Doing Business in Shenzhen: what you need to know to get started

Shenzhen once had a population of only 30,000 individuals on the course of the Kowloon– Canton Railway. In 1979 when Shenzhen was elevated to city-status and in 1980 assigned China’s first Special Economic Zone (SEZ), things changed and the locale was opened up to private enterprise and outside investment to fuel its improvement.

Due to some language barriers, doing business in Shenzhen can be difficult, since English is hardly spoken unlike inbusiness in shenzhen Beijing and Shanghai, you have to speak Mandarin or hire an interpreter who does. Shenzhen is no doubt going to impress anyone looking for a suitable location for business.

Today, Shenzhen is now one of the fastest growing cities in the world, with a population of about 12million, according to world population review.

The city is additionally home to the Shenzhen Stock Exchange, gigantic tech firms, new businesses, and quickening agents alike. The city is also headquarters to major homegrown multinational companies such as Tencent, ZTE, Huawei, Napster, Shenzhen airline, etc.

Setting up your business in Shenzhen

Nobody wants a loss especially when it comes to doing business. Putting this factor into consideration, a suitable business location must be sought for.  Shenzhen will no doubt be a Top contender when it comes to seeking an ideal business location. Shenzhen is not just unique for doing business in the Asian continent or for doing business in China. Shenzhen, with its boisterous economy, high tech equipped environment and all the other convincing factors, sits on a very favorable spot that will be very likely to win your heart as the location for your next business. Below are five reasons why Shenzhen might just be your next business location.

Five reasons why doing business in Shenzhen is a good idea.

  1. Shenzhen is a city open to many.

If there is a city that is open to many, one of such cities, is Shenzhen. Shenzhen is a city whose population consists largely of migrants. According to Wikipedia, Shenzhen which has an official population of more than 10 million, has about six million registered migrant workers who may return to their hometown/city on the weekends but live in factory dormitories during the week. Shenzhen is also a city open to different religions. According to a survey in 2010 religions such as Christianity, Chinese folk religions, Taoism, Islam, and Buddhism existed in Shenzhen. Others that were unaffiliated to any religion including Atheists and Agnostics were also present. Along with the other favorable business conditions in Shenzhen, one might really want to call Shenzhen a city open to all.

  1. Its vibrant economy and its favorable tax system.

Behind Beijing and Shanghai, Shenzhen’s economic output comes 3rd among the 659 cities in China. In the Global Financial Centers Index 2018  (March 26, 2018), Shenzhen was ranked 18th. The total economic output of Shenzhen is higher than that of some small countries. Shenzhen’s economic output in 2017 totaled over $300 billion.

The rapid development of Shenzhen’s economy accounts for the reason it has one of the largest economies in the world. Shenzhen has a high proportion of manufacturing, exportation, and importation and this gives investors the advantage of finding the right business opportunities in Shenzhen.

Shenzhen’s population shows a great difference, from highly educated individuals to workers with low education. In June 2007, it was reported that over 20 percent of Ph.D. graduates in China had worked in Shenzhen. Shenzhen also won the spot for one of the top Chinese cities for expatriates. The job opportunities present in Shenzhen among other factors are the reason why Expatriates choose Shenzhen as a place to work. So I guess this settles your burden if you have been thinking about how to get good and qualified workers. Shenzhen was even selected as China’s Most Dynamic City and in 2014 was selected as the City Most Favored by Migrant Workers.

The presence of different business options available in Shenzhen is also important to note Options available for you to register your business in Shenzhen include;

  • Partnership Enterprise (PE)
  • Wholly Foreign Owned Enterprise (WFOE) Representative Office
  • Joint Venture, and
  • Hong Kong Company

Shenzhen’s economy surely stands as a very convincing reason for doing business in the city. China’s tax-friendly environment should also serve to win your heart over to this business hub. Click here to learn more about the differences between the business options available in Shenzhen.

  1. Its strong tech environment

Being the headquarters of some hi-tech Chinese companies makes Shenzhen a tech powerhouse. Hi-tech companies such as ZTE, TP-LINK, Huawei, and others all have their headquarters in Shenzhen.

Shenzhen is an ideal location for startups whether they are foreign or indigenous.

Some successful startups include startups like Petcube, WearVigo, and Palette.

HAX Accelerator (formerly HAXLR8R) also has its presence in Shenzhen.

Shenzhen has been referred to as the –Silicon Valley of hardware by Benjamin Joffe – a HAX Accelerator partner

Shenzhen Hi-Tech Industrial Park (SHIP) is a zone that encourages industries such as, Biotechnology, Electronics assembly and manufacturing, Chemicals Production and processing, Instrument and industrial equipment production, etc.

The Shenzhen software park also aids the development of Software.

  1. Wonderful cityscape


Shenzhen is sure not going to be a boring business city. Home to the second tallest building in China- the 599 metershenzhen cityscape Ping An Finance Center which is also the fourth tallest building in the world. Shenzhen also has other tall structures. More skyscrapers were completed in Shenzhen in 2016 than in the USA and Australia put together.

Shenzhen’s modern architecture, mountains, parks, Beaches, Museums and other tourist attractions worth visiting, will surely make Shenzhen a sight to behold. So get your cameras and selfie sticks ready for an adventure.

  1. Its unique location and good transport system

From road to air to metro, to sea and rail, Shenzhen has a well-developed transport. Shenzhen’s unique location makes trade with some popular countries including the rest of Asia possible. Shenzhen’s Bao’an international airport located 35kilometers from the central parts of Shenzhen, connects Shenzhen with some other parts of China and also to international destinations. There are transport services from the Hong Kong international airport to hotels inside Shenzhen. Shenzhen also has one of the world’s longest metro systems.

Are you thinking of import and export, with one of the world’s busiest ports, and such a great transport system, Shenzhen will win your heart.

Things to take note of while doing business in Shenzhen

Doing business in Shenzhen promises to be great, but be careful not to get into trouble. Below are two cautions to take if you are interested in doing business in Shenzhen.

  1. Beware of China’s control of internet usage.

Doing Business in China may not be the most fulfilling. One reason for that is China’s control of internet usage. Some website like Facebook, Google, Twitter, etc. are blocked in China. This will also give the local Chinese businesses such as Baidu, Tencent, and Alibaba, and some of China’s largest internet enterprises, the needed encouragement to compete domestically.

  1. Avoid leakages.

Also, counterfeiting is reported to be common in China. This is another disadvantage of doing business in China. Some counterfeit products are available in China. Counterfeit goods can range from branded products, spare parts to common consumer goods. So be informed, be on the lookout and ensure you have a good time doing business in Shenzhen.


Making the right choice for a business location is a very important part of setting up business. Hope this article did help you find one wonderful location in the world to do business.

Have a good time doing business in Shenzhen. Do visit this site again for more informative and exciting articles.


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