Shanghai FTZ Significantly Boosting Local Economy
by Lorys Charalambous, Lowtax.net, Cyprus
04 January, 2017
The China (Shanghai) Pilot Free Trade Zone now represents one-quarter of the city's gross domestic product, according to city authorities.
The Zone was created in 2013 and offers new companies a number of tax preferences. It comprises a bonded area, high-tech park, financial area, and an export processing zone.
With an area of 120 square kilometers, the Zone houses more than 37,000 enterprises, including 6,300 foreign-funded companies. Among them, more than 90 percent were established by registration-based procedures, instead of being examined case-by-case by authorities ahead of their final approval.
Most foreign-funded businesses were registered in just one day within the Zone, compared with eight working days previously, according to Zone deputy director Jian Danian.
The Zone has promoted the creation of free trade accounts, and by the end of October had 58,000 free trade accounts dealing with cross-border settlements equalling CNY7.7tn yuan (USD1.11tn). These accounts involve 107 countries and regions and 26,000 domestic and overseas firms.
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