interest rates offered by mainland banks are around 5.5 percent.
As of the end of June, companies registered in Qianhai had borrowed nearly 30 billion yuan from the ¬offshore yuan market, according to data from the local authority.
"The program has created channels for offshore yuan to flow back to the mainland, a move to boost the renminbi's internationalization," said Zhou Zhongqing, general manager of Shenzhen Qianhai Jinglun Investment and Development Co.
Yuan deposits in Hong Kong increased by 2.1 percent month-on-month to 993 billion yuan as of the end of June, the highest level since the beginning of this year, data from the Hong Kong Monetary Authority showed on July 31.
A freer FTZ
Qianhai's advantage in low financing costs has been eroded as more free trade zones (FTZs) have granted access to cross-border renminbi loans. The pilot program for cross-border yuan loans was expanded to the Shanghai FTZ in February 2014, and to the other two areas of the Guangdong FTZ in July this year.
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