Implemented Measures Help Boost Registration in Shanghai’s Free Trade Zone
Several new measures were implemented that will help ease corporate registration and customs clearing procedures proved to be good for business at the free trade zone in Shanghai. During the first three days of the work week more than 1,900 companies passed their registrations in the free trade zone.
A simplified registration system is currently on trial at the free trade zone having assisted corporations to get their business licenses in just four working days compared to the previous 29 days. Also a fast track customs declaration procedure have brought down business storage costs around 10 percent and is now allowing companies to complete its customs clearing in under an hour.
The essence of the free trade zone is policy innovation and using such innovations the zone hopes to expand to give room for growth and at the same time offer a new system of reform. Although some experts have shown concerns on companies coming to the zone and deeper reforms must be implemented especially in government interference.
Experts say that some of these companies are rushing to have themselves registered but fail to realize the real benefits. The fact that they can register their company for 1 yuan never thought on the registered capital that is needed to run the business. However others say that the main reason is not to create preferential policies in efforts to attract businesses since the zone is an open market and brings in economic reforms that will decrease the power of the government and enhance the market.