Business China

Are the Advertised Benefits of Investing in a Free Trade Zone Fact or Fiction?

+86-020-2917 9715
We’ve all heard about Free Trade Zones and how they’re great for businesses that are looking to increase their profits. Since China launched its first Free Trade Zone in 2013, countless companies from all over the world have registered and started operations in the FTZ. 

That being said, only a handful of companies have been able to yield the advertised benefits of investing in a FTZ. This has led many economists to wonder whether these advantages are fact or fiction.

Shanghai Free Trade Zone
To put an end to this aura of uncertainty, we’ve decided to look at the proven advantages of operating in a Free Trade Zone in China. Join us as we separate the fact from the fiction.

1. The Financial Benefits of Investing in a FTZ:

By far the biggest advantage of operating in a Free Trade Zone in China is the range of benefits it offers to companies. First and foremost, the time it takes to create and register a WFOE (Wholly Foreign Operated Enterprise) in the region is significantly lower which alone can save you a few thousand dollars to begin with. 

Secondly, the Chinese government goes out of its way to make the entire process of applying for a license quicker and simpler. Moreover, the convertibility of RMB significantly simplifies fund management which means you don’t have to pay thousands of dollars in compliance.

Furthermore, from a logistical point of view, trade goods are processed, logged, and cleared at an extremely fast speed which saves your company both time and money.

2. The Quick Clearance of Customs

The advantages of operating in the FTZ aren’t limited to finances as there are other benefits on offer too. For starters, the clearance of customs in the Free Trade Zone (be it import or export) are much quicker as customs can be cleared without a clearance certificate (which can be obtained a few days later). 

Company Registration in China
This enables your business to quickly react to market shortages and capitalize on time-sensitive windows of opportunity.

3. Easier Foreign Investments

The Chinese government has taken note of the most common complaints of the companies operating in its Free Trade Zones. From power generation to mining, all legal restrictions that slow down the rate of progress will be relaxed in the near future which means that it will be easier for foreign players to invest in the area!

Why Don’t All Businesses Benefit From the Free Trade Zone?

Often, the most telling difference between a company that benefits from the regulations of the Free Trade Zone and one that fails to reach its breakeven point is the third-party company registration company you opt for. Simply put, an experienced Chinese company can you’re your business adhere to the restrictions of the Free Trade Zone and ensure that you pocked a pretty profit! 

business registration in China
If you’re looking for a business consulting company that can help your business register in a Free Trade Zone in China, the Business China would love to be help! Apart from company registration, we provide other important services such as trademark registration, annual reports, company accounting, capital transfer, financial consulting and so much more! 

Get in touch with us now by giving us a call at +86-020-2917 9715 or by dropping us an email at!

  • James Oliver "True professionals, very helpful and dedicated. Your support team is fantastic."
  • Robert Gatti "Our advisor was brilliant and we were given more help that we knew we needed. What I liked most about Business China's service was the prompt and businesslike approach.It helped us dramatically. At a...
  • Vivian Belfanti "Quality work and friendliness is why I chose to work with Business China. Business China is organized very easy to work with."
  • Tim Orchard "Thanks to Business China’s professional guiding and efficient processing about company incorporation and VAT refunding, our new entity in Guangzhou already step into a virtuous circle. I have to say...
  • Victor Declety "Business China allows us to focus on our customers instead of being tangled into enterprise level business incorporation and maintance."
  • Ben Hunter "Business China is helping people who don't necessarily know how to connect your current business with the booming Chinese market and how to lay out your 'China Dream' here specifically. It has been...
  • Daniel Wong "A great customer experience! The flexability and speed of response from the account manager, as well as the quality of the service process was exceptional."
  • Stacey Morris "Businesss China has been superb. Their customer service is great. The guys there respond very quickly and go above and beyond that help."
  • M. Salem Having real-time information allows us to deal with issues immediately before they become problems.We are satisfy with Business China.
Request a Proposal

Drop Business China a quick message to let us know about your incorporation needs.