China continues to relax its regulatory environment to allow global companies to conduct business more easily through the creation of a Free Trade Zone (FTZ) in Shanghai.
Shanghai is proving to be an attractive destination for overseas investors in China since the State Counsel formally opened the FTZ last year.
The government agencies involved in the project have now released details of their FTZ policies designed to facilitate investment and increase trade. These include simplifying customs procedures, deregulating currency exchange, and improving the overall efficiency and flexibility of government regulatory controls.
Many businesses are now allowed to register with the Shanghai FTZ Administration Committee in a streamlined process never previously seen in China. Qualifying companies are no longer required to apply for approvals ahead of registration. Minimum registered capital requirements have also been eradicated for many companies. These changes have reduced the time required to open a company – by half in many cases.
Approximately 400 foreign-invested companies have registered to conduct business in the FTZ. Many foreign investors will watch the progress and impact of the FTZ with interest.
Scott Heidecke, Senior Tax Consultant at Nexia TS in China (a member firm of Nexia International), said: “As a maturing economy, China’s current focus is on helping all businesses, foreign and domestic, to participate in the global marketplace through relaxed government regulation and simplified procedures.
“The FTZ is a sign of its commitment to transforming the economy and attracting foreign inbound investment. It is also good news for businesses wanting to invest overseas.”
For more information, please contact:
Nexia TS, China
T +86 156 1833 1281
T +44 (0)7980 584049
T +44 (0)20 7096 5026
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