On 28 March 2019, CW organized a workshop in Shenzhen for a German startup delegation hosted by German Chamber of Commerce | South & Southwest China. The workshop was mainly about the requirements of establishing a business as well as annual compliance of operating a business in China especially in Shenzhen. The whole workshop sparked great interest among the participants and ended on a very satisfactory note.
Thanks to the past forty years of reform and opening-up, Shenzhen has transformed from a small fishing village to the core engine of the Guangdong-Hong Kong-Macao Greater Bay Area, especially in the high tech sector. By 2020, the total GDP of Shenzhen is expected to reach 400 billion USD.
According to the statistics released by Shenzhen Municipal Commerce Bureau, high tech industry contributes more than 40% of Shenzhen’s GDP. Shenzhen has over 11 thousand national high tech enterprises and spends more than 4% of the GDP in R&D. Around 43% of the nation’s total PCT international patents are from Shenzhen. IT manufacturing industry’s gross output value reached nearly 290 billion U.S. dollars; software business generated more than 94 billion U.S. dollars in revenue. Shenzhen’s total gross output value of IT industry accounts for 10% of the country’s total, and its smart hardware accounts for 70% of the country’s total. Since high tech industry is one of Shenzhen’s core industries, high tech enterprises are able to enjoy numerous benefits through setting up their operations there. For example, the corporate income tax rate for high-tech enterprises is 15% and those enterprises can also benefit from the “two-year exemption and three-year 50% reduction of corporate income tax” preferential policy.
Apart from the incentives mentioned above, Shenzhen provides an ideal investment environment and has attracted numerous foreign enterprises to invest in the past few decades due to its young population and well-developed investment and financial ecosystem. According to the statistics released by Shenzhen Municipal Commerce Bureau in 2018, Shenzhen has a population of approx. 18 million (around 24% of the German population) and the average age is 34 years old which is relatively young. In addition, Shenzhen has the world’s seventh largest stock exchange, over 50,000 venture capitalists and private equity firms and more than 346 domestic and foreign publicly-listed enterprises.
As a professional advisory and Certified Public Accountants firm, CW has more than 30 years of experience in offering a wide array of client-focused, tailored services such as accounting, audit and other assurance, tax, corporate secretarial, business process outsourcing and China consultancy to foreign investors. In fact, CW was awarded by Shenzhen Municipal Commerce Bureau as Annual Excellent Cooperative Institution for Investment Promotion two years in row in 2017 & 2018. With CW’s years of experience and vast network in Shenzhen, our German Desk is competent to assist German investors to set foot in China through our professional support and advisory services.