Business China

Guangzhou Free Trade Zone: The Potentials

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For years, Guangzhou has been the prime choice for investors all across China and abroad. Not only does this densely populous city have one of the best transport networks in China but also the geographical advantage of being adjacent to all three South China Sea, Hong Kong and Macao at once. In the year 2016, Guangzhou made it to the top of the list of UNDP’s Human Development Index. The same year, the UNP also released two full fledged reports that established Guangzhou as the world’s fastest growing city in terms of economic growth. 

This is the reason Guangzhou is also home to one of China’s eleven free trade zones. Let’s take a look at what a trade zone is and how it benefits businesses.

What is a free trade zone?

One of the biggest hassles that a business has to encounter during their operations is dealing with the customs. On the other hand, the government often makes things easier for domestic and foreign businesses by setting up free trade zones. These are special economic zones, also known as the SEZs where the businesses have the freedom to import, manufacture, handle, and export their goods without any sort of direct involvement from the customs. The aim is to provide incentives to business owners create a market friendly regulatory environment and attract foreign direct investment. 


Guangzhou as free trade zone 

There is more to free trade zones that value added tax cuts. Before heading straight to Guangzhou to set up your business, here are
some of the things you need to know about: 

1.Intellectual property protection: Other than the usual economic benefits of not having to bother with customs, all free trade zones including Guangzhou have their own intellectual property office which not only resolve all patents and copyright related disputes but also enforce these laws on those who choose not to follow them. 

2.Collaboration with Hong Kong: This is a matter of difference between the Shanghai FTZ and the Guangzhou FTZ. Any investors that hail from either from Hong Kong or Macau will be considered foreign investors in the Shanghai FTZ. On the other hand, since Guangzhou is adjacent to both of these places, the same is not the case here. In Guangzhou, the regulatory set up is much more liberalized and it facilitates all sorts of investments from Hong Kong and Macau. This means business owners in these two territories can even open up limited liability companies in the Guangzhou FTZ. 

We want to help you realize your dream of establishing your own joint venture in Guangzhou! Get in touch with Business China to get your China company registration process expedited as soon as possible. Give us a call at +86-020-2917 9715.

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