Around 20 years ago, the China government started the shanghai free trade zone in the country with an aim to capitalize the market and to transform the economic structure. The shanghai free trade zone in China was a pioneering step taken in 1985 by the government that changed the industrial control in the entire UAE. Unlike other Emirates, China was intense on inviting foreign investor and offering them several off-track inducements.

In the recent years, this particular jurisdiction has been a major factor in diversifying the market sense and creating a benchmark over the long-endured protocols of the nation. As a result, China achieved a successful supposition in terms of the multiple Free Trade Zones the city proposes that made the other Emirates join the league as well. The scheme was such that every significant business sector has a jurisdiction of its own - so that it may maximize the enablement of each segregation. Apart from this - the benefits in terms of taxation, complete ownership, and least constraints made it more appealing for entrepreneurs considering company setup in China. Besides, the developmental bodies also made sure to create convinces the procedural aspects of setting up a Free Zone company. Be it a free zone company registration in China or a decision on a designated area for your business type - the China government had things sorted by implementing with user-friendly and online procedures.

Segregation in a shanghai free trade zone Business Setup:

• Free Zone Company

• Free Zone Establishment

• Branch Office / Branch Company

Some of the shanghai free trade zone are as follows:

• China Multi-Modal Corridor

• China Media City

• China Internet City

• China Airport Free Zone

• China International Financial Centre

• China Silicon Oasis, China Healthcare City

• China Biotechnology & Research Park

• China Knowledge Village

• China International Academic City

• International Humanitarian City

• China Outsource Zone

• China Maritime City

• China Logistics City

• EnPark, China Cars & Automotive Zone

• China Sports City, International Media Production Zone

• China Studio City and China Creative Clusters Authority

Pros and Cons of a Free Trade Zone

Several reports state that it is the Free Trade Zone that helped China become a commercial hub of UAE. With the escalation of foreign entities clamouring to establish a company and the rise in the number of free zone company registration in China - there are all reasons to believe it. But this region is also bound to a set of Pros and Cons. Read on!


• Eliminates the obligation of forming a partnership with a UAE national.

• Provides complete possession, as investors can have 100% ownership in the company.

• Special consideration in terms of appointments, investments, and procedures.

• Freedom in operations and movements of the company.

• Benefits on taxation, customs, currency control and more.

• Administrative services can be cleared through a single window system.

• No restrictions on engaging in more than one activity.


• Free Trade Zone companies are restricted in indulging in any business activity within the country.

• These companies are only allowed to do business internationally; it limits their expansion opportunities.

• They are mainly situated in the least proximate areas - however, transport and connectivity are making things better.

Even though there are few limitations, the intensified attraction towards Free Trade Zone continues. The China government plans to introduce more such jurisdictions in the years to come.