This story appeared on the management.ezinemark.com website and was originally written in Chinese. The translation into English was very basic and was difficult to understand in many places. iNews Cayman has tried to make it easier for our viewers but even now it is not perfect. We ask you to excuse our errors. The reason for publicising the article is that it is very interesting and points out the many pluses our Enterprise City proposal has against the Chinese one.

It would appear that everything the Chinese says ‘glitters’ may not turn out to be gold.

China was one of the first nations in Asia to be knowledgeable the reward of the Special Economic Zone (SEZ) model in attracting offshore work investments together with promoting exports. China’s first SEZ was started in 1980 in the Guangdong province known as the Shenzhen Special Economy Zone (SSEZ).

Since afterward, the Special Economic Zones (SEZs) has supported the wave of outsourcing as well as relocation of businesses to China to make use of cheap manual labour including lower building costs, as well as items grown entirely over China. All this has been used as a model to appeal to overseas direct investment.

Nevertheless there are many downsides with this including strategic mistakes in presuming it would be trustworthy to transfer everything to China and later finding this is not the true circumstances.

In detail Cayman Enterprise City (CEC) in the Cayman Islands has far extra positives along with productive benefits over any Chinese Special Economic Zone as detailed under.

Top Five Cayman Enterprise City (CEC) Services Advantages

#1 – Lost Schedule & Increased Expenses Managing Your Project.

Due to Chinese, language, cultural together with lawful boundaries unless your production is a considerable conglomerate it is constantly going to be very tough to directly create your enterprise in an SEZ within China.

As a replacement for inside any Special Economic Zone you will own you will use an outsource provider.

When using an outsource provider you would have to entirely understand the true recruitment cost reductions associated as well as Chinese since the outsource provider would continuously contain their expenses.  Language obstacles cause confusion together with problems, airfare, accommodation plus further travel charges at all times and these have to be factored in on top, and quality is never guaranteed. Possibly poor standards of operations resulting as of a lack of communications including cultural distinctions afterward lead to you spending further than you estimated as well as expenses in managing your opportunities yourself, along with the time zone variation between China and where you live (Especially if you are in The USA) that would frequently undervalue any economic advantage connected as well as outsourcing to China.

However, there is no have need to consider an outsource provider within the Cayman Enterprise City Special Economic Zone. You may perhaps launch your industry operations within the duty free Cayman Islands yourself easily, cheaply together with free paperwork. Furthermore regardless of whether you are a multinational fortune 500 or a 1 man dot com start-up there are wholly transparent packages along with options to accommodate everyone within Cayman Enterprise City.

Furthermore English is the originally spoken language, Cayman is on an Eastern Distinctive Time (EST) / New York schedule-zone, a Zone employment certificate & subsequently residence permits can be processed for workforce within 5 working days. Cayman’s overseas Airport is only 15 minutes from CEC, in addition to so many immigration restrictions have been lifted so you are in full control of you managing your staffing requirements plus expenses. The cost saving advantages of setting up your company within the Cayman Enterprise City Special Economic Zone are essentially apparent along with youre organisation possibly being simply managed together with/or overseen from abroad if necessary.

#2 – Copyright Challenges and Licensing

China’s copyright laws in addition to regulations are imperfect that lead to poor IP protection. Furthermore there is a total lack of policing the China’s IP laws including regulations. Furthermore this makes China a precarious place to set up house.

However in view of the fact that the Cayman Islands are a British overseas country, the Cayman Islands intellectual possessions laws together with regulations are based primarily on English Common regulation so giving greatest protection. Along with this Cayman Enterprise City Special Economic Zone is working directly plus the Cayman Islands Administration to rewrite the Cayman Islands IP laws along with regulations to further expand IP protection. This will additionally secure and organize registration including domiciling of your IP in a duty free state of affairs.

#3 – Increasing long-term expenses.

According to the Forbes magazine article The Coming Death of China’s Outsourcing China’s rate help out, which is at this time 1:2.5 in 2010 will disappear by f 2015, and ever since Chinese wages are rising at a rate of 15% a year, thus leading to increased long-term charges.

You will minimise such type of forthcoming charges as well as disruption by establishing your business inside Cayman Enterprise City.

#4 – Taxation Rates

The concept of a Tax Free Special Economic Zone in China is not what you think. Establishments are still subjected to a varying cost of corporate taxation, and a range of other hidden taxes. However the Cayman Enterprise City Special Economic Zone is certain to be free of any of these kinds of taxation (Tax Free) for a phase of fifty years pending 2061

#5 – Future Price Planning

No Special Economic Zone in China could possibly guarantee that future tax, charges, as well as cost will not rise. On the other hand the Cayman Islands legal guidelines have been amended to cater to many of these problems.

The Cayman Islands Regulations haves been amended to ensure Cayman Enterprise City is taxation free for fifty years to 2061. The rules have in addition been adjusted with the purpose that no other expenses such as the current smallest Zone Staffing Accredit fee can only be increased no more than the rate of inflation, and even this is capped at 3%pa.

To read the original aticle go to:

http://management.ezinemark.com/chinese-special-economic-zones-and-top-5-issues-to-consider-7d3621340d91.html